4.3.7.2 Treatment of Lien Marked Deposits

When all the guideline conditions are satisfied, the encumbered portion of lien-marked deposits are excluded and receives a 0% factor. The unencumbered portion of the lien marked deposits is included and receives an appropriate run-off rate as applicable.

To cater to lien marked deposits, the following based measures are used in the business assumptions.

• Unencumbered Stable Balance: This measure populates the portion of a stable amount, which is unencumbered.
• Unencumbered Less Stable Balance: This measure populates the portion of the less stable amount, which is unencumbered.
• Encumbered Balance: This measure populates the encumbered amount of the deposit.

See Regulations Addressed through Business Assumptions for details of the preseeded assumptions on lien marked deposits.