# Commission Implementing Regulation (EU) 2018/1624 of 23 October 2018 laying down implementing technical standards with regard to procedures and standard forms and templates for the provision of information for the purposes of resolution plans for credit institutions and investment firms pursuant to Directive 2014/59/EU of the European Parliament and of the Council, and repealing Commission Implementing Regulation (EU) 2016/1066 (Text with EEA relevance), Division II.7.1: General remarks Extent: E+W+S+N.I. Directive (EU) 2015/2366 of the European Parliament and of the Council of 25 November 2015 on payment services in the internal market, amending Directives 2002/65/EC, 2009/110/EC and 2013/36/EU and Regulation (EU) No 1093/2010, and repealing Directive 2007/64/EC (OJ L 337, 23.12.2015, p. 35). Regulation (EU) No 648/2012 of the European Parliament and of the Council of 4 July 2012 on OTC derivatives, central counterparties and trade repositories (OJ L 201, 27.7.2012, p. 1). Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (OJ L 173, 12.6.2014, p. 349). ID Economic function Deposits Deposit taking shall refer to the acceptance of deposits from non-financial intermediaries. It does not include borrowing from other financial intermediaries, which is dealt with separately in ‘wholesale funding’. Deposits include: i) current accounts/overnight deposits, ii) deposits with agreed maturity, and iii) deposits redeemable at notice, and exclude repurchase agreements. References: FSB Guidance on Identification of Critical Functions and Critical Shared Services (2013) p. 14; Annex II Part 2 items 9.1, 9.2 and 9.3 of Regulation (EU) No 1071/2013. 1.1 Households 1.2 Non-financial corporations (SMEs) 1.3 Non-financial corporations (non-SMEs) 1.4 General governments 1.5, 1.6, 1.7 Other sectors/counterparties (1), (2) and (3) Lending Lending shall refer to the provision of funds to non-financial counterparties, such as corporate or retail clients. Lending to financial counterparties is a distinct activity and is assessed in ‘wholesale funding’. Loans includes debt instruments held by the institutions but exclude debt instruments that are securities, irrespective of their accounting classification (e.g. held-to-maturity or available for sale). References: FSB Guidance on Identification of Critical Functions and Critical Shared Services (2013) p. 17; Annex II Part 2 item 2 of Regulation (EU) No 1071/2013. 2.1 Households – Lending for house purchase Lending for house purchase means loans extended to households for the purpose of investing in houses for own use and rental, including building and refurbishments. 2.2 Households – other lending 2.3 Non-financial corporations — SMEs 2.4 Non-financial corporations — non-SMEs 2.5 General Governments 2.6, 2.7, 2.8 Other sectors/counterparties (1), (2) and (3) Payments, Cash, Settlement, Clearing, Custody services Reference: FSB Guidance on Identification of Critical Functions and Critical Shared Services (2013) p. 20. The economic functions included under this caption shall consist of the provision of payments, cash, settlement, clearing and custody services by a credit institution, as an intermediary between own clients or as an intermediary between a client and one or several relevant Financial Market Infrastructures (FMIs), or the provision of (indirect) access to FMIs to other banks. In line with FSB Guidance on Identification of Critical Functions and Critical Shared Services, the payments, clearing and settlement function is limited to services provided by banks to their clients. This category does not cover services provided by (pure) FMI providers. For the purpose of this template, FMIs include payment systems, securities settlement systems, central securities depositories and central counterparties (and do not include trade repositories). Payment service', ‘payment transaction’ and ‘payment system’ have the same meaning as defined in Article 4(3), (5) and (7), respectively, of DIRECTIVE 2015/2366 on payment services in the internal market. 3.1 Payment services to MFIs This row shall include payment services offered to Monetary Financial Institutions (MFIs), with or without use of external payment systems. This shall also include (payments related to) correspondent banking services. MFIs shall consist of all institutional units included in the sub-sectors: i) central bank; ii) deposit-taking corporations except the central bank; and iii) money market funds. 3.2 Payment services to non-MFIs Payment services offered to clients, with or without use of external payment systems. This shall only include natural or legal person who do not belong to the MFIs sector. Payment services providers are also excluded from the ‘non-MFIs’ sector. 3.3 Cash services Provision of cash services to clients (both individuals and corporates, only non-MFIs). These services refer to withdrawals at ATMs and at branches counters and do not include other cash services (like cash-in-transit services for mass retailers). Cash withdrawal with cheques and at branches counters using bank forms (where cards may be used as identification means) are included. 3.4 Securities settlement services Services offered to clients for confirmation, clearing and settlement of securities transactions, with or without use of securities settlement systems. ‘Settlement’ means the completion of a securities transaction where it is concluded with the aim of discharging the obligations of the parties to that transaction through the transfer of cash and/or securities. 3.5 CCP clearing services Securities and derivatives clearing services provided to clients. This also includes the provision of indirect access to a Central Counterparty (CCP). 3.6 Custody services Safekeeping and administration of financial instruments for clients and services related to custodianship such as cash and collateral management. 3.7, 3.8, 3.9 Other services/activities/functions (1), (2) and (3) Capital Markets Capital markets activities shall refer to the issuance and trading of securities, related advisory services, and related services such as prime brokerage and market making. 4.1 Derivatives held for trading (OTC) Article 2(5) and (7) of REGULATION (EU) No 648/2012. A derivative or derivative contract means a financial instrument as set out in points (4) to (10) of Section C of Annex I to DIRECTIVE 2014/65/EU as implemented by Article 38 and 39 of REGULATION (EC) No 1287/2006. An OTC derivative or OTC derivative contract means a derivative contract the execution of which does not take place on a regulated market within the meaning of Article 4(1)(21) of DIRECTIVE 2014/65/EU or on a third-country market considered to be equivalent to a regulated market in accordance with Article 2a of REGULATION (EU) No 648/2012. The amount to be reported shall only include derivatives traded in the OTC market. 4.2 Derivatives held for trading (non-OTC) All derivatives held for trading, excluding OTC derivatives held for trading. 4.3 Secondary markets/Trading: The secondary market is where investors buy and sell securities. This function applies to the total trading portfolio (i.e. equity, corporate credit, sovereign credit). The amount to be reported shall include value of securities measured as the total amount of securities in the held-for-trading. Securities shall be reported at fair value at the reporting date. The amount shall not include loans, derivatives and non-tradable assets (e.g. receivables). 4.4 Primary markets/underwriting Primary markets shall mean where new securities are issued on an exchange by companies, governments, and other groups in order to obtain financing through debt-based or equity-based securities (like common and preferred stock, corporate bonds, notes, bills, government bonds). Primary markets are facilitated by underwriting groups. 4.5, 4.6, 4.7 Other services/activities/functions (1), (2) and (3) Wholesale Funding Lending and borrowing activities in wholesale markets to and from financial counterparties (credit institutions and other financial corporations). 5.1 Borrowing Borrowing in wholesale markets from financial counterparties (including by way of repurchase agreements, interbank borrowing, commercial paper, certificate of deposits, money market funds, lines of credit, asset-backed commercial paper and fiduciary deposits). 5.2 Derivatives (assets) All derivatives with financial counterparties held on the asset side of the balance sheet. In contrast to ‘Capital markets’, in ‘Wholesale Funding’, derivatives include all derivatives contracts with financial counterparties (not limited to HFT). 5.3 Lending Lending in wholesale markets to financial counterparties (including by way of reverse repurchase loans, commercial paper, certificate of deposits, money market funds, lines of credit, asset backed commercial paper, fiduciary deposits). 5.4 Derivatives (liabilities) All derivatives with financial counterparties held on the liability side of the balance sheet. 5.5, 5.6, 5.7 Other product types (1), (2) and (3) Any function of the economic function ‘Wholesale funding’ which is not included in the above. --- Source: https://www.legislation.gov.uk/eur/2018/1624/annex/II/division/II/division/II.7/division/II.7.1 (the official version) Page: https://openlegislation.uk/eu-regulation-2018-1624/annex-II/division-II/division-II.7/division-II.7.1 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.