Cash Outflows

77. The following table specifies, for each of the various categories or types of liabilities and off-balance sheet commitments, the rates at which they are expected to run off or be drawn down for the purpose of calculating the LCR.

Table 9 A - Cash Outflows
Item	Factor
A. Retail Deposits:
Demand deposit and term deposits (less than 30 days maturity):
●  Stable deposits	5%
●  Less stable retail deposits	10%
Term deposits with residual maturity greater than 30 days	0%
B. Unsecured Wholesale Funding:
Demand and term deposits (less than 30 days maturity) provided by small business customers:
●  Stable deposits	5%
●  Less stable deposits	10%
Small business customers - Term deposits with residual maturity greater than 30 days with no legal right to withdraw or a withdrawal with a significant penalty	0%
Operational deposits generated by clearing, custody and cash management activities:	25%
●  Portion covered by deposit insurance	5%
Cooperative banks in an institutional network (qualifying deposits with the centralized institution	25%
Non-financial corporates, sovereigns, central banks, multilateral development banks and PSEs: ●  If the entire amount is fully covered by a deposit protection scheme	40% 20%
Other legal entity customers	100%
C. Secured Funding:
●  Secured funding transactions with a central bank counterparty or backed by Level 1 HQLA withany	0%
counterparty
●  Secured funding transactions backed by Level 2A HQLA, with any counterparty	15%
●  Secured funding transactions backed by non-Level 1 HQLA or non- Level 2A HQLA, with domestic sovereigns, multilateral development banks, or domestic PSEs as a counterparty	25%
●Backed by RMBS eligible for inclusion in Level 2B HQLA	25%
●Backed by other Level 2B HQLA	50%
●All other secured funding transactions	100%
D. Additional Requirements:
Derivatives cash outflows	100%
Liquidity needs (e.g. collateral calls) related to financing transactions, derivatives and other contracts	100%
Market valuation changes on non-Level 1 HQLA posted collateral securing derivatives	20%
Excess collateral held by a bank related to derivative transactions that could contractually be called at any time by its counterparty	100%
Liquidity needs related to collateral contractually due from the reporting bank on derivatives transactions	100%
Increased liquidity needs related to derivative transactions that allow collateral substitution to non-HQLA assets	100%
Market valuation changes on derivatives transactions (largest absolute net 30-day collateral flows realised during the preceding 24 months)	100%
ABCP, SIVs, Conduits, etc: ●  Loss of funding on Asset Backed Securities, covered bonds and other structured financing instruments	Factor
	100%
●Loss of funding on ABCP, SIVs, SPVs, etc	100%
Undrawn committed credit and liquidity facilities: ●Credit and Liquidity Facilities: Retail and small and medium- sized enterprise clients	5%
●  Credit Facilities: Non-financial corporates, sovereigns and central banks, PSEs, MDBs	10%
●Liquidity Facilities: Non-financial corporates, sovereigns and central banks, PSEs, MDBs	30%
●  Credit and Liquidity Facilities: Banks subject to prudential supervision	40%
●Credit Facilities: Other financial institutions (include securities firms, insurance companies, fiduciaries and beneficiaries)	40%
●  Liquidity Facilities: Other financial institutions (include securities firms, insurance companies, fiduciaries and beneficiaries)	100%
●Credit and Liquidity Facilities: Other legal entity customers	100%
●Other contractual obligations to financial institutions	100%
●  Other contractual obligations to retail and non-financial corporate clients	100%
Other contingent funding obligations:	100%
● Non-contractual obligations related to potential liquidity draws from joint ventures or minority investments in entities
●  Trade finance-related obligations (including letters of credit and guarantees)	5%
●  Unconditionally revocable "uncommitted" credit and liquidity facilities	5%
●  Guarantees and letters of credit unrelated to trade finance obligations	10%
Non-contractual obligations:	20%
●  Debt-buy back requests (incl. related conduits)
●Structured products	10%
●Managed funds	10%
●Other non-contractual obligations	100%
Outstanding debt securities with remaining maturity > 30 days	100%
Non contractual obligations where customer short positions are covered by other customers’ collateral	50%
Other contractual cash outflows	100%

78. The following paragraphs set out the AFSA’s views about how the table above defining the treatment of various cash outflows should be applied to different items.