Question
How should a non-banking entity within a non-financial group set up to act as a central corporate treasury function be classified for the purposes of LCR?
Background on the question
It is uncertain whether a non-banking entity within a non-financial group set up to act as a central corporate treasury function would qualify as a financial customer under Article 3(9)(a) to(i) of the Delegated Regulation 2015/61. The only way such an entity could qualify as a financial customer would be if it performed an activity listed in Annex I of Directive 2013/36/ (CRD). The only activity that could apply here would be activity No. (1) of the list of activities subject to mutual recognition, i.e. "Taking deposits and other repayable funds".
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.