Article 5
Stress scenarios for the purposes of the liquidity coverage ratio
The following scenarios may be regarded as indicators of circumstances in which a credit institution may be considered as being subject to stress:
(a)
the run-off of a significant proportion of its retail deposits;
(b)
a partial or total loss of unsecured wholesale funding capacity, including wholesale deposits and other sources of contingent funding such as received committed or uncommitted liquidity or credit lines;
(c)
a partial or total loss of secured, short-term funding;
(d)
additional liquidity outflows as a result of a credit rating downgrade of up to three notches;
(e)
increased market volatility affecting the value of collateral or its quality or creating additional collateral needs;
(f)
unscheduled draws on liquidity and credit facilities;
(g)
potential obligation to buy-back debt or to honour non-contractual obligations.