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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

Deduction from CET1 of significant holdings in financial sector entities (FSE) and protection acquired to limit downside investment exposure

Will the hedge with the 3rd party as described in the example in the background result in the deduction from CET1 (as per Article 36 CRR) being reduced from €750m to €250m?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3132
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 21/04/2017

Speculative immovable property financing

Should the loans that banks grants to build a first home, as a part of the normal business process, where the repayment of the financing comes from the sale of the property to the first buyer, without a speculative purpose of resale, and on the basis of the credit risk valuation of the borrower’s financial strength, be considered as speculative immovable property financing under Article 4(1)(79) CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3131
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 30/06/2017

Outflows associated with Payment Institutions' escrow accounts

Can the escrow accounts held for Payment Institutions be considered as operational deposits ?

  • 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: 2017_3129
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 12/05/2017

Treatment of interest outflows for retail deposits

Should interest be reported - together with the deposit amount and be subject to the treatment provided by Articles 24/25 or - separately and be subject to the treatment provided by Article 31(10) a(1)  (any other outflows)? 

  • 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: 2017_3128
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 28/07/2017

Specialised lending for the ‘Low Default portfolios’ Supervisory Benchmarking Exercise 2017

According to the instructions related to the Supervisory Benchmarking Exercise 2017 for ‘Low Default portfolios’, we are supposed to report portfolios assigned to one of the following exposure classes:(a) Central governments and central banks(b) Institutions(c) Corporates – Other(d) Not applicableThe legal reference for this column is the Paragraph 78 of Annex 2 of Commission Implementing Regulation (EU) No 680/2014. This paragraph 78 defines clearly the different exposure classes and particularly distinguishes ‘Corporate – Other’ and ‘Corporate - Specialised lending’ according to article 147 of the regulation (EU) No 575/2013. Thus, we understand that the ‘Specialised lending’ is not to be reported for the ‘Low Default portfolios’ Supervisory Benchmarking Exercise 2017. Please confirm our understanding regarding ‘Specialised lending’.

  • 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: 2017_3127
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Calculation of operational risk capital requirements under BIA

Under the Basic Indicator Approach used to compute own funds requirements for operational risk, how should the interest revenues from impaired loans be considered in the calculation of the Relevant Indicator (RI), namely, applying the effective interest rate on the gross carrying amount of the loans (before allowances/impairment) or on the recoverable amount, after deduction of impairment?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3126
  • Topic: Operational risk
  • Date of submission:
  • Published as final Q&A: 31/07/2020

High income OECD countries and Liquid asset classifications

Can high income OECD countries’ Government bonds be considered as Level 1 assets for the purposes of the LCR?

  • 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: 2017_3125
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 25/08/2017

Applicability of Directive 2001/24/EC by virtue of Article 117 para 1 subpara 4 of Directive 2014/59/EU

Whether Article 117 para 1 subpara 4 of Directive 2014/59/EU has amended Article 1 Directive 2001/24/EC with the effect that Directive 2001/24/EC is applicable to a Union branch (branch located in a Member State of a third-country institution) that was subject to resolution measures under Directive 2014/59/EU.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3123
  • Topic: Cross-border resolution
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Netting between depositary receipts and underlying equities

With regards to the equities and depositary receipts (DRs) issued is the net position in a combination of equity and related DR determined by taken into account the existence, availability and direction of the conversion programme?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3120
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 22/09/2017

Concept of “secured liabilities”

It is unclear whether the concept of “secured liabilities” as mentioned in Article 44(2)(b) BRRD covers liabilities benefitting from a State guarantee (including thus the so-called “GGBBs”) or whether it is limited to liabilities secured by assets (collateral)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3119
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Exercise of the power to convert liabilities towards creditors

For the purpose of resolution, may the resolution authority exercise the power to convert liabilities towards creditors that would not incur losses under normal insolvency proceedings, where the power of write down has previously been exercised to ensure that the net asset value of the institution under resolution is equal to zero? More generally, how can the needs for recapitalisation be met when the total amount of remaining liabilities which are not excluded or protected by NCWO is not sufficient and the total losses are lower than 8% of the total liabilities?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3118
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Purpose of the use of the power to write down and convert capital instruments and eligible liabilities

What is the purpose of the use of the power to write down and convert capital instruments and eligible liabilities in accordance with Article 59 of Directive 2014/59/EU (BRRD), in case of transfer of assets, right or liabilities to the bridge entity or the asset management vehicle or the use of the sale of business tool?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3117
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Conversion of eligible liabilities to equity

If it is not possible to convert bail-inable liabilities into equity, since, under the applicable national law, the institution may not have shareholders, would it be possible to recapitalize the institution only by writing-down relevant capital instruments and bail-inable liabilities, without converting any liabilities into equity?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3116
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Principal amount in Articles 43-60

What does the term “principal amount” as referred to in Articles 43 to 63 of Directive 2014/59/EU (BRRD) refer to?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3115
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Deposits referred to the in Article 7(8) DGSD

Should the “deposits fulfilling a social purpose defined by national law, for which a third party has given a guarantee” referred to in Article 7(8) of Directive 2014/49/EU (DGSD) be considered as covered deposits or as a secured liability referred to in Article 43(2)(b) of Directive 2014/59/EU (BRRD) ? If not, what may be their ranking in insolvency proceedings referred to in Article 108 of BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3114
  • Topic: Interactions with the DGS and the BRRD
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

AST in combination with other resolution tools

What is the rationale for using the Asset Separation Tool in combination with other resolution tools?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3113
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Transfer of assets to an asset management vehicle

Can a bridge institution transfer assets to an asset management vehicle of its own accord, without the interference of the resolution authorities? Or can assets be transferred from the bridge institution to an asset management vehicle only if the resolution authorities exercise their power to transfer assets, in accordance with Article 42(1) of Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3112
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Minority Interests

In relation to the calculations mentioned in Article 81 CRR, does the information relating to a subsidiary have to be calculated before or after the consolidation process of that subsidiary in the group?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3111
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 06/10/2017

Level of data to be reported for LEI codes provided in Annex I

For Template C 101.00, should we report position of the specific Low Default Counterparty mentioned in Annex I or also report position of the underlying organisations belonging to that Low Default Counterparty?

  • 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: 2017_3108
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission: