Question
IIlogical validations in Annex XV
Background on the question
We believe that next validations (form Annex XV) may contain logical errors: - v1548_m: sum({C 61.00.x, r040, (c010-050)}) = sum({C 52.00.w, c010, (r020-030)}) - v1549_m: sum({C 61.00.x, r050, (c010-050)}) = sum({C 52.00.w, (r040-050), c010}) - v1550_m: sum({C 61.00.x, r060, (c010-050)}) = sum({C 52.00.w, c010, (r060-090)}) Total retail deposits in stable funding in RSF can be higher than retail outflows in LCR.
Answer
The Stable Funding Template C 61.00 row 040, 050, 060 only refers to Art. 421(1) and 421(2) of the Regulation (EU) No 575/2013 (CRR) what might lead to interpret that retail deposits according to Art. 421(5) of the CRR (e.g, term deposits when the depositor is not allowed to withdraw within 30 days) should not be reported under rows 040, 050, 060 in C 61.00. However, term deposits must certainly be taken into account as items providing stable funding. Consequently, the instructions for rows 040, 050 and 060 in C 61.00 shall clarify that retail deposits according to Art. 421(5) of the CRR shall also be included, a legal reference to Art. 421(5) shall be inserted in C 61.00 for rows 040,050 and 060 and validation rules shall be rectified as follows:- v1548_m: sum({C 61.00.x, r040, (c010-c050)}) >= sum({C 52.00.w, c010, (r020-030)})- v1549_m: sum({C 61.00.x, r050, (c010-c050)}) >= sum({C 52.00.w, c010, (r040-050)})- v1550_m: sum({C 61.00.x, r060, (c010-c050)}) >= sum({C 52.00.w, c010, (r060-090)}).