• IBANK Subdivision 8.4.C.8 IBANK Subdivision 8.4.C.8 Calculating total expected cash inflows — inflow rates for other cash inflows

    • IBANK 8.4.46 Treatment of operational deposits

      (1) The inflow rate for operational deposits by the firm held at other financial institutions (including deposits held at the centralised institution of a network of co-operative banks) is 0%.
      (2) Operational deposit has the same meaning as in rule 8.4.27 (6).
      Inserted by QFCRA RM/2018-2 (as from 1st May 2018).

    • IBANK 8.4.47 Treatment of net Shari'a-compliant hedging cash inflows

      (1) The inflow rate for net Shari'a-compliant hedging cash inflows is 100%.
      (2) The firm must calculate those inflows in accordance with its usual valuation methods. The inflows may be calculated on a net basis by counterparty (that is, inflows offset outflows) only if a valid master netting agreement exists.
      (3) From the calculation, the firm must exclude liquidity needs that would result from increased collateral needs because of market value movements or falls in the value of collateral lodged.
      (4) The firm must assume that an option will be exercised if it is in the money to the buyer.
      (5) If Shari'a-compliant hedging cash inflows are collateralised by HQLA, the inflows are to be calculated net of any corresponding cash or collateral outflows that would result from contractual obligations for the firm to lodge cash or collateral.
      (6) However, subrule (5) applies only if, after the collateral were received, the firm would be legally entitled and operationally able to re-hypothecate it.
      Inserted by QFCRA RM/2018-2 (as from 1st May 2018).

    • IBANK 8.4.48 Treatment of other contractual inflows

      (1) The inflow rates for other contractual inflows are as set out in table 8.4.48.

      Table 8.4.48 Other contractual inflows — inflow rates

      Item Source of inflow Inflow rate (%)
      1 Amounts to be received from retail counterparties 50
      2 Amounts to be received from non-financial wholesale counterparties 50
      3 Amounts to be received from financial institutions and central banks 100
      4 Other contractual cash inflows 100
      (2) The firm must assume that inflows will be received at the latest possible date, based on the contractual rights available to counterparties.
      (3) The following inflows are not to be included:
      (a) inflows (except for minimum payments of principal, fee or profit) from loans that have no specific maturity;
      (b) inflows related to non-financial revenues.
      Inserted by QFCRA RM/2018-2 (as from 1st May 2018).