82. Treatment of retail term deposits of more than 30 days (LCR, Basel III)

Definition

Cash outflows related to retail term deposits with a residual maturity or withdrawal notice period of greater than 30 days will be excluded from total expected cash outflows if the depositor has no legal right to withdraw deposits within the 30-day horizon of the LCR, or if early withdrawal results in a significant penalty that is materially greater than the loss of interest.(38)

Additional information:

(38) If a portion of the term deposit can be withdrawn without incurring such a penalty, only that portion should be treated as a demand deposit. The remaining balance of the deposit should be treated as a term deposit.

Related terms:

Parent term:

(b) Less stable deposits (run-off rates = 10% and higher) (LCR, Basel III)

Sibling terms:

79. Less stable deposits description (LCR, Basel III)
80. Default categoriastion of less stable deposits (LCR, Basel III)
81. Less stable deposits in foreign currency (LCR, Basel III)
83. Treatment of retail term deposits with no withdrawal restriction (LCR, Basel III)
84. Application of different run-off rates to certain retail term deposits (LCR, Basel III)