8.1.2.3.2 Legal Entity Consolidation with UA funds

Case 1: Where the UA fund has excess NSFR and legal entity has a deficit NSFR

1. The application compares the investment mandate of the fund with the RSF attribute of the legal entity. If the assets of fund are not same as that held in the bank, then no transfer will occur between the fund and the bank
2. If the above condition is met, then the below conditions need to be checked:

   Encumbered flag = ‘N’ and revised maturity <= 1 year

   If the above conditions, in step 1 and 2 are met, then the amount to be the transferred between the UA fund and the bank is calculated by using the following formula:

   Maximum Amount to be transferred to calculated as: MIN (Amount of eligible asset available in Bank, Amount equivalent to composition of UA fund)

   Note:

   Only weighted amounts are used for the calculation

   Note:

   If the NSFR ratio for the UA fund goes below 100%, then no transfer will occur between the UA fund and the bank

Case 2: Where UA fund has deficit NSFR

The deficit for the fund is met by the transfer of the excess RSF amount from the fund to the RSF amount of the bank, so that the fund achieves the minimum required NSFR ratio. The transfer shall occur even if post transfer the NSFR ratio for the bank falls below the minimum required ratio.