Question ID
2023_6722
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Liquidity risk
Article
460
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Name of institution / submitter
Nederlandse Financierings-Maatschappij voor Ontwikkelingslanden N.V.
Country of incorporation / residence
Netherlands
Type of submitter
Credit institution
Subject matter
Reserves held by the credit institution in a central bank
Question

How to report a negative eligible withdrawable amount in LCR template 72 row 050 ID 1.1.1.2. Item Withdrawable central bank reserves Amount/Market value column 010.

For example

Central bank balance:                                1,659,504

Minimum reserve:                                      2,323,727

Total withdrawable central bank reserve:     - 664,224

 

There are two EBA validition rule which indicates that withdrawable central bank reserves Amount/Market value should be >= 0.

EBA v7683_s. : [C 72.00.a (All rows, c0010)] {C 72.00.a} >= 0.

EBA v7681_s: : [C 72.00. r0010;0020;0030;0040;0050;0060;0070;0080;0090;0100;0110;0120;0130;0140;0150;0160;0170;0180;0190;0200;0210;0220;0230;0240;0250;0260;0270;0280;0290;0300;0310;0320;0330;0340;0350;0360;0370;0380;0390;0400;0410;0420;0430;0440;0450;0460;0470, c0040)] {C 72.00.a} >= 0

Background on the question

According to Annex XXIV EBA_ITS-2015-04 ITS on reporting for the LCR. From the central bank reserve the  minimum reserve should be subtracked. Taking an average of the minimum reserve on their central bank account is permitted for institutions. It is possible that at the end of the month, the difference between the minimum reserve and the total withdrawable central bank reserve would be negative. 

For example

Central bank balance:                                1,659,504

Minimum reserve:                                      2,323,727

Total withdrawable central bank reserve:     - 664,224 (correct amount)

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because to ensure the effectiveness of the Q&A process it focuses on answering questions that are likely to be relevant to a broad set of stakeholders – for example, a large number, broad range or wide geographical distribution – rather than questions which address circumstances which appear likely to be relevant only to the particular circumstances of certain stakeholders or transactions.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status
Rejected question