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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

Reading of the term "means of payment"

What are the 'means of payment' in the LNE Guidelines (guidelines 1.6 and 1.7)? Does the term refer to the technological level of a physical device or a digital carrier, which may accommodate several payment instruments, such as plastic card (chip or magnetic stripe), a mobile phone, a wallet, an app, a wearable, a tablet, a PC or even a specific storage location on an external server? Please provide examples of 'other means of payment' that are relevant in practice from the EBA's perspective. How is the definition of payment instrument according to Article 4(14) PSD2 to be read in the context of the LNE Guidelines? Is the interpretation of the adjective “card-based” (in combination with means of payment) in line with the same adjective in combination with payment instruments according to Article 2(20) of Regulation (EU) 2015/751 (“IFR”)?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2022/02 - Guidelines on the limited network exclusion
  • ID: 2022_6481
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 29/09/2023

v7380_m and v7381_m

Because of validation rules v7380_m and v7381_m, we perform a check on the computation of the RWEA to ensure consistency of RWEA reported on securitisation transactions between templates C 13.01, C 19.00, C 20.00 vs. C 14.01. To comply with rule EGDQ_0362h_5, it is expected that there are no RWA being reported in template C 14.01 for any securitisation position on underlying identified as 'Covered Bonds' or 'Other liabilities'. How can we fulfill v7380_m and v7381_m, where we have securitisation positions with underlyings identified as 'Covered Bonds' or 'Other liabilities', so that we did not report any RWA in template C 14.01 as requested by rule EGDQ_0362h_5?  

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6480
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 25/01/2023

Credit conversion Factor (CCF) reporting

Our concerns would apply to almost all IRB templates (i.e. COREP C 08.01). What would be the correct option?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6479
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 29/06/2023

C 14.00 - Consistency of v7667_a

Is the validation rule v7667_a consistent with the ITS?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6478
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 25/01/2023

Calculation of RWA for assets that are deducted from own funds

As a follow-up question to Q&A 6106, what would be the appropriate risk weight to be used for the purposes of col 0030 'RWEAs: SA exposures' in the case of assets that are deducted from own funds?

  • 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: 2022_6477
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 03/05/2024

Netting of DTAs with DTLs for the purposes of the calculation of leverage exposures

For the purposes of calculation of leverage exposures as per CRR Art. 429 should the amount of DTAs be reduced  by the amount of the associated deferred tax liabilities?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6476
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 26/07/2022

Credit risk and EBA Clearing instant payment system RT1

  Credit institutions are participating in EBA Clearing instant payment system RT1. Whether the bank’s credit risk exposure related to the system holding balance is to the system operator, ie EBA Clearing or to the European Central Bank as the institution managing the consolidated accounts?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6475
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

Independence of the internal control functions

We would like to clarify if the organizational set-up of the control functions can be considered as fully compliant within the applicable regulatory framework to ensure independence of the control functions if the Chief Compliance Officer (CCO) is structurally allocated and subordinated to the Chief Executive Officer (CEO) in a two-tier governance structure model?  

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2021/05 - Guidelines on internal governance under CRD - repealing EBA/GL/2017/11
  • ID: 2022_6474
  • Topic: Internal governance
  • Date of submission:
  • Published as Rejected Q&A: 04/11/2022

K-CON own fund requirements

How should the K-CON requirement be calculated under Article 39 of Regulation (EU) 2019/2033?   

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6473
  • Topic: Concentration risk
  • Date of submission:
  • Published as final Q&A: 28/04/2023

Validation rule eba_v0314_m

 Is the formula of validation rule eba_v0314_m consistent for the columns 216 and 217 ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6472
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

v10861_m - G-SII- vs LR-reporting

Is the formula of validation rule eba_v10861_m consistent ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6471
  • Topic: Supervisory reporting - Other
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

F 36 - Reporting of rows "Matching liabilities"

Q&A 682 suggests to follow a ‘quality’ criterion to split the liabilities amount in case of multiple different types of encumbered assets. In our opinion, the meaning of ‘quality' is not clear, because multiple drivers can be used.    

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6470
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as Rejected Q&A: 16/02/2023

Population of F13.1 & F13.2 with respect to debt securities issued by third parties

With respect to the population of F13.1 & F13.2 there seems to be a contradiction between the information provided in the answer to Q&A 2014_916 and the Annex V instructions Part 2, paragraph 173 (b) (iii) with respect to how pledges of securities by third parties are treated. Q&A 916 states that 'Rest' refers to "loans that have been collateralised with debt securities issued by any third-parties"  and shall include 'pledges of other securities issued by third parties including general government'. This instruction is to be used for the population of Col 0041 in F13.1 and Row 0070 in F13.2. However the Annex V instructions Part 2, paragraph 173 (b) (iii) for 'Equities and debt securities' state that collateral in the form of debt securities issued by third parties should be included within this definition. This instruction is to be used for the population of Col 0032 in F13.1 and Row 0060 in F13.2. Can clarification be provided as to where collateral in the form of securities issued by third parties in 13.01 and by extension repossessed collateral in 13.02 are to be reported?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6469
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 16/02/2023

NACE use in Pillar III ESG vs FINREP

1. Does further instruction on NACE classification for a particular counterparty as applicable for disclosures purposes in Pillar III ESG (e.g. Template 1 – Banking book – Climate change transition risk: Quality of exposures by sector) also apply for NACE classification for that same counterparty as presented in FINREP (template F06.01)? 2. Can additional clarification be provided for FINREP template F06.01 Section K 'Financial and Insurance activities'?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6468
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

Treatment of credit risk exposure for credit institutions accessing the overnight deposit facility via a national central bank

Should a credit institution accessing the overnight deposit facility via a national central bank (NCB) treat its credit exposure as being to the relevant NCB pursuant to Capital Requirements Regulation (CRR) Article 114(4), or to the European Central Bank (ECB) pursuant to CRR Article 114(3)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6467
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 22/12/2022

Inclusion of expected loss for equity exposures in calculation of Expected loss amount reducing CET1

Are the expected loss amount for equity exposures calculated in accordance with Article 158(7), (8) or (9) CRR included in the impairment comparison according to Article 159 CRR or not? Shall the expected loss amount for equity exposures be deducted directly from Common Equity Tier 1 capital in row 380 of CA1 (in accordance with Article 36 (1)(d) CRR)? Even if as a consequence validation rule v4811_m would fail?

  • 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: 2022_6466
  • Topic: Model validation
  • Date of submission:

Reporting of underlying exposures of a CIU

As per Article 132a(1) CRR, institutions should do the risk weighting all underlying exposures of the CIU as if they were directly held by those institutions. If underlying exposures are of mix approaches (STD and IRB), then should they be reported on C 07.00 and C 08.x and C 34.x respectively?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6465
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 25/01/2023

SCA for token replacement

Is SCA required for the replacement of a tokenized card happening in the background without any ‘action by the payer’ under Article 97(1)(c) PSD2 in the following cases: Expiry of the token and update of the token Replacement of the card, and the new card has a different BIN/Account Range (e.g., for product graduation, such as standard to gold, or simple BIN management) and/or different functionalities Technical and/or configuration changes to the issuer’s BIN configuration (such as migrating from 6 to 8 digit BINs) In all these cases, the existing tokenized credentials have been initially associated with SCA to the user under Article 24(2)(b) RTS, and this is solely a technical replacement of the token. credentials have been initially associated with SCA to the user under Article 24(2)(b) RTS, and this is solely a technical replacement of the token.

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication
  • ID: 2022_6464
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 31/01/2023

Definition of trading book according to new IFD/IFR

Should the proprietary positions of the investment firm in the financial instrument in order to invest own funds of the investment firn which are held until maturity (for long-term) be recorded in the non-trading book and thus for such cases the investment firm would not need to have licence for dealing on own account?     

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6463
  • Topic: Capital requirements
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Remuneration

I would ask for confirmation that the guidelines contained in the EBA/GL/2021/04 have scope of application to employees, relevant personnel and persons who assume the risk. As indicated in “4 Guidelines – Title 1 – Remuneration policies for all staff -  point 15”, instead, for other persons acting on behalf of the institution (e.g. tied agents) it is understood that the institution, with regard to the remuneration policy, must set only a framework that ensure the payments made are not providing any incentive for excessive risk taking or the mis-selling of products. Therefore, the remaining guidelines contained in the EBA/GL/2021/04 do not have, as their scope, external agents or networks that have no influence on risk-taking policies.   Chiederei conferma che le direttive riportate nella circolare EBA/GL/2021/04 trovano ambito di applicazione al personale dipendente, il personale rilevante e i soggetti che assumono il rischio. Come indicato all’articolo 4 punto 15, invece, per le persone che agiscono per conto dell’ente (ed esempio, gli agenti collegati) si intende che l’ente, in merito alla politica di remunerazione, deve stabilire soltanto un quadro che garantisca che i pagamenti effettuati non forniscano alcun incentivo all’assunzione di rischi eccessivi o alla vendita abusiva di prodotti. Pertanto le restanti linee guida contenute nella circolare EBA/GL/2021/04, non hanno come ambito di applicazione, gli agenti o reti esterne che non hanno alcuna influenza sulle politiche di assunzione del rischio.

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2021/04 - Guidelines on sound remuneration policies under CRD (repealing EBA/GL/2015/22)
  • ID: 2022_6461
  • Topic: Remuneration
  • Date of submission:
  • Published as Rejected Q&A: 26/07/2022