- automatic interest rate option
means an explicit or implicit option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No 575/2013 of the European Parliament and of the Council, including an option under which the institution is likely to provide its counterparty with a pay-out irrespective of a contractual obligation, that complies with all of the following:
- behavioural interest rate option
means an option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No 575/2013, including an option under which the institution is likely to provide its counterparty with a pay-out irrespective of a contractual obligation, and that complies with all of the following:
- core component
means the part of a stable non-maturity deposit that is unlikely to reprice, even under significant changes in the interest rate environment;
- fixed rate instrument
means an instrument that generates cash flows of interest payments that are pre-determined based on a fixed interest rate until the point of its contractual maturity;
- floating rate instrument
means an instrument the interest rate of which is reset at pre-determined dates, either in response to a change in an interest rate benchmark as defined in Article 3(1), point (22), of Regulation (EU) 2016/1011, or in an institution’s internally managed index;
- geographical location
means the country of incorporation of those debtors or depositors that are legal persons, or the country of residence of those debtors or depositors that are natural persons;
- non-core component
means the part of the non-maturity deposit other than its core component;
- non-maturity deposit
means a liability without a maturity date, in which the depositor is free to withdraw the deposit at any point in time;
- notional repricing cash flow
means any of the following:
- pass-through rate
means the percentage of change of the market interest rate that an institution assigns to a deposit to maintain the same level of stable deposits under the interest rates prevailing at the time of applying the standardised methodology for the slotting of the notional repricing cash flows;
- reference term
means the period in reference to which an instrument reprices.
- repricing date
means the date at which a notional repricing cash flow occurs;
- retail deposit
means a retail deposit as defined in Article 411, point (2), of Regulation (EU) No 575/2013;
- retail non-transactional deposit
means a retail non-maturity deposit that is not held in a transactional account or that does bear interest;
- retail transactional deposit
means either of the following:
- risk free interest rate
means, for a given currency, the interest rate which corresponds to a maturity on a yield curve that does not include instrument-specific or entity-specific credit spreads or liquidity spreads;
- stable non-maturity deposit
means the part of the non-maturity deposit that is likely to remain undrawn under the interest rates prevailing at the time of applying the standardised methodology for the slotting of the notional repricing cash flows;
- wholesale deposit
means a deposit which is not a retail deposit;