Search for Q&As

Enquirers can use various factors to search for a Q&A:

  • These include searching by the Q&A ID; legal reference, date submitted, technical standard / guideline, or by keyword if known.
  • Searches can be extended to more than one legal act, topic, technical standard or guidelines by making multiple selections (i.e. pressing 'Ctrl' on your keyboard, and selecting the relevant ones from the drop-down lists by left mouse-click).

Disclaimer:

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.

Final Q&As Q&As under review Rejected Q&As Archived Q&As All Q&As

List of Q&A's

Calculation of absolute value that should be considered according to Article 47c CRR as amended by Regulation UE 2019/630- Deduction for non-performing exposure

How to calculate the absolute value attributable to each non-performing exposure “where the absolute value attributable to each non-performing exposure is determined by multiplying the amounts deducted pursuant to point (d) of Article 36(1) by the contribution of the expected loss amount for the non-performing exposure to total expected loss amounts for defaulted or non- defaulted exposures, as applicable" as indicated in the Article 47c 1(b) (iv)

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_5038
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Interpretation of articles 36 (1) f and 42 of CRR regarding equity-settled share-based payments.

How should be treated shares that are bought and specifically affected to hedge equity-settled share-based payments (payments in equity instruments) ?

  • 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: 2019_5022
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Amended ranking requirement in point (d) of Article 63 of the CRR

Which interpretation of the new requirement in point (d) of Article 63 of Regulation (EU) No 575/2013 (CRR), as amended by Regulation (EU) 2019/876 is correct?Do all banks need to amend the T&Cs of their Tier 2 instruments due to the new wording of point (d) of Article 63 of the CRR in order to be CRR-compliant (considering that there is no respective grandfathering provision in the CRR)? orDo banks for which the resolution authority does not set a subordination requirement with respect to MREL or banks for which the MREL requirement consists solely of the loss absorption amount (as the respective bank is to be wound up under normal insolvency proceedings and not subject to resolution) remain compliant with the new wording in point (d) of Article 63 of the CRR without the need to amend their respective T&Cs?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4950
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Grandfathering according to Articles 494a and 494b of the CRR

Should Article 494a(1) and (2) of the CRR also cover points (p), (q), and (r) of Article 52(1) and points (n), (o) and (p) of Article 63, respectively?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4949
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Calculation of the amount of holdings of own Common Equity Tier 1 instruments on the basis of the net long position

How should the condition in Article 42 a) i) “(i) the long and short positions are in the same underlying exposure and the short positions involve no counterparty risk” be applied when there are long and short positions on the same underlying reference with the same counterparty under the same master netting agreement ?Are the single net amounts fixed by such contracts to be considered rather than the gross amounts? Explanatory note: The master netting agreement we are considering complies with the conditions required under CRR (Article 206)

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4904
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Calculation of the amount of holdings of own Common Equity Tier 1 instruments on the basis of the net long position

Could it be assumed that short positions maintained with a Qualifying Central Counterparty do not involve counterparty risk according to Article 42 a) i) CRR and thus be netted for the purposes of the calculation of the amount of holdings of own Common Equity Tier I instruments to be deducted under point (f) of Article 36(1)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4903
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Own funds instruments passed on to employees of the institution as part of their remuneration

If an authority has already granted permission in advance to buy a certain predetermined amount of shares for “discretionary trading activity over treasury shares” and those shares are the ones that are passed on to employees as part of their remuneration. Under Article 29 of Commission Delegated Regulation 241_2014 is there needed a separate permission to pass on to employees those own shares?

  • 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: 2019_4902
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR

When does a transaction that falls under the provisions on the minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR become non-performing within the meaning of Articles 47a to 47c CRR? From the day on which the risk position increases due to a forbearance measure (e.g. 01.06.2019) or from the day on which the risk position actually became non-performing (e.g. 01.12.2018)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4829
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Relevance of third country capital requirements for the calculation of minority interests amounts of a subsidiary to be included at the consolidated leve

When applying Article 84(1), point (a), of Regulation (EU) No 575/2013 (CRR) in respect of subsidiary institutions in third countries, should the excess capital attributable to minorities be determined by applying, namely in subparagraph (i), the provisions and requirements of CRR, together with any additional local requirements, to the extent these have to be met with CET1 capital?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4775
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 03/12/2021

Interim profits attributable to minority shareholders

Is the prior permission of the competent authority needed at individual level of a subsidiary to include in the consolidated CET1 items the interim profits of that subsidiary attributable to minority shareholders?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4734
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 11/02/2022

Scrip-dividends at investors’ discretion

Can Article 2(10) of the Commission delegated regulation 241/2014 be applied in case the holder of the CET1 instruments has the option to decide whether to receive the dividends in cash or in shares?

  • 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: 2019_4732
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 04/09/2020

Quantification of foreseeable dividends when the dividend policy is set as a fix amount

Which amount should be deducted from interim/year-end profits pursuant to Article 26(2) CRR if a bank has a dividend policy stating that a certain specified amount (i.e. x.xx €) should be paid per share?

  • 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: 2019_4731
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 15/05/2020

Moment of deduction for cooperative shares

In the case of a cooperative institution, should deductions from own funds with regard to a permission to reduce CET1 capital in accordance with Article 77(a) of Regulation (EU) No 575/2013 (CRR) and Article 32 of the RTS on Own Funds be made right after the permission from the competent authority (CA) is granted (as laid down in Article 28 (2) of the RTW on Own Funds ) or could it be later for instance at the time when the institution receives the notification of the intention to redeem from the shareholder?

  • 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: 2019_4719
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Prudential consolidation: definition of "undertaking" and "dominant influence"

For the purpose of the application of CRR Article 18(1) and CRR Article 18(8) could you clarify whether:- the term “undertaking” means necessarily “entity” having a legal personality;- the term “dominant influence” has to be understood in a broader sense than within the meaning of the Article 1(1) of the Directive 83/349/EEC;

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4716
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Fulfilment of conditions reported under Article 45(a) CRR for a synthetic holding held in the banking book and with a maturity less than 1 year

Can a Bank calculate the amount of the position subject to FSE thresholds’ mechanism for CET1 capital purposes for a synthetic holding as the net position resulting after offsetting the long position in equity and the short position from the forward sale agreement with a maturity less than 1 year?

  • 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: 2019_4687
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Definition of short position

1. Can a put option which is subject to certain conditions qualify as a short position for the purposes of Article 45 CRR provided that (i) the fulfilment of the conditions depends only on the holder of the put and (ii) all the other conditions mentioned in Article 45 are met?2. In case a bank has on its banking book a holding of CET1 instruments in a financial sector entity and it buys an unconditional put option with the same underlying, which amount should be netted, either the notional value (strike price multiplied by the number of underlying instruments of the option) or the market value of the put, provided that all the other conditions mentioned in Article 45 CRR are met?3. In case the answer to question 2 is the notional value, if a put option does qualify as short position for the purposes of Article 45 CRR, how should this short position be treated for the purposes of credit risk requirements?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4675
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Eligibility Criteria for Tier 2 Capital in light of the replacement of LIBOR/EURIBOR

1. If the replacement reference rate proposed in the context of a change to a different benchmark rate, such as in the context of LIBOR transition, could result in a greater credit spread on an own funds instrument, whether as a consequence of a one-off adjustment to the credit spread at the time the replacement reference rate is implemented or as a consequence of an agreement to reset the credit spread at any future date or dates (whether or not in the context of any call option dates), would this potential outcome be considered to be a feature that provides an incentive to redeem for the purposes of Article 63(h) CRR? 2. If the replacement interest rate proposed by an issuer for its LIBOR-linked floating rate Tier 2 own funds instruments is a rate which is based on the credit standing of the issuer or its parent undertaking (or any intermediate parent undertaking), for example through the credit spread incorporated within a coupon derived from an overnight, or averaged overnight, risk-free rate, would that replacement rate of interest result in those instruments failing to satisfy the criterion specified in Article 63(m) CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4568
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 11/02/2022

Transactions in the banking book where no strike is available

For a put option in the non-trading book, where there is no guaranteed minimum payment and the price will only be determined after the occurrence of specified events i.e. there is no strike price for the put option, how would the notional amount be calculated in accordance with Article 15(f)(1)(b)(ii) of Regulation (EU) No 241/2014? Should the notional be determined based on an equity delta equivalent amount?

  • 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: 2019_4517
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Calculation of foreseeable dividend to be deducted from interim profits when interim dividend has been paid

How exactly is the amount of interim profit to be included in Common Equity Tier 1 calculated according to Article 2(2) to (4) of the Regulation (EU) 241/2014 when the interim dividend has already been paid out and yet no final divided has been formally decided or proposed to the institution’s relevant body?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4477
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 15/05/2020