15.2.2.6 Classifying Operational Account

Operational deposits are those deposits placed by customers with a bank in order to meet their payment and settlement needs and make other payments. The application classifies accounts as operational if they meet the following criteria:

1. They are held in specifically designated accounts, i.e. held as operational accounts, by the customers at the bank.
2. They arise out clearing, custody or cash management relationship with the bank.
3. They do not arise out of correspondent banking services or in the context of prime brokerage services.
4. The termination of such agreements requires a minimum notice period of 30 days.
5. If the agreement can be terminated within 30 days, the customer has to pay significant switching or termination costs to the bank.