The categorisation of a liability to a company as a retail deposit is conditional on the liability being eligible for the treatment set out in Article 153(4) of Regulation (EU) No. 575/2013 (CRR) and where the aggregate deposits by all such enterprises on a group basis do not exceed EUR 1 million. 

The institution may include such a deposit as a retail deposit subject to meeting these conditions regardless of the approach to calculation of own funds requirements for credit risk implemented for this exposure class. Article 411(2) applies the criteria foreseen for the treatment of exposures to certain companies under Article 153(4) to liabilities. In this context the criteria are not limited to institutions using the IRB approach for the calculation of credit risk for certain companies in accordance with 153(4). 

The institution is to manage the deposit as a retail deposit, treat such deposits consistently through its internal risk management systems and in the same way as other retail deposits (i.e. not as it would treat a larger corporate deposit).

As the treatment of such a deposit as a retail deposit results in a lower outflow rate, this beneficial treatment is subject to obtaining the background information required to classify them as such.

As mentioned in Q&A 128, it should also be noted that under Article 8 (1)(d) of Directive 2005/60/EC institutions are obliged to conduct ongoing monitoring of the business relationship. This includes scrutiny of transactions undertaken throughout the course of that relationship to ensure that the transactions being conducted are consistent with the institution's or person's knowledge of the customer, the business and risk profile, including, where necessary, the source of funds and ensuring that the documents, data or information held are kept up-to-date. These requirements should be helpful in providing an institution with information necessary for the purpose of classifying a client.