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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.

List of Q&A's

ESG P3 - Template 1, 5 and 7 disclosure of subsidiaries, joint venture and associates

Does Equity instruments to be reported in Pillar 3 ESG tables include also investment in subsidiaries, joint ventures and associates?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Requirement for loan agents to register as payment service providers under EU's Second Payment Services Directive 2015/2366 ("PSD2").

I would like some clarification on Directive 2015/2366/EU (PSD2) Article 4 paragraphh 22 - Money remittance. If a firm performs administrative services (including but not limited to the calculation of interest/fees and principal owing between lenders and a borrower) and as part of this service is required to regularly transfer money between lenders and a borrower (no fee involved), does this qualify as money remittance? No fees are charged for the transfer of money.  

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Secure corporate payment processes and protocols and inactivity time period

May the period time of inactivity required by the (EU) 2018/389 - RTS on strong customer authentication and secure communication (hereinafter: RTS on SCA & CSC) Article 4 (3) (d) be changed from 5 minutes to 20 minutes if the exemption based on Article 17 of RTS on SCA & CSC has been granted by the competent authority to the Payment service provider?

  • 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

Taps on callable Eligible Liabilities

If a subsequent tap of a callable MREL-eligible instrument (Senior preferred or Senior non-preferred instrument) is priced at a spread higher than the secondary market (i.e., the investor buys the new tap below par) in order to align the tap spread to the initial credit spread and the reset spread (following the tightening of the spreads of the initial tranche in the secondary market), would the reset of the margin at the first call date to the initial spread of the original issue be considered an incentive to redeem as per Article 20 of EBA RTS for Own Funds and Eligible Liabilities requirements for institutions? In case of the presence of an incentive to redeem, would this result in a shortening of maturity of eligible liabilities as per Article 72(c)(3) of the CRR for the tap only or for the full instrument (i.e., both the tap and the original instrument?).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions

Disclosure of transactions with zero exposure value

Under Article 274(5) and 273 there are circumstances where transactions may have a zero exposure value e.g. netting sets made up entirely of written options or certain CDS transactions. Should these be reported in the C34.02 with values in columns 0020-0140 and then have c0150 onwards set to 0 (or c0170 onwards?) or should they be disregarded from population of values in any columns as there is no requirement to calculate exposure for these transactions. Similarly should they be included in the same C34.03 columns?

  • 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

Categorisation of indirect exposures to collateral issuers

The guidance for c120 to c170 states "The institution shall report the original amount of the indirect exposures in the column that corresponds to the type of direct exposure guaranteed or secured by collateral such as, when the direct exposure guaranteed is a debt instrument, the amount of ‘Indirect exposure’ assigned to the guarantor shall be reported under the column ‘Debt instruments’" This example makes intuitive sense for guarantees as the nature of the indirect exposure is based upon the form of the exposure which has been guaranteed and through substitution effect transferred to the guarantor. However should the same logic also apply to exposures secured by collateral where the indirect exposure is based upon a reduction in exposure of the collateral received rather than through a substitution effect to the original type of exposure? For example, if i have a derivative exposure for which i have reduced the original exposure to the client through receipt of a debt instrument as collateral should the indirect exposure arising to the issuer of the collateral be reported in c120 for debt instrument or c140 for derivative?

  • 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

Whether the derogation under Article 500a(2) CRR should also be recognised in Article 395(5) CRR.

Given there is in place the permission under Article 500a(2) CRR specifying higher limits for exposures to the central governments and central banks of Member States, where those exposures are denominated and funded in the domestic currency of another Member State, should there in the Article 395(5)(a) CRR be recognised this new value, or should there be used in Article 395(5)(a) CRR the value of the limit specified in Article 395(1) CRR anyway?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Definition of default for open-end investment funds

Should an open-end investment fund be considered an obligor under Art. 178 (1) CRR, irrespective of whether it has legal personality under a Member States’ regulations on investment funds?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Non-retail and term deposits where a flow is expected within 30 calendar days even if the maturity date is after 30 days

What is the treatment of non-retail deposits where the depositor is not allowed to withdraw the deposit or where there’s a significant penalty in case of withdrawal? What is the treatment of non-retail term deposits where an amortizing amount is due and authorized during the LCR period without a significant penalty ? What is the treatment of retail term deposits where an amortizing is due and authorized during the LCR period without a significant penalty ? What is the treatment of deposits on notice where the notice period is greater than 30 days ?

  • 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

Reporting of off-balance sheet exposures (any undrawn purchase commitment) from factoring contracts in F_09.01.1

In case of off-balance sheet exposures from factoring contracts (with or without recourse), who should be considered as the immediate counterparty when reporting these exposures in F 09.01.01?Should these off-balance sheet exposures be reported as loan commitments given or other commitments given?

  • 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

CVA hedges in the calculation of UCS

When calculating Unearned Credit Spread (UCS) is it allowed to include CVA hedges as well?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Applicability of the Guidelines of the Committee of European Banking Supervisors on the management of operational risks in market-related activities (12 October 2010)

Are the Guidelines of the Committee of European Banking Supervisors on the management of operational risks in market-related activities (12 October 2010) still in force and applicable? Is the same legal reasoning used under Question 2020_5340 applicable?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Definition of elligible capital

Can a parent company give a guarantee to investors of new shares in a bank and back it with their own assets? Or can a sister company invest in a bank? Can a bank lend to a company that already holds AT1 instruments of a bank? If so, is there a deduction? What if that company's investment in the bank is not a significant proportion of its portfolio and the bank's failure would not jeopardise the loan? What if the bank lends to a company that will use the loan to buy the bank's planned issue of AT1 instruments, but the loan is backed by high quality collateral?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Deductions from Common Equity Tier 1 items

1. Bank owns usd 20 million worth of 18% ordinary shares of a financial institution Alpha Bank. Alpha Bank has also invested usd 12 million to this bank's CET1 in order to artificially inflate the capital of both banks.  When calculating regulatory capital, USD 12 million reciprocal cross-holding was deducted from CET1. Now, when the bank calculates adjustments for investments in the capital of financial entities, should it count the investment in Alpha Bank as 8 million, and even if so, will it be considered a significant investment or an insignificant investment? 2.  Bank has a wholly owned subsidiary, Valeria Ltd, which is a non-financial entity. Valeria Ltd holds 100% of the shares of Karina Insurers, which is a financial institution. Should the bank now consider this as a significant investment (here indirect) in a financial institution and make deductions accordingly, or should the bank consider only Valeria Ltd in deductions (alternatively 1250% RW) as a qualifying non-financial holding? If the first option is the correct answer, should it ignore the investment in Valeria Ltd? 3.  A bank has 100 million CET1 and 10 million AT1 capital. The bank then invests 50 mln to buy 100% of an insurance company that holds the bank's 10 mln AT1. When recalculating the regulatory capital, the bank deducts 40 mln (50 - 100*10%) from CET1 as an investment in financial sector entities above the 10% threshold. Now, when calculating AT1, should the bank make an adjustment to 10 mln AT1 because it is considered an investment in own capital? If so, how much?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Interpretation of "exposures attributable to a central government" set forth in Article 400 (1)(d) of CRR

In the context of the application of Article 400 (1)(d) of CRR, which sets forth the types of exposures that shall be exempted from the application of Article 395 (1) of CRR, what exposures shall be considered to be attributable to the central government? May a financial institution exempt exposures to state-owned enterprises that i) provide public services, ii) the economic activities of which are subsidized by the state, iii) where the transfer of financial resources is based on legislative arrangements, provided that such exposures - if they were to exist to the central government, that is the entity to which the exposure is attributable, would be assigned a 0 % risk weight under Part Three, Title II, Chapter 2 of CRR? May the application of Article 400(1)(d) be triggered by demonstrating that there is a risk equivalence between exposures to such state-owned enterprises and exposures to central governments?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

What to report in D 05.00.b - Banking book - Indicators of potential climate change physical risk?

Question 1: what are the data/NACE code in scope to be reported for template D 05.00.b - Banking book - Indicators of potential climate change physical risk? Question 2: what is the level of NACE code to disclose in template D 05.00.b - Banking book - Indicators of potential climate change physical risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Reference of the cells and reports layouts to use for the public disclosures (NOT the XBRL reporting)

Question 1: What are the cells references that must be publicly disclosed into annual and semiannual public disclosures: the reference of the cells from the ITS or the references of the cells from the XBRL? Question 2: What are the reports layouts that must be publicly disclosed into annual and semiannual public disclosures: the layout from the ITS or the layout from the XBRL?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Derivates splitting

In Part 5, No. 24 of the Annex 29 (REPORTING INSTRUCTIONS FOR THE PURPOSE OF INTEREST RATING RISK IN THE BANKING BOOK) is mentioned 'In the case of derivatives, institutions shall report the net amounts of repricing cashflows (i.e., not broken down by receiver/payer legs).' At the same time regarding the repricing cashflows, there is a link to the RTS SA which says in Article 10  'Derivative instruments not subject to optionality shall be separated into a paying and a receiving leg.' Can you please clarify if the Derivates should be shown as net position in J 05.00 or should they be split into their legs?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Weighted average repricing date

In the "ITS ON SUPERVISORY REPORTING FOR IRRBB" is mentioned that the institution has to report the "weighted average repricing date" in J 08.00 and J 09.00: Relevant parameters. Can you please clarify what kind of figure is expected? Does the institutuions has to fill in a date e.g. '30.09.2029' or a number e.g. '5' for five years?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Admissible values to {C34.06, c0040}

According to XBRL rule v10236_a: [C 34.06 (All rows)] {C 34.06, c0040} in {[eba_CT:x10], [eba_CT:x1], [eba_CT:x12], [eba_CT:x598], [eba_CT:x599], [eba_CT:x20]}. On the other hand, "DPM table layout and Datapoint categorization" file available at EBA website, the admissible values are: (CT:x10) Central banks; (CT:x1) General governments;  (CT:x12) Credit institutions;  (CT:x18) Financial corporations other than credit institutions; (CT:x598) Financial corporations other than credit institutions and investment firms; (CT:x599) Investment firms; (CT:x20) Non-financial corporations; (CT:x5) Households.  The EBA xbrl validation rule does not include (CT:x18) "Financial corporations other than credit institutions" nor (CT:x5) "Households". This mismatch has been caused validations warnings. Could you, please, clarify which admissible values should be considered for {C34.06,c0040} ?

  • 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