AI Summary of Article 428g Deposits in institutional protection schemes and cooperative networks
This excerpt outlines the regulatory requirements for institutions participating in specific institutional protection schemes and cooperative networks regarding their sight deposits at a central institution. These deposits, deemed liquid assets under applicable delegated acts, must adhere to defined stable funding factors applicable to their categorisation as level 1, level 2A, or level 2B assets.
Furthermore, the central institution must apply the relevant symmetric available stable funding factor, ensuring compliance with liquidity coverage ratio calculations. This framework emphasises the importance of diligent asset management in maintaining regulatory standards and safeguarding institutional liquidity.
Article 428g Deposits in institutional protection schemes and cooperative networks
Where an institution belongs to an institutional protection scheme of the type referred to in Article 113(7), to a network that is eligible for the waiver provided for in Article 10, or to a cooperative network in a Member State, the sight deposits that the institution maintains with the central institution and that the depositing institution considers to be liquid assets pursuant to the delegated act referred to in Article 460(1) shall be subject to the following:
(a) the depositing institution shall apply the required stable funding factor under Section 2 of Chapter 4, depending on the treatment of those sight deposits as level 1, level 2A or level 2B assets pursuant to the delegated act referred to in Article 460(1) and depending on the relevant haircut applied to those sight deposits for the calculation of the liquidity coverage ratio;
(b) the central institution receiving the deposit shall apply the corresponding symmetric available stable funding factor.