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Q&As refer to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.

Please note that the Q&As related to the supervisory benchmarking exercises have been moved to the dedicated handbook page. You can submit Q&As on this topic here.

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List of Q&A's

Relevant time period to determine default rate and loss rate

Is it correct that the default rate and the loss rate for each rating grade has to be calculated based on the defaults of assets which belonged to the respective rating grade one year before the reference date (see description of c190), whereas the exposure value (110), LGD (130) , RWA (170) etc. have to be reported for the reference date? Would it not be more reasonable to report the default rate and the loss rate for the year after the reference date?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2015_2534
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Market Risk Netting Under Article 331 (2)

Does Article 331(2) apply to both notional positions produced from a futures contract as per Articles 328 or just to the positions created in the underlying instrument, or just to the position created in a notional instrument that matures on the delivery date of the futures contract? For example a bond future produces both a notional position in a deliverable bond and a notional position for the cash movement at the future expiry.a) Does Article 331(2) apply to both of these notional positions, or just to the notional position created in the deliverable bond, or just to the notional position created for the cash movement at the future expiry?b) Please confirm if the notional position created in the deliverable bond should be included in a net bond position calculation under Article 327(1), and excluded from netting under Article 331(2), while the notional position created for the cash movement should be excluded from Article 327(1) and included in Article 331(2) netting with only other cash movement notional positions.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2533
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Calculation of the value of exposures resulting from the settlement of debt instruments and equities processed through a delivery-versus-payment (DvP) mechanism.

1. Can it be understood that exposures arising from the settlement of debt instruments and equities, both to the client and the CCP, do not have a capital requirement under Pillar 1, which seems to be the proposed treatment under Basel II (paragraph 89). 2. As for Article 390, 6, b do the exposures mentioned in question 1 fall outside large exposure calculations, regardless of being to the client or to the CCP? 3. Since the settlement of debt instruments and equities seams to falls out of the scope CRR’s own funds requirements for exposures to CCP’s, what is the corresponding treatment (for both own funds and large exposure calculations) for collateral posted and contributions to the default fund of a CCP for such instruments? 4. Should collateral posted as required by the CCP to the General Clearing Member but deriving from transactions with their non-clearing members be considered as an exposure to the clients? If so, the treatment would be such as in questions 1 and 2 for capital and large exposures calculation purposes?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2532
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Deposits by Financial Customers

Do deposits from Financial Customers with a remaining maturity of more than 30 days qualify for a 100% outflow rate for LCR purposes or shall they be excluded from calculation? (e.g. a 3 months unsecured deposit from an investment firm).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
  • ID: 2015_2529
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Special manager as insolvency manager

Must national courts adhere to the resolution authority’s decision that a special manager should also be insolvency manager?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2523
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Prior state aid approval when using resolution tools

Does the use of resolution tools require a prior state aid approval?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2522
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 10/03/2017

References to shareholders in Article 34 (and 44)

Are holders of Common Equity Tier 1 (CET1) only to be considered shareholders?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2521
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Determination of exhaustion of supervisory action by the resolution authority

How can the resolution authority determine in the context of the determination that an institution is failing or likely to fail that supervisory action(s) by the competent authority has / have been exhausted and would not prevent the failure of the institution within a reasonable timeframe?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2519
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Application of tools

Does the Commission agree that the Directive must be interpreted in such a way that that the resolution authority should have all the tools available for all institutions so that they can be used depending on the situation, and that it cannot be determined by national legislation, that certain tools (e.g. bail-in) should always be used for the smallest institutions whereas other tools can be applied for SIFIs?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2518
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Additional implementation to Article 27(1)(d)

What additional implementation to that required for Article 27(1)(d) of Directive 2014/59/EU (BRRD) is expected in the light of Article 28, and if so, how can any difference be implemented in compatibly with the European Convention on Human Rights?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2517
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Relation between precautionary recapitalisation and early intervention measures

What is the relation between precautionary recapitalisation and early intervention measures in case an institution would have to raise its capital base following the negative outcome of stress test?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2516
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 28/01/2022

Notification requirements in the context of financial support

What does is the scope of the obligations imposed by Articles 25 (1) and 25 (6) of Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2515
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 28/01/2022

References to “the group” in Articles 6 (2) and (5)

Why do Articles 6 (2) and (5) of Directive 2014/59/EU (BRRD) make reference to “the group” althugh the assessment of group recovery plans is covered under Article 8?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2514
  • Topic: Recovery plans
  • Date of submission:
  • Published as final Q&A: 28/01/2022

Calculation of ELGD under the Supervisory Formula Method in case of a re-securitisation

In case of a re-securitisation, in order to calculate the value for ELGD under the Supervisory Formula Method, shall an LGD of 100 % only be applied to those securitised exposures that are securitisation positions or to all securitised exposures where all securitised exposures are to be treated under the Internal Ratings Based Approach (IRBA)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2508
  • Topic: Securitisation and Covered Bonds
  • Date of submission:

Definition of the target level for national resolution systems since 2016

How should national resolution authorities continue calculating the ex-ante contributions of investment firms that do not fall in the scope of Commission Delegated Regulation (EU) 2015/63?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2015_2507
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Can multiple exemptions be applied to an exposure at the same time?

This question relates to the application of multiple exemptions from article 400 (2) CRR in specific cases. As stated in article 400 (2) CRR „competent authorities may fully or partially exempt exposures“. Which exemption should be applied to an exposure if it falls under the incidence of more than one of the partial exemptions from article 400 (2) CRR? We would like to give an example related to this question. In Germany, a partial exemption of 75% may be applied according to article 400 (2) c) CRR for exposures, excluding participations or other kinds of holdings, incurred by an institution to its parent undertaking, to other subsidiaries of that parent undertaking or to its own subsidiaries, in so far as those undertakings are covered by the supervision on a consolidated basis to which the institution itself is subject, in accordance with this Regulation, Directive 2002/87/EC or with equivalent standards in force in a third country. Furthermore, according to article 400 (2) i) CRR an exemption of 50% may be applied to medium/low risk off-balance sheet undrawn credit facilities referred to in Annex I.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2506
  • Topic: Large exposures
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

RWA Standardised calculation

Could you confirm if RWA Standardised (field c180 of template C103, Annex III) is out of scope until 1.1.2017?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2015_2505
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Template 105.01 filling for LDPs

Should the template 105.01 be filled also for LDPs?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2015_2503
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as final Q&A: 24/06/2016

‘Mortgages’ identification

Are "commercial mortgages" and "other mortgages" excluded from HDPs perimeter?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2015_2501
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Rows 660 – 770 of the template C 60.00 of Annex XII of the ITS on supervisory reporting do not seem to be feasible for the reporting of equities if these are considered as liquid assets. After the application of the LCR Delegated act some equities are considered as level 2B liquid assets. Therefore a solution is needed on where to report these assets in this template.

Where should equities, when considered as level 2B liquid assets, be reported in the template C 60.00 of Annex XII of the ITS on supervisory reporting?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2500
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016