8.1.3 Identification of Deposit Stability

After the insurance limit is allocated at an account level, the application determines the deposit stability as follows:

1. Stable Deposits
   A Stable Deposit is the portion of a deposit which is fully covered by deposit insurance provided by an effective deposit insurance scheme or a public guarantee that provides equivalent protection and which satisfies one of the following condition:

   • It is held in a transactional account by the Depositor

     OR

   • The Depositor has an established relationship with the reporting legal entity.

   For Monetary Authority of Singapore (MAS), if a deposit is partially covered by insurance and meets the other criteria, the insured portion of such deposits is considered stable while the uninsured portion is considered less stable.

   Stable deposits receive a 5% run-off rate unless they meet additional deposit criteria.

2. Highly Stable Deposits

   All “stable” deposits identified as per the criteria specified in point 1 above are classified as meeting additional insurance criteria if the insurance scheme under which they are covered satisfies the following conditions:

   • It is based on a system of prefunding through the periodic collection of levies on banks with insured deposits.
   • Has adequate means of ensuring ready access to additional funding in the event of a large call on its reserves, for example, an explicit and legally binding guarantee from the government, or a standing authority to borrow from the government.
   • Access to insured deposits is available to depositors in a short period of time once the deposit insurance scheme is triggered.

   Such deposits receive a 3% run-off rate.

3. Less Stable Deposits

   All insured and uninsured deposit or funding balances that do not meet the stable deposits criteria specified earlier are classified as less stable deposits: This includes:

   • Insured balance of deposits meeting stable deposits criteria but denominated in ineligible foreign currencies.
   • Uninsured balance of deposits meeting stable deposits criteria.
   • Insured balance of deposits which are not transactional accounts and the customer has no established relationship with the bank.
   • Deposit balance where the insurance coverage status is Uninsured.

Such deposits receive a 10% run-off rate.