Division SECTION 1 Identification of certain MFIs based on principles of substitutability of deposits
United Kingdom
- 1.1Financial institutions other than credit institutions which issue financial instruments that are considered close substitutes for deposits are classified as MFIs provided that they meet the MFI definition in other respects. The classification is based on the criteria of substitutability of deposits, i.e. whether liabilities are classified as deposits, which is determined by their liquidity, combining characteristics of transferability, convertibility, certainty and marketability, and having regard, where appropriate, to their term of issue.
- 1.2For the purposes both of determining substitutability of deposits and classifying liabilities as deposits: