- Question ID
-
2024_7152
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Supervisory reporting - Liquidity (LCR, NSFR, AMM)
- Article
-
430
- Paragraph
-
1
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions (repealed)
- Article/Paragraph
-
Annex XXIII
- Type of submitter
-
Competent authority
- Subject matter
-
Treatment of deposits pledged as collateral against loans in c66.01
- Question
-
How should deposits pledged as collateral against loans be reported in c66.01?
- Background on the question
-
According to the applicable instructions for row 0260 (section “Outflows”) of c66.01 (Reg. (EU) 2021/451 Annex XXIII), deposits received as collateral are exempted from this row. This is also reflected in the label of the row.
From the instructions, it is unclear whether the relevant outflow of these deposits (at the maturity date of the loan against which the collateral is provided) should be reported in a different row or be excluded from the maturity ladder scope. In our view, the outflow should be reported, otherwise there would be a mismatch due to the expected inflow from the collection of the loan and the zero corresponding outflow of the deposit. This approach would be in line with the conservative treatment described in par. 12 of the applicable instructions, where rules are provided for the allocation of the outflows arising from all types of deposits. As regards the row where this outflow should be reported, there are two options: i) the relevant amount shall be netted against the inflow from the collection of the loan (in the relevant row of item 2.2 “Monies due not reported in 2.1 resulting from loans and advances granted to” or ii) the relevant amount shall be reported in row 0370 “Other outflows” given that they do not fall into any of the other available rows.
- Submission date
- Final publishing date
-
- Final answer
-
In accordance with point 6 of the Annex XXIII of the Commission Implementing Regulation (EU) 2021/451, the section entitled ‘Outflows and inflows’ of the template C 66.01 shall cover future contractual cash flows from all on- and off- balance sheet items pursuant to contracts valid at the reporting date.
According to the instructions for row 0370 of that template, cash outflows not reported in items 1.1, 1.2, 1.3, 1.4 or 1.5 shall be reported there. Therefore, outflows from the return of deposits received as collateral, at the expiry of the collateralized transaction, shall be reported in row 0370, provided they meet the criteria stated in point 6.
- Status
-
Final Q&A
- Answer prepared by
-
Answer prepared by the EBA.
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.