AI Summary of Article 428a Application on a consolidated basis
This section outlines the consolidated application of the net stable funding ratio for subsidiaries based in third countries. It emphasises that assets and off-balance-sheet items, when assessed under national law, may require adherence to higher stable funding factors if mandated by the hosting jurisdiction.
Conversely, liabilities and own funds are to be consolidated according to lower available stable funding factors if specified by the third country’s regulatory framework. Furthermore, certain third-country assets may be excluded from liquid asset recognition for consolidation unless they meet the liquidity coverage requirements outlined in the respective national law.
Article 428a Application on a consolidated basis
Where the net stable funding ratio set out in this Title applies on a consolidated basis in accordance with Article 11(4), the following provisions shall apply:
(a) the assets and off-balance-sheet items of a subsidiary having its head office in a third country which are subject to required stable funding factors under the net stable funding requirement set out in the national law of that third country that are higher than those specified in Chapter 4 shall be subject to consolidation in accordance with the higher factors specified in the national law of that third country;
(b) the liabilities and own funds of a subsidiary having its head office in a third country which are subject to available stable funding factors under the net stable funding requirement set out in the national law of that third country that are lower than those specified in Chapter 3 shall be subject to consolidation in accordance with the lower factors specified in the national law of that third country;