AI Summary of Article 428az 100 % required stable funding factor
This summary outlines the assets subjected to a 100% required stable funding factor under the specified regulatory framework. Notably, assets encumbered for a residual maturity of one year or more and various classes of loans and exposures are included in this categorisation.
Furthermore, institutions must apply this funding factor to the positive difference between netting sets' fair values. It is crucial to note that variation margin received and posted by institutions impacts the fair value calculations, contingent upon the eligibility of collateral as a level 1 asset and the operational capability for its reuse.
Article 428az 100 % required stable funding factor
1. The following assets shall be subject to a 100 % required stable funding factor:
(a) any assets encumbered for a residual maturity of one year or more;
(b) any assets other than those referred to in Articles 428as to 428ay, including loans to financial customers having a residual contractual maturity of one year or more, non-performing exposures, items deducted from own funds, fixed assets, non-exchange traded equities, retained interest, insurance assets, defaulted securities.
2. Institutions shall apply a 100 % required stable funding factor to the difference, if positive, between the sum of fair values across all netting sets with positive fair value and the sum of fair values across all netting sets with negative fair value calculated in accordance with Article 428d.
The following rules shall apply to the calculation referred to in the first subparagraph: