• C. Other Inflows by Counterparty

    • LM-11.4.9

      For all other types of transactions, either secured or unsecured, the bank must apply inflow rates according to the counterparty category, as explained in the following paragraphs.

      August 2018

    • LM-11.4.10

      When considering loan payments, the bank must only include inflows from fully performing loans. For revolving credit facilities, this assumes that the existing loans are rolled-over and that any remaining balances (undrawn) are treated in the same way as a committed facility according to LM-11.3.10(E).

      August 2018

    • LM-11.4.11

      Inflows from loans that have no specific maturity (i.e. have non-defined or open maturity) must not be included; therefore, no assumptions must be applied as to when maturity of such loans would occur. An exception to this would be minimum payments of principal, commission or interest associated with an open maturity financing transactions, provided that such payments are contractually due within 30 days. These minimum payment amounts must be captured as inflows at the rates prescribed in the paragraphs below (articles a. and b.).

      August 2018

    • LM-11.4.12

      Bahraini conventional bank licensees must apply the below rates to the cash inflows maturing within 30 calendar days by counterparty:

      a. Cash inflows from retail customers and small business customers: 50 percent of the contractual amount.
      b. Other wholesale inflows:
      i. 100 percent for financial institutions and central bank counterparties; and
      ii. 50 percent for non-financial wholesale counterparties.
      c. Operational deposits: Deposits held at other financial institutions for operational purposes will receive a 0 percent inflow rate.
      August 2018

    • LM-11.4.13

      Inflows from securities maturing within 30 days not included in the stock of HQLA must be treated in the same category as inflows from financial institutions (i.e. 100 percent inflow). Bahraini conventional bank licensees may also recognize in this category inflows from the release of balances held in segregated accounts in accordance with regulatory requirements for the protection of customer trading assets, provided that these segregated balances are maintained in HQLA. Liquid assets from level 1 and level 2 securities maturing within 30 days must be included as HQLA, provided that they meet all operational and definitional requirements, as laid out in LM-11.2.

      August 2018