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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

Meaning of “liability” in Article 60(2)(b)

Do liabilities mentioned in Article 60(2)(b) only refer to the potential liabilities for damages of the national resolution authority to the holder of the relevant capital instrument or eligible liabilities as referred to in Article 59 BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3019
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Reference to point (b) in Article 60(2)

The final sentence in Article 60(2) refers to point (b). Is that reference correct or is it meant to refer to point (c) of the same Article?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3018
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:

Compensation in Article 60(2)(c)

How should the use of the wording “compensation” in Article 60(2)(c) of Directive 2014/59/EU (BRRD) be interpreted?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3016
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Treatment of CCP Default fund contributions in Leverage Ratio reports

Has the ‘Risk exposure amount for contributions to the default fund of a CCP’ from CA2 (C 02.00) row 460 been taken into account in the Leverage Ratio? If so, in which template (LR1, LR2, LR4, LR Calc) and which row and column shall it be reported?

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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: 2016_3014
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as final Q&A: 07/04/2017

v2819_m - Cross-check between FINREP and Asset Encumbrance

Should 'bank covered bonds' be reported in F 04.03, column 030, rows 090-100?

  • 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: 2016_3013
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 07/04/2017

Capital requirements deduction for credit risk on exposures to SMEs

Further to Q&A 2135 and Q&A 2268, can the capital requirement deduction (SME factor) be applied for speculative immovable property financing (Corporates) if conditions determined in Article 501(1) and (2) of Regulation No 575/2013 (CRR) are met?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3012
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 06/10/2017

Risk weighting attributed to gold bullion coins

Are gold bullion coins included in the term ‘gold bullion’ as used in Article 134(4)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3011
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 21/04/2017

Rules on qualifying holdings in credit institutions

a) Do the rules on notification and assessment of proposed acquisitions of qualifying holdings apply to legal mergers between credit institutions? Is this assessment dependent on whether the merging entities belong to the same group or not?b) Can a competent authority oppose a proposed acquisition, on the basis of concerns related to financial stability. More specifically, can a competent authority oppose a proposed acquisition due to lack of agreement on Memorandums of Understanding on branch supervision between the home state of the acquiring entity and the home state of the acquired entity (which will be host state following the acquisition and future integration)?c) Can a competent authority refuse to make a decision on a proposed acquisition of a qualifying holding and thus exceed the maximum assessment period of 60 working days due to lack of agreement on Memorandums of Understanding on branch supervision between the home state of the acquiring entity and the home state of the acquired entity (which will be host state following the acquisition and future integration)?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3010
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Exclusion of centrally cleared transactions

How should the terms ‘clearing member’ and ‘client’ be understood for the purposes of Article 382(3) of Regulation (EU) No 575/2013 (CRR)? In Article 382(3) CRR, are clients’ transactions excluded from the perspective of the client only or from both perspectives of the client and the clearing member?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_3009
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 20/01/2017

Rating grades in Annex I of the draft ITS on benchmarking

Please confirm the approach to be applied regarding the master scale.According to us, two options seem possible:Case 1: use only the necessary number of proposed available rating grades of the annex 1 (e.g. in case we have 30 different non defaulted values in our master scale, we would map them with the 30 first rating grades of the annex 1)Case 2: distribute the internal master scale on the whole range of the proposed rating grades of annex 1 (e.g. in case of 30 different non defaulted values in our internal master scale, "internal_rating_1" = "rating 1", "internal_rating_2" = "rating 4", "internal_rating_3" = "rating 7", ... , "internal_rating_30" = "rating 99").This should allow a more homogeneous distribution of the different master scales of the institutions in the regulatory proposed master scale from "rating 1" to "rating 99".

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/2070 - ITS on Supervisory Reporting (for benchmarking the internal approaches) (as amended)
  • ID: 2016_3002
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Collateral value

Please confirm that the sum of all the collateral values of all the collateral types of all exposures of a given counterparty should be provided?Remark: this sum will be split between the types of risk where relevant according to the corresponding counterparty codes of the given counterparty.

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/2070 - ITS on Supervisory Reporting (for benchmarking the internal approaches) (as amended)
  • ID: 2016_2999
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as final Q&A: 24/03/2017

EBA validation rule (Leverage Ratio) v4456_m

We think that the validation rule v4456_m may not be correct because the first part is deducting row 260 of C 47.00 “(-) Exposures exempted in accordance with Article 429(14) of the CRR”. However, the exposures included in C 47.00 row 260 are reported in C 43.00 row 090 “Exposures treated as sovereigns” which is added in second part of the validation rule. v4456_msum({C_47.00, c010, r[010, 020, 030, 040, 050, 060, 070, 080, 090, 100-260]}) = sum({C_43.00.a, c010, r[010, 040, 050, 060, 065, 070]}) + sum({C_43.00.b, c010, r[080, 090, 140, 180, 190, 210, 230, 280, 290]}) + sum({C_43.00.c, c020, r[080, 090, 140, 180, 190, 210, 230, 280, 290]})Should it be changed this validation rule in the following sense?sum({C_47.00, c010, r[010, 020, 030, 040, 050, 060, 070, 080, 090, 100-260]}) ≤ sum({C_43.00.a, c010, r[010, 040, 050, 060, 065, 070]}) + sum({C_43.00.b, c010, r[080, 090, 140, 180, 190, 210, 230, 280, 290]}) + sum({C_43.00.c, c020, r[080, 090, 140, 180, 190, 210, 230, 280, 290]})

  • 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: 2016_2997
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Financial Customers

When assessing the primary activities of any legal entity to assess whether these activities fall within the list of activities that define an entity as a "financial customer" (Annex I), should the activity of the entity being assessed include intragroup activity with other controlled entities within the same group or should intragroup activities with other controlled entities within the same group be excluded?

  • 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: 2016_2996
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 21/01/2022

IMV definition for 2017 Market Risk Benchmarking exercise

In Annex V.b it is stated that the Initial Market Value (IMV) means the 'unrealized balance'. Institutions seek more guidance in how to apply this. Should it be the mark-to-market on 27 October 2016, or the difference between the MtM's of 27 October 2016 and 13 October 2016?

  • 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: 2016_2993
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Reporting of assets lending on an unsecured basis

When collateral lending on an unsecured basis maturing within the 30-day period, shall the institution report this as inflows?

  • 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: 2016_2992
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 16/06/2017

Incentives to redeem of a hybrid instrument with a call for grandfathering purposes

Article 489 of Regulation (EU) No 575/2013 (CRR) provides for the grandfathering treatment of hybrid instruments with a call and an incentive to redeem. A bank has issued a bond with a fixed coupon before the first call date and a floating rate coupon after the first call date. The credit spread of the fixed coupon as of the issuance date is the same as the margin of the floating rate coupon after the first call date, so there is no immediate step-up there. However, the floating rate coupon is floored at the level of the fixed rate coupon. Does this constitute an incentive to redeem ?

  • 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
  • ID: 2016_2988
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 17/02/2017

Calculation of distributable items for Additional Tier 1 instruments which is inconsistent across the EU

Art. 52 (1)(l)(i) Regulation (EU) No 575/2013 (CRR) refers to ‘distributable items’ as defined in Art. 4 (128) CRR which refers further into applicable national law and the statutes of the institution. Does such reference also consider items that are non-distributable under applicable national law or the statutes of the institution only for common stock or, alternatively, only following a net assets or insolvency related test?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2987
  • Topic: Other topics
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Prudential treatment of extraordinary ex-post contributions to resolution funds pursuant to Article 104 of the BRRD

Can the extraordinary ex-post contributions to resolution funds provided for by Article 104 of the BRRD be considered as any of the off-balance sheet items mentioned in Annex I of the CRR ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2985
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Pillar 3 Disclosure Requirements for Standalone Solo Banks with a Third Country Parent

Can a solo subsidiary bank located in member states which have a parent located in a third country avail of the CRR exemption set out in Article 13(3) of Regulation (EU) No 575/2013 (CRR) not to apply (in full or in part) the pillar 3 disclosure requirements set out in Part 8 to the extent that they are included within equivalent disclosures provided on a consolidated basis by a parent undertaking established in a third country?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2984
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Definition of "managerial (internal business) purposes" in terms of re-developed IRB model application.

Is there a definition of “internal business purposes” and a list of activities which are considered eligible for internal business purposes in Annex I, Part II, Section 2, paragraph 6 of Regulation (EU) No 529/2014 - RTS on materiality of extensions and changes in the advanced approaches (IRB and AMA)? Are there any impediments to the usage of re-developed IRB models for managerial/internal business purposes?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 529/2014 - RTS on materiality of extensions and changes in the advanced approaches (IRB and AMA)
  • ID: 2016_2983
  • Topic: Model validation
  • Date of submission:
  • Published as final Q&A: 12/05/2017