Question ID:
2017_3377
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - FINREP (incl. FB&NPE)
Article:
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph:
ANNEX V
Disclose name of institution / entity:
No
Type of submitter:
Credit institution
Subject Matter:
EBA validations rules for 2.5 with reference v2708_m and v3091_ m
Question:

In accordance with Annex V.Part 2, paragraph 162 the sum of the amounts reported for both collateral and financial guarantees shall be capped at the carrying amount of the related exposure. Does the carrying amount of the related exposure refer to the gross carrying amount of the related exposure (before accumulated provisions) or to the net carrying amount (after provisions).

Background on the question:

EBA rule validations for 2.5 with reference v2708_m and v3091_ m have been reactivated on 10/03/2016 (deactivate date 17/07/2014). V2708: the amount of collateral and financial guarantee received on exposures with forbearance measures should be equal or lower Gross carrying amount of non-performing exposure minus their Accumulated impairment, accumulated changes in fair value due to credit risk and provisions V3091: the amount of collateral and financial guarantee received on exposures with forbearance measures should be equal or lower than the gross carrying amount of exposures with forbearance measures minus their Accumulated impairment, accumulated changes in fair value due to credit risk and provisions

Date of submission:
03/07/2017
Published as Final Q&A:
17/11/2017
Final Answer:

The amount of collateral and financial guarantee to be reported as received on exposures with forbearance measures in templates F 18.00 and F 19.00 of Annexes III and IV to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) should be capped at the net carrying amount of the exposure, in line with template F 13.00 of Annexes III and IV of the ITS on Supervisory Reporting referring to the maximum amount that can be considered based on IFRS 7.36 (b).

 

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