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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

Operational risk – gross loss in tax related events in accordance with REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the output floor, Article 318.

How should an institution calculate gross loss based on the regulatory changes stipulated in Article 318. of the Regulation amending Regulation 575/2013 in the following examples? Case 1 – Delayed tax payment, penalty interest payment, and system repairment expenses Case 2 – Delayed tax payment, no penalty interest payment, system repairment expenses.  Case 3 – Tax to be paid for this year and previous years, no penalty interest, or fine, financial reports for previous year to be revised and re-published.  Case 4 – Tax to be paid for this year and previous years, no penalty interest or fine, no changes to financial reports for previous year.  Case 5 – Tax to be paid for this year and previous years, penalty interest and fine, financial reports for previous year to be revised and re-published Case 6 – Tax to be paid for this year and previous years, penalty interest and fine, no changes to financial reports for previous year   

  • 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

near miss

Hi I am looking for the definition and description of near- miss events and if possible also provide some examples. 

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

Business line mapping of ancillary activities

For the purposes of assigning banking business activities to a determined business line, in the case that an institution carries out an activity that supports its retail business of deposits acceptance, considering that the institution has neither a separate organizational unit nor a specific profit and loss account for this supportive activity, should it be allocated to the “retail banking” business line? On the other hand, if such activity is carried out by the institution in a separate organizational unit as regards its internal management accounting statements (not necessarily included in a different legal entity), should it be considered as an activity consisting on the placing of financial instruments (as it is calculated from the management profit and loss account) , and thus be mapped into the “retail brokerage” business line?

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

Operational Risk - Refund of interest and fees

Do we have to report refunds to customers in combination with incorrectly overchared interest/fee in COREP 17.01? And if so, in which of the following situations:  1. refund by the bank within less than 5 days  2. refund by the bank within a quarter (before the quarterly financial statement is prepared)  3. refund by the bank within one year (before the annual balance sheet and income statement are prepared)  4. refund by the bank after several years  The timing of the outflow of the refund to the customer depends in each case on the time at which the error is identified.

  • 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 (repealed)

Calculation of own funds requirements for operational risk under BIA

Under the Basic Indicator Approach used to calculate 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, on the gross carrying amount of the loans or on the net amount i.e. after the deduction of the result on specific provisions or impairment losses for interest on impaired loans?

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

Reducing the relevant indicator by using expenditure on the outsourcing of services rendered by third parties which are not subject to rules under, or equivalent to the CRR

May the institution use expenditure on the outsourcing of services to reduce the relevant indicator when calculating own funds requirement under the Basic Indicator Approach (according to Article 316 of the CRR) if the outsourcing services were rendered by third parties which are not subject to rules under, or equivalent to the CRR?

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

Treatment of direct recoveries under AMA

Can a bank use gross losses net of direct recoveries in modelling for capital purposes under Advanced Measurement Approach for operational risk?

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

Inclusion (or not) of a particular "timing loss" in the C 16.00 and C 17.00 template

Shall a particular "timing loss" in the Operational Risk Losses be included or not in the reporting template for operational risk?

  • 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)

Provisions as part of the own funds

Can provisions that are made against loss events in the past (i.e. previous accounting periods) be used as a capital substitute to cover future losses? Are these provisions available with a high degree of certainty?

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

Operational Risk business line mapping

When an entity carries out an activity for retail customers in a supportive manner to lending and taking deposits from customers in such a way that the entity has neither a separate organisational unit nor a specific internal P/L account for this activity, should it be allocated to the retail banking business line? On the other hand, if the said activity is carried out by the entity in a separate organisational unit with its internal management accounting statements (not necessarily a different legal entity), should its relevant indicator (calculated from the management P/L account) be mapped into the business line established by Article 317 CRR (as an example, in the case of placement of financial products, to retail brokerage)?

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

Meaning of "the last three twelve-monthly observations" in Articles 315(1) and 317(4) CRR regarding the calculation of operational risk requirements

What is the correct application of the words “the last three”, which can be found in the wording “the last three twelve-monthly observations at the end of the financial year” in Article 315(1) CRR on BIA and in Article 317(4) CRR on STA? In particular, does “the last three” include the current year X when calculating the own funds requirements with reference date 31 December X?

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

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

Operational risk - compliance risk

Does the definition of operational risk include compliance risk?

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

Taking into account insurance effect on operational risk

Recital 52 of Regulation 575/2013/EU (CRR) suggests insurance should be taken into account for the determination of own funds requirements with respect to operational risks, including in simple approaches. How can insurance be taken into account in the basic indicator and standardised approaches of operational risk?

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

Operational risk

Article 95 (3) in Regulation (EU) No 575/2013 (CRR) has a reference to Title VII, Chapter 3, Section II, Sub-section 1 of Directive 2013/36/EU. From reviewing Directive 2013/36/EU (CRD) there are no sub-sections of the above mentioned Section II. Section II which starts with Article 119 regards Financial holding companies etc. In light of this the reference to the CRD in Article 95 (3) of the CRR does not seem to be correct, could the EBA please provide guidance?

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