13. Determining higher outflows

13.1. Institutions should apply the following methodology in categorising deposits subject to higher outflows:

Page 14 of 29 13.2. Factors described above in Part 2 of these Guidelines should be divided into two categories:

• (a) High Risk, comprising the following risk factors:
• (i) the currency of deposits;
• (ii) product-linked deposits;
• (iii) products that are rate-driven or have preferential conditions;
• (iv) high-risk distribution channels, including Internet only access and brokered deposits;
• (v) high value deposits;
• (vi) other characteristics that the institution considers of high risk in accordance with paragraph 13 of the Guidelines above.
• (b) Very High Risk, comprising the following risk factors:
• (i) maturing fixed-term or notice period deposits;
• (ii) non-resident deposits;
• (iii) very high value of the deposit.

13.3. Institutions should assess retail deposits against the set of factors described above.

13.4. Institutions should assign retail deposits to one of the three following tiered buckets defined on the basis of the number of risk factors attributed to the underlying deposit:

• (a) deposits with two factors from category 1;
• (b) deposits with three factors from category 1, or with one factor from category 1 and one factor from category 2;
• (c) deposits with two factors from category 2, or with two factors from category 1 and one factor from category 2, or with any other mix of factors.

13.5. Institutions should estimate the corresponding higher outflow rates for each bucket according to the historical and expected volatility assessment.

1. Visão geral

1.1 Referências

1.2 Requisitos identificados

1.3 Normas relacionadas

2. Requisitos identificados

3. Normas relacionadas

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/