- Question ID
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2015_1764
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
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422
- Paragraph
-
5
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
- Article/Paragraph
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31a(1)
- Type of submitter
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Credit institution
- Subject matter
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Treatment of Sovereign Wealth Funds as non-financial customers or financial customers
- Question
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If an institution has unsecured deposits from a Sovereign Wealth Fund, are those deposits from financial customers or deposits from non-financial customers?
- Background on the question
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Article 422(5) of Regulation (EU) No 575/2013 (CRR) states that deposits from non-financial customers that do not fulfil the criteria of paragraphs 3 and 4 should be treated with a 40% outflow rate. However there is no definition of what a non-financial customer is. It is clear that non-financial corporations are included here and that banks and financial corporations are not included. But it is unclear if a Sovereign Wealth Fund is treated like a financial customer or like a Government/Sovereign (meaning it is a non-financial customer).
- Submission date
- Final publishing date
-
- Final answer
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For liquidity coverage and stable funding purposes, in the absence of a specific provision on unsecured deposits from a Sovereign Wealth Fund under Regulation (EU) No 575/2013 (CRR) or the Delegated Regulation (EU) 2015/61, unsecured deposits from a Sovereign Wealth Fund should be considered as deposits from financial customers under Article
422(5) of the CRR31a(1) of the Delegated Regulation (EU) 2015/61 unless the Sovereign Wealth Fund is 100% owned by the sovereign and managed by a public sector entity as per Article 4(1)(8) of the CRR, in which case they should be considered as deposits from a public sector entity, or is managed by a central bank as per Article 4 (1)(46) of the CRR, in which case they should be considered as deposits from a central bank. - Status
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Final Q&A
- Answer prepared by
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Answer prepared by the EBA.
- Note to Q&A
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Update 26.03.2021: This Q&A has been updated in the light of the changes introduced to Commission Delegated Regulation (EU) No 2015/61.
Disclaimer
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.