News & Press
Banks remain robust but higher interest rates could impact their asset quality, the EBA finds
The European Banking Authority (EBA) today published its Q3 2023 quarterly Risk Dashboard (RDB) together with the Risk Assessment Questionnaire (RAQ). The publication also includes information on minimum requirement for own funds and eligible liabilities (MREL). EU/EEA’s banks remained highly profitable, well capitalised and maintained robust liquidity. Banks expect the asset quality to deteriorate as higher interest rates affect borrowers.
The EBA issues Opinion to Latvijas Banka on a measure adjusting the risk weight for commercial immovable property
The European Banking Authority (EBA) today published an Opinion following notification by Latvijas Banka, the central bank of Latvia, of its intention to adjust the risk weight for exposures secured by mortgages on commercial immovable property. The measure aims to limit risks associated with commercial immovable property. Based on the information provided, the EBA does not object to the risk weight adjustment.
Final Q&As
Question ID: 2023_6770
- May Article 500a be applied to exposure types other than government bond?
- May Article 500a paragraph 1 also be applied to indirect exposures, when the obligor is classified different from central governments or central banks? If so, the currency constraints imposed by the article 500a have to be referred to the unfunded credit protection of a central governments or central banks?
Question ID: 2023_6774
Shall the transferor of an operation like the one described below include for credit risk capital requirements purposes both the exposure value of the securities sold (asset item) and the financing position (even if it is a liability item), or just the asset item of the securities sold?
According to Article 111(2) CRR the exposure value of any repurchase transaction shall be included and be calculated either in accordance with Chapter 4 or Chapter 6 of Title II: does it also refers to the financing position of the transferor (even if it is a liability item)?
What is the correct treatment for the financing position of the transferor? are securities also to be included as an exposure value in case the Financial Collateral Simple Method is used?
Question ID: 2023_6886
Does the upfront deduction under Article 28(2) of Commission Delegated Regulation (EU) No 241/2014 as specified by Q&A 3277 include in addition to CET1 instruments and related share premium accounts also the other CET1 items that are reduced by a share buyback program authorized pursuant to Article 78(1)(b) CRR?
Question ID: 2023_6887
How and when should the share buyback ordinary component of an adopted profit distribution policy be reflected in the CET1 capital of institutions?
Question ID: 2023_6932
Can the Share Premium be recognised as CET1 capital if there are features preventing its use to absorb losses?