Question
How should excess of cash as part of reverse repo transaction be reported in LCR C74 template?
Background on the question
Reporting institution entered into reverse repo transaction with a bank where the value of collateral borrowed does not fully cover the amount of cash lent, so the transaction is undercollateralized and there is an excess of cash lent. Maturity date of the transaction is within 30 days.
Answer
This question has been rejected because the issue it deals with is already explained or addressed in Article 30, paragraphs 2 and 3 of Commission Delegated Regulation (EU) 2015/61 (LCR DR).The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts. The Q&A process cannot, for example, consider issues which would require changes to the regulatory framework.For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.