4.3.5 Classifying Operational Account

Operational deposits are those deposits placed by customers with a bank or balances kept by the bank with other financial institutions to meet their payment and settlement needs and other operational requirements. The application classifies accounts as operational if they meet the following criteria:

1. They are held in specifically designated accounts, which is held as operational accounts, at or with the depositing institution.
2. They arise out of a 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 must pay significant switching or termination costs to the depositing institution.