QA2019-110 - COVERED DEPOSITS

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Feb 01, 2024
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QA2019-110

Question


Furthermore, we require how to understand the instructions about information regarding the Outstanding Amount: "... the outstanding amount is composed of both the principal amount and the accrued interest on each instrument" (according to the definition of the above mentioned European legislation). How should the "Covered deposits" row be produced? It’s correct our interpretation according to which the outstanding amount is formed by the sum of the accounting balance (principal), the competence to be accredited and the accruals? If we calculate the amount as above, what is previously protected? Outstanding principal amount and then accrued interest? Or proportionally based on the weight of the two components compared to the outstanding amount? The request derives from the fact that we don’t know how to distribute the amounts in the T05 template (columns 070 and 080).


Response


The total balance on the deposit, both principal and accrued interest, should be considered for the outstanding amount. This is also relevant in determining the split between covered and uncovered amounts.