Question
Interest flows for retail on sight accounts (without contractual maturity)
Background on the question
For retail retail on sight accounts (without contractual maturity), which amount of interest should be considered? Only up to one day as this is the duration reported on the template or should it be higher according to duration based on internal models?
Answer
Following paragraphs 6 and 12(c) of Part I of Annex XXIII - instructions for completing the maturity ladder template of Annex XXII of Commission Implementing Regulation (EU) 2021/451; sight retail deposits (without a stated maturity) should be reported overnight including the interest flows accrued and not settled yet that can be called for pay-out by the provider of the funding – following the provisions set out in Article 22(2)(b) of Delegated Regulation (EU) 2015/61. The same approach should apply to the LCR reporting (C73.00) – which follows Q&A 2017_3128.