4.2.8 Treating 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.

Outflow factors as for other products and dimensional combinations are defined in the form of business assumptions. To cater to lien marked deposits, the following new based measures are introduced in the business assumptions.

• Unencumbered Stable Balance: This measure populates the minimum of unencumbered amount and stable amount.
• Unencumbered less Stable Balance: This measure populates the minimum of unencumbered amount and less stable amount.
• Encumbered Balance: This measure populates the encumbered amount of the deposit.

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