Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Model validation
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Not applicable
Disclose name of institution / entity:
Type of submitter:
Subject Matter:
Notification to Competent Authority for the use of the adjustment referred to in Article 500 (1) CRR

Does an Institution that wants to apply the adjustment on its LGD estimates by partly or fully offsetting the effect of massive disposals of defaulted exposures on realised LGDs in line with Article 500 CRR have to notify the respective competent authority in accordance with Article 143 CRR?

Background on the question:

Since Article 500 CRR is not part of Part Three, Title II Chapter 3 CRR, it might not be clear if all requirements not explicitly derogated in Article 500 CRR apply in its use.

Date of submission:
Published as Rejected Q&A
Rationale for rejection:

Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.

If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.

For further information please refer to the press release and the updated Q&A page.

Rejected question