Bank deposits that are made available to banks for a limited period of at least thirty days. – In the course of Basel II, these core deposits – also known in German as “Core Deposits” – were the subject of lengthy discussions for regulatory purposes because, according to hedge accounting rules, they may not be used to hedge longer-term asset transactions. The International Accounting Standards Board (IASB) referred to the possibility of deducting such deposits at any time as justification for this. In practice, this is countered by the so-called core deposit theory. According to this theory, core deposits have a longer retention period in the bank balance sheet than their contractual maturity. – As part of its fine-tuning operations, the ECB can, via quick tenders or bilateral operations, take term deposits from banks at any time for a certain period of time at conditions favorable to the banks. – See Core, Maturity transformation, Withdrawal, IAS 39. – See the breakdown of time deposits by depositor in the annex “Euro area statistics,” section “Monetary developments, banks and investment funds” in the respective ECB Monthly Bulletin.
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