Customer deposits can be temporary unavailable for owner due to more reasons:

• missing documentation,
• blocked by Court, Tax authorities, the other financial institutions, suppliers,
• client is in OFAC list, etc.

In which positions in F1.2 and F.8.1 these deposits should be presented:

1. Deposits,
2. Other Financial liabilities, or
3. Non-financial liabilities.

Liabilities are defined in accordance with Annex V Part I, section 5.3:

35. Financial liabilities shall be distributed among the following classes of instruments: ‘Derivatives’, ‘Short positions’, ‘Deposits’, ‘Debt securities issued’ and ‘Other financial liabilities’.

36. For the purposes of Annexes III and IV as well as this Annex, ‘deposits’ shall be deposits as defined in the Table of Part 2 of Annex II to the ECB BSI Regulation.

38. ‘Other financial liabilities’ shall include all financial liabilities other than derivatives, short positions, deposits and debt securities issued.

41. ‘Other financial liabilities’ shall also include dividends to be paid, amounts payable in respect of suspense and transit items, and amounts payable in respect of future settlements of transactions in securities or foreign exchange transactions where payables for transactions are recognised before the payment date.

and Part II, section 1.2:

13. Liabilities that are not financial liabilities and that due to their nature could not be classified in specific balance sheet items shall be reported in ‘Other liabilities’.

Also, Deposits categories are in accordance with the Table of Part 2 of Annex II to the ECB BSI Regulation split in to:

• Overnight deposits,
• Deposits with agreed maturity,
• Deposits redeemable at notice, and
• Repos.

If these deposits can be considered as suspense, then based on Annex V they should be presented as Other financial liabilities.

From the other side, if these deposits can be considered as subject to restrictions according to national practice, then they should be present as Deposit, with category Deposits redeemable at notice.

At the end, from our point of view classification to Other liabilities can’t be met, due the fact that these deposits are in accordance with IAS 32, under definition of financial instruments, and also they can be classified in specific balance sheet.

Also, even this question isn’t subject of FINREP reporting, we would like to clarify with you can they be present in more time bucket of Contractual Flow Maturity in C66.01 – Maturity Ladder?  Based on Table of Part 2 of Annex II to the ECB BSI Regulation they can be in more time buckets which are ‘up to and including three months’.

Table of Part 2 of Annex II to the ECB BSI Regulation, 9.3. Deposits redeemable at notice: ”Non-transferable deposits without any agreed maturity which cannot be converted into currency without a period of prior notice; before the expiry the conversion into currency is not possible or possible only with a penalty. They include deposits which, although perhaps legally withdrawable on demand, would be subject to penalties and restrictions according to national practice (classified in the maturity band ‘up to and including three months’), and investment accounts without period of notice or agreed maturity, but which contain restrictive drawing provisions (classified in the maturity band ‘over three months’).