2014_1106 Non-performing exposures - Cash balances at central banks, Non-current assets held for sale

Question ID:

2014_1106

Legal Act:

Regulation (EU) No 575/2013 (CRR)

Topic:

Supervisory reporting - FINREP (incl. FB&NPE)

Article:

COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:

Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)

Article/Paragraph:

Annex III and Annex IV F18.00, Annex V, Part 2, paragraph 149

Disclose name of institution / entity:

Type of submitter:

Competent authority

Subject Matter:

Non-performing exposures - Cash balances at central banks, Non-current assets held for sale

Question:

Does template F18.00 DEBT INSTRUMENTS AT AMORTISED COST (rows 010 to 180) include Cash and cash balances at central banks portfolio? Does template F18.00 DEBT INSTRUMENTS AT FAIR VALUE other than HFT (rows 190 to 320) include Non-current assets and disposal groups classified as held for sale?

Background on the question:

FINREP reporting treats cash and cash balances at central banks as a separate portfolio. Cash balances at central banks and other demand deposits are also included in definition of "loans and advances". Definition of non-performing exposures covers all loans and advances, excluding held for trading portfolio (Annex V, Part 2, para 149). Template F18.00 covers in rows 070 to 170 all loans and advances at amortised cost. Loans and receivables and held to maturity portfolios (breakdown in F04.04) do not include cash and cash balances at central banks since they are treated as a separate portfolio. Template F18.00 covers in rows 190 to 320 all debt instruments (loans and advances and debt securities) at fair value other than held for trading. Financial assets designated at fair value through profit or loss and available for sale financial assets do not include Non-current assets and disposal groups classified as held for sale as it is treated as a separate portfolio

Date of submission:

24/04/2014

Published as Final Q&A:

14/11/2014

Final Answer:

The definition of non-performing exposures includes "Cash balances at central banks and other demand deposits", since, although not included as a separate portfolio in Tables FINREP F 04 of Annex III and IV of Regulation (EU) No 680/2014 13 ITS on Supervisory Reporting of institutions (ITS), they are included under the definition of Loans and advances via the reference to the provisions of Annex II, Part 2 of the ECB BSI Regulation (Regulation ECB/2008/32).

Cash balances at central banks and other demand deposits have to be reported in row 070 as well as in rows 080 and 100 as appropriate of Table F 18.00 and Table F 19.00.

Non-current assets and disposal groups classified as held for sale are included in the current definition of Non-performing exposures but not reported in Table F 18.00 and Table F 19.00.

Status:

Final Q&A

Answer prepared by:

Answer prepared by the EBA.