Secured Wholesale Funding
C 33/2015 GUI Effective from 1/12/2015- 121) Wholesale funding, that is secured by giving rights to an asset in insolvency, are assumed to be relatively more stable as the counterparts are likely to renew the funding upon maturity in a stress given the more secured position they enjoy.
- 122) It is important to note that the stability of this funding source depends on the quality of the asset pledged as collateral. The below table shows the run off assumptions applied to wholesale deposits depending on the type of Collateral used.
Table 4 Collateral for maturing wholesale funding
| Collateral securing the maturing wholesale funding | Run off Factor |
|---|---|
| Level 1 Liquid Asset | 0% |
| Level 2A Liquid Assets | 15% |
Transactions with sovereigns, central banks, PSEs, GREs that are not backed by Level 1 or Level 2A assets. (PSEs and GREs that receive this treatment should have a risk weight of 20% or lower under Basel II Standardized approach). | 25% |
| Level 2B assets | 50% |
| All other types of collateral | 100% |