2019_4628 Upside uncertainty and OPR AVA | European Banking Authority

Question ID:

2019_4628

Legal Act:

Regulation (EU) No 575/2013 (CRR)

Topic:

Supervisory reporting - COREP (incl. IP Losses)

Article:

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

Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)

Article/Paragraph:

Reporting framework 2.8 Annex 1 Template 32.2

Disclose name of institution / entity:

Type of submitter:

Credit institution

Subject Matter:

Upside uncertainty and OPR AVA

Question:

How shall OPR AVA be treated in relation to Upside uncertainty?

Background on the question:

The upside uncertainty explanation - 'The upside uncertainty shall be calculated and aggregated on the same basis as the total AVA computed in column 0110, but substituting a 10% level of certainty for the 90% used when determining the total AVA (cp. Art. 8(2) of the Delegated Regulation).' seems to be problematic for the calculation of OPR AVA for institutions that does not have an AMA model. Theoretically it is hard to imagine in which cases there is an upside potential of operational risk.

Date of submission:

27/03/2019

Published as Rejected Q&A

20/01/2022

Rationale for rejection:

This question has been rejected because the matter it refers to has already been identified and will be considered for a forthcoming version of the Reporting framework and release of the respective validation rules.

For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.

Status:

Rejected question