AI Summary of Article 428r 0 % required stable funding factor
This document outlines the assets exempt from a required stable funding factor of 0%, including unencumbered Level 1 high-quality liquid assets, eligible shares in collective investment undertakings, and various claims on central banks with short maturities. Additional provisions address trade receivables and securities financing transactions that meet specific criteria.
Notably, competent authorities may impose a higher required stable funding factor on reserves, with specific consideration for central bank requirements. This flexibility recognises the stability required for longer-term reserve obligations, particularly impacting subsidiaries operating within jurisdictions with distinct regulatory frameworks.
Article 428r 0 % required stable funding factor
1. The following assets shall be subject to a 0 % required stable funding factor:
(a) unencumbered assets that are eligible as level 1 high quality liquid assets pursuant to the delegated act referred to in Article 460(1), excluding extremely high quality covered bonds specified in that delegated act, regardless of whether they comply with the operational requirements as set out in that delegated act;
(b) unencumbered shares or units in CIUs that are eligible for a 0 % haircut for the calculation of the liquidity coverage ratio pursuant to the delegated act referred to in Article 460(1), regardless of whether they comply with the operational requirements and with the requirements on the composition of the liquidity buffer set out in that delegated act;
(c) all reserves held by the institution in the ECB or in the central bank of a Member State or the central bank of a third country, including required reserves and excess reserves;