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Cash Inflows

C 33/2015 GUI Effective from 1/12/2015

Cash Inflows – 100% in the normal course of business inflows with a cap of 75% of outflows

  1. 133) Contractual cash inflows from assets that are expected to come in within the 30 day stress period under normal business conditions (see details below) are allowed to be included in the LCR up to 75% of cash outflows (see paragraph 93).
  2. 134) Cash inflows from the principal and interest repayment of loans and advances to retail, SMEs and non-financial corporates are included at 50% cash inflow. This assumes that the bank will continue to extend new loans at 50% of the contractual inflows. However, because of the self-liquidating nature of trade finance transactions these may be included as a 100% cash inflow provided there is no obligation on the bank to extend further credit to the customer once the transaction has been settled. The bank must prove to the Central Bank’s satisfaction that it has exercised this option before applying the 100%.
  3. 135) No Credit card and overdraft repayments are allowed as a cash inflow.
  4. 136) Contractual cash inflows that are generated from financial institutions maturing within 30 days are assumed to be received in full (100% inflow). Similarly, all debt instruments that are maturing within the 30 day period will receive 100% cash inflow.
  5. 137) No lines of credit, liquidity facilities, and contingent funding facilities given to the bank are allowed to be included in the cash flows (0% inflow).
  6. 138) Derivative cash flows can be shown as 100% of all the net cash inflows. The methodology is the same as for outflows.
  7. 139) No operational deposits made to financial institutions should be allowed as a cash inflow (0% cash inflow).

    Maturing secured lending transactions-Run offs depending on quality of collateral
  8. 140) Transactions backed by Level 1 assets 0% inflow
  9. 141) Transactions secured by Level 2A assets 15% inflow (0% if the collateral is used to cover a short position)
  10. 142) Margin lending backed by all other collateral (including Level2B assets) 50% inflow (0% if the collateral is used to cover a short position)
  11. 143) Transactions backed by other collateral 100% inflow (0% if the collateral is used to cover a short position)