7.2 Information on funding strategy

On the funding strategy, competent authorities should ensure that they receive from institutions the following:

• a. description of the general set-up of the funding plan, including sources of funding, tenors, key markets, products used, etc.;
• b. where appropriate, a policy document on maintaining presence in markets in order to ensure and periodically test market access and fund raising capacity of the institution, where relevant;
• c. where appropriate, a policy document on funding concentration risk, including on the principles for measuring and monitoring of correlation between funding sources and economic connection between depositors and other liquidity providers;
• d. where appropriate, a policy on funding in foreign currencies, including the most relevant assumptions with regard to availability and convertibility of these currencies.

7.2.2 Operational documentation

On evidencing the full implementation of the funding strategy, competent authorities should ensure that they receive from institutions the following:

• a. the current funding plan;
• b. an quantitative overview of the characteristics, such as volumes, prices and investor appetite, of recent funds raised and an analysis of the feasibility of the execution of the funding plan taken into account (changes in) market volatility;
• c. a forward-looking view on the (desired) development of the funding position over a forward-looking time horizon specified in the EBA Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2⁷ ;
• d. an assessment of the funding position and funding risk after execution of the funding plan;
• e. information on back-testing of the funding plan in accordance with the requirements of the EBA Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2.

⁷ EBA/GL/2014/04 of 19 June 2014