layouttitleschemas
propertypurposeaccount,loan,security,derivative,derivative_cash_flow

purpose


The purpose property describes the reason behind the creation or usage of the financial product or account as seen from the point of view of the firm.

Account

├── admin
├── cash_management
├── cf_hedge
├── ci_service
├── collateral
├── commitments
├── clearing
├── critical_service
├── custody
├── deposit
├── depreciation
├── dividend
├── employee
├── fees
├── firm_operating_expenses
├── fx
├── interest
├── ips
├── operational
├── other
├── pension
├── prime_brokerage
├── ppe
├── goodwill
├── property
│   ├── investment_property
│   └── own_property
├── reference
├── reg_loss
├── restructuring
├── revenue_reserve
├── share_plan
├── staff
├── system
└── tax

deposit

The deposit enum value refers to a retail deposit defined in accordance with Article 411 of the CRR:

A liability to a natural person or to an SME, where the natural person or the SME would qualify for the retail exposure class under the Standardised or IRB approaches for credit risk, or a liability to a company which is eligible for the treatment set out in Article 153(4) and where the aggregate deposits by all such enterprises on a group basis do not exceed EUR 1 million.

ci_service

The ci_service enum value refers to accounts covered by central institution services or held within a cooperative network.

Opening paragraph 12 of the LCR states that liquidity calculations should take into account:

centralised management of liquidity in cooperative and institutional protection scheme networks where the central institution or body plays a role akin to a central bank because the members of the network do not typically have direct access to the latter. Appropriate rules should, therefore, recognise as liquid assets the sight deposits which are made by the members of the network with the central institution and other liquidity funding available to those from the central institution.

Assets placed as a ci_service should be considered unencumbered inaccordance with Artcle 7.2(a) of the LCR:

assets included in a pool which are available for immediate use as collateral to obtain additional funding under committed but not yet funded credit lines available to the credit institution. This shall include assets placed by a credit institution with the central institution in a cooperative network or institutional protection scheme.

collateral

The collateral enum type identifies an account or deposit received as collateral and hence, not classified as a liability for the purposes of Article 27 and 29 of the LCR. Collateral held in an account should have a corresponding id in the collateral schema

ips

needs definition

escrow

needs definition

operational_escrow

needs definition

clearing

The clearing enum value indicates that the account or deposit is being maintained for clearing, settlement, custody or cash management services in the context of an operational relationship and hence can be treated as a very short term exposure.

Clearing and comparable services from the CRR Article 422.4:

Clearing, custody or cash management or other comparable services referred to in points (a) and (d) of paragraph 3 only covers such services to the extent that they are rendered in the context of an established relationship on which the depositor has substantial dependency. They shall not merely consist in correspondent banking or prime brokerage services and the institution shall have evidence that the client is unable to withdraw amounts legally due over a 30 day horizon without compromising its operational functioning.

operational

Operational deposit from the CRR Article 27.6:

  1. In order to identify the deposits referred to in point (c) of paragraph 1, a credit institution shall consider that there is an established operational relationship with a non-financial customer, excluding term deposits, savings deposits and brokered deposits, where all of the following criteria are met: (a) the remuneration of the account is priced at least 5 basis points below the prevailing rate for wholesale deposits with comparable characteristics, but need not be negative; (b) the deposit is held in specifically designated accounts and priced without creating economic incentives for the depositor to maintain funds in the deposit in excess of what is needed for the operational relationship; (c) material transactions are credited and debited on a frequent basis on the account considered; (d) one of the following criteria is met: (i) the relationship with the depositor has existed for at least 24 months; (ii) the deposit is used for a minimum of 2 active services. These services may include direct or indirect access to national or international payment services, security trading or depository services. Only that part of the deposit which is necessary to make use of the service of which the deposit is a by-product shall be treated as an operational deposit. The excess shall be treated as non-operational.

custody

As opposed to short-term definition within operational, custody here refers to the long-term custody of financial assets such as those held for safekeeping by a custodian bank.

prime_brokerage

Describes an account held for prime brokerage reasons but not including those contained above for operational reasons. These accounts are used for prime brokerage service transactions which are in essence investment activities including securities lending, leveraged trade executions and cash management, among other things.

investment property

IAS 40.5 defines investment property as:

property (land or a building - or part of a building - or both) held (by the owner or by the lessee as a right-of-use asset) to earn rentals or for capital appreciation or both, rather than for: (a) use in the production or supply of goods or services or for administrative purposes; or (b) sale in the ordinary course of business.

own_property

IAS 40.5 defines owner occupied property as:

property held (by the owner or by the lessee as a right-of-use asset) for use in the production or supply of goods or services or for administrative purposes.

For example, for the reporting of Notice MAS 610/1003, owner occupied property includes bank premises.

property

This refers to other immovable property not included in investment property or owner occupied property,

revenue_reserve

A type of reserve account. This is created when an entity retains an amount of its distributable profit.

share_plan

This is a reserve account where funds are held with the purpose of share plans and other equity based compensation.

reg_loss

This is a reserve that is created when an entity allocates funds to a reserve account for the purpose of complying with requirements for minimum regulatory loss allowances.

For example, MAS Notice 612 (section 6.3.7) requires locally incorporated domestic systemically important banks to maintain a minimum level of loss allowance equivalent to 1% of the gross carrying amount of selected credit exposures net of collateral. This is referred to as the Minimum Regulatory Loss Allowance. Where the entity’s Accounting Loss Allowance (calculated in accordance with the impairment requirements under FRS 109) falls below the Minimum Regulatory Loss Allowance, the entity shall maintain the difference in a non-distributable regulatory loss allowance reserve which shall be appropriated from retained earnings.

cf_hedge

IFRS 9.6.5.2 defines a cash flow hedge as follows:

a hedge of the exposure to variability in cash flows that is attributable to a particular risk associated with all, or a component of, a recognised asset or liability (such as all or some future interest payments on variable-rate debt) or a highly probable forecast transaction, and could affect profit or loss.

IFRS 9 refers to the cash flow hedge reserve as the separate equity component associated with the hedged item. In hedge accounting under IFRS, this account is a key component of the recognition of a hedging relationship.

For example, in the EBA’s FINREP F.1.3 report, the effective portion of the variation in fair value of hedging derivatives in a cash flow hedge, both for ongoing cash flow hedges and cash flow hedges that no longer apply, is reported as the cash flow hedge reserve.

fees

needs definition

pension

needs definition

restructuring

needs definition

commitments

needs definition

tax

needs definition

dividend

needs definition

interest

needs definition

fx

needs definition

admin

needs definition

staff

needs definition

goodwill

Goodwill is a type of intangible asset. IFRS3, Appendix A, defines goodwill as:

an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognised.

ppe

IAS 16(6) defines property plant and equipment as:

tangible items that: (a) are held for use in the production or supply of goods or services, for rental to others, or for administrative purposes; and (b) are expected to be used during more than one period.

depreciation

An account representing the the change in value attributable (over a period) to assets where depreciation must be accounted for.

other

The other enum value can be used when it is known that none of the other enum values apply.

Derivative

reference

Use this enumeration value to refer to derivatives which are underlyings of other derivative positions (e.g. swaptions). In the context of CRR Article 329, a reference derivative would be the underlying swap of a swaption.

cva_hedge

Use this enumeration value to refer to derivatives booked in order to hedge CVA as defined in CRR Article 386.

back_to_back

Use this enumeration value to highlight back to back trades defined as “exactly matching” in Pruval Delegated Regulation Article 4 (2)

Derivative Cash Flow

reference

Use this enumeration value to refer to derivative cash flows which are calculated in order to decompose derivatives in combinations of long and short flows. See CRR Articles 328 to 331.

Loan

├── house_purchase
├── first_time_buyer
├── bridging_loan
├── buy_to_let
│   ├── buy_to_let_house_purchase
│   ├── buy_to_let_remortgage
│   ├── buy_to_let_further_advance
│   └── buy_to_let_other
├── ips
├── lifetime_mortgage
├── promotional
├── remortgage
├── remortgage_other
├── consumer_buy_to_let
├── further_advance
└── other

house_purchase

The house_purchase value indicates that the purpose of the loan is for the purchase of residential property for occupation by the borrower.

first_time_buyer

The first_time_buyer value is a term used in the British and Irish property markets and defined in the Bank of England’s Mortgage Lending & Administration (MLAR) Definitions section E6.1/2 It is a sub-category of a house_purchase where “the tenure of the main borrower immediately before this advance was not owner-occupier.”

bridging_loan

A bridging_loan is a short-term financing option used typically used for property owners to finance the period between buying a new property and selling an old one when the timing of the two does not match. It can also be used by property developers or investors who value speed over cost.

buy_to_let

The buy_to_let value is a term used in the British property market where the borrower is purchasing the property with a view of renting it out on a commercial basis to an unrelated third party. See MLAR Definitions section E6.2.

internal_hedge

From CRR definitions (96): internal hedge means a position that materially offsets the component risk elements between a trading book and a non-trading book position or sets of positions;

ips

From CRR Article 113(7):

An institutional protection scheme is a contractual or statutory liability arrangement which protects those institutions and in particular ensures their liquidty and solvency where necessary;

lifetime_mortgage

A lifetime_mortgage is a very specific kind of British mortgage contract and is defined in the FCA Handbook. It is geared towards customers of a certain age in order to release equity and typically repayment occurs at the time of the customers death when the property is sold;

promotional

As outlined in LCR Article 31(9), a promotional loan

shall be available only to persons who are not financial customers on a non-competitive, not for profit basis in order to promote public policy objectives of the Union or that Member State’s central or regional government. It shall only be possible to draw on such facilities following the reasonably expected demand for a promotional loan and up to the amount of such demand provided there is a subsequent reporting on the use of the funds distributed;

remortgage

The remortgage value indicates a re-mortgage or refinancing of an existing property by an existing customer of the firm who had a loan with a house_purchase purpose. Note that this does not include re-mortgages of first_time_buyer and buy_to_let loans which should retain their respective purposes in the event of a re-mortgage. See MLAR Definitions section E6.4/5.

speculative_property

From CRR definitions (79):

speculative immovable property financing‧ means loans for the purposes of the acquisition of or development or construction on land in relation to immovable property, or of and in relation to such property, with the intention of reselling for profit;

remortgage_other

The remortgage_other value indicates a re-mortgage by a new customer who is refinancing a loan from another lender.

other

The other enum value can be used when none of the other enum values apply or the value is unknown.

Security

├── investment
├── collateral
│    └──  derivative_collateral
├── reference
├── share_capital
│    └──  non_controlling
├── trade_finance
├── aircraft_finance
└── other

trade_finance

From CRR definitions (80):

Trade finance means financing, including guarantees, connected to the exchange of goods and services through financial products of fixed short-term maturity, generally of less than one year, without automatic rollover;

derivative_collateral

Defined in accordance with Article 30(1) of the LCR regulation:

“collateral posted for contracts listed in Annex II of Regulation (EU) No. 575/2013 and credit derivatives”.

reference

Use this enumeration value to refer to securities which are underlyings of derivative positions (e.g. bond futures). In the context of CRR Article 328, a reference security would be the underlying bond of a bond future position.

share_capital

This indicates shares that have been issued for the purpose of raising capital for the company.

non_controlling

Commission Regulation (EC) No 494/2009 defines non-controlling interest as:

the equity in a subsidiary not attributable, directly or indirectly, to a parent.

back_to_back

Use this enumeration value to highlight back to back trades defined as “exactly matching” in Pruval Delegated Regulation Article 4 (2)