Question ID:
2013_124
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - FINREP (incl. FB&NPE)
Article:
99
Paragraph:
2
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph:
Annex III, F07.00, r270 & r280
Disclose name of institution / entity:
Yes
Name of institution / submitter:
The Danish Bankers Association
Country of incorporation / residence:
Denmark
Type of submitter:
Industry association
Subject Matter:
FINREP - template F. Loans and advances by product, by collateral and by subordination
Question:

How shall breakdown of loans according to product, collateral and subordination be reported if collateral information is not available to together with product?

Background on the question:

Typically collateral is not received for specific products or facilities but for the entire borrower exposure. Thus, it is associated with significant uncertainty to allocate collateral values to different products.

Date of submission:
06/08/2013
Published as Final Q&A:
14/02/2014
EBA Answer:

In F 07.00, there is no exception for collateral referred to the whole borrower exposure. If that were the case and it was not possible to identify the collateral on an individual basis as requested by F07.00, the reporting institution might use an allocation rate. This could be a percentage of entire collateralised borrower exposure.

The use of an allocation rate is only envisaged when the reporting entity cannot obtain the information separately and in no case is a general treatment to be used widely.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
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