44.2 Retail/Wholesale and Transactional Non-Maturing Deposits

In the standardized approach non-maturing deposits (NMDs) must be segmented into retail and wholesale categories:

• Wholesale:

  Deposits from legal entities, sole proprietorships, or partnerships are captured in wholesale deposit categories.

• Retail:

  Retail deposits are defined as deposits placed with a bank by a person.

  Deposits made by small business customers and managed as retail exposures are considered as having similar interest rate risk characteristics to retail accounts. These are treated as retail deposits (provided the total aggregated liabilities raised from one small business customer is less than 1 million).

  Retail Non-maturing deposits can be further classified into the following categories:

  • Transactional:

    Retail deposits are considered as held in a transactional account when regular transactions are carried out in that account (such as, when salaries are regularly credited) or when the deposit is non-interest bearing.

  • Non-transactional:

    Other retail deposits are considered as held in a non-transactional account.

ALM provides the following to meet these requirements:

• Simple Customer Type dimension and attribute.
• The Retail-Wholesale Flag and Transactional Account Flag attributes for checking and savings account (CASA) and ALM account summary:
  • Retail-Wholesale Flag has two values:

    R = Retail

    W = Wholesale

  • Transactional Account Flag has two values:

    Y = Transactional

    N = Non transactional

  These attributes can be used in conditional assumptions and data filters.