Discussion paper on retail deposits subject to higher outflows for the purposes of liquidity reporting under the Capital Requirements Regulation (CRR)

The European Banking Authority (EBA) publishes today a discussion paper on the retail deposits subject to higher outflows for the purposes of liquidity reporting under the Capital Requirements Regulation (CRR). This paper outlines the EBA’s preliminary thinking on a methodology for identifying retail deposits subject to higher outflows and for calculating the associated outflow rates. The consultation runs until 21 March 2013.
The proposal presented in this discussion paper is to take into account the likelihood of retail deposits leading to outflows of liquidity during the next 30 days. These outflows shall be assessed under the assumption of a combined idiosyncratic and market-wide stress scenario.
The final objective is to ensure a consistent and comparable measure of outflow rates across institutions for deposits subject to higher outflows.
The draft CRR requires the EBA, having taken into account the behaviour of local depositors as advised by national competent authorities, to publish either guidelines or implementing technical standards (1) on the criteria for determining the conditions of application of the CRR provisions in relation to the identification of retail deposits subject to higher outflows than specified in the CRR. Finally, the EBA is to specify the definitions of those deposits and the appropriate outflows for the purposes of liquidity reporting.

Consultation process
The EBA invites comments on all matters in this paper.
Please send your comments to the EBA by email to EBA-DP-2013-02@eba.europa.eu by 21 March 2013, indicating the reference EBA/2013/DP/02.
All contributions received will be published following the close of the consultation, unless requested otherwise.

Note
(1) The mandate assigned to the EBA in relation to retail deposits subject to higher outflows for the purposes of liquidity reporting is different in the CRR depending on whether the draft text is the European Commission’s proposal, the Council’s compromise (Presidency compromise) or the European Parliament’s text.