4.3.18 Home-Host Configuration
Home or Host Treatment applies to a group of credit institutions, which are domiciled in different regions, to apply the liquidity coverage ratio either based on home regulation or host regulation, whichever is more stringent. This treatment is applicable for Outflows as explained in the following points. The Home or Host treatment can be applied as a separate Run within the application. Under Home or Host treatment, the application evaluates and computes:
- Outflows
For each combination of dimensions related to retail and SME deposits, the Home Outflow Rate is compared to the Host Outflow Rate and the greater rate is applied.