Question
What is the LCR treatment of liquidity inflows stemming from factoring business?
Background on the question
Liquidity inflows from factoring business are not explicitly referred to in Article 32 of Delegated Regulation (EU) 2015/61 as amended by Delegated Regulation (EU) 2018/1620. It needs to be clarified whether such inflows could be treated as inflows from trade finance transactions referred to in Article 32(2)(b) of the same Regulation or whether they would need to be treated differently.
Answer
This question has been rejected because the objective of the Q&A tool is not to answer questions that put into doubt the correctness of the legal framework, seek a modification of the legal framework or would require such a modification in order to address the question. For further information on the purpose of this tool and on how to submit questions, please see'Additional background and guidance for asking questions'