- Question ID
-
2015_1922
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- Resolution financing arrangements
- Article
-
103
- Paragraph
-
2
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
- Article/Paragraph
-
5(1)
- Type of submitter
-
Competent authority
- Subject matter
-
Exclusion of Intragroup Liabilities -Treatment of cases when one institution pays annual contribution according to Article 10 of DA (lump sum) and the other according to standard risk-weight reflecting approach
- Question
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How to apply requirement of Article 5 (1) (a) to exclude intragroup liabilities arising from transactions between institutions where one party to the transaction qualifies for lump-sum contribution in line with Article 10 of DA?
- Background on the question
-
In order to avoid double counting of certain group liabilities when calculating ex ante contributions to resolution arrangements, the Commission Delegated Regulation 2015/63 (EU) stipulates several conditions that must be fulfilled to allow particular intra-group liabilities to be deducted from the calculation base.
Assuming that all conditions for intra-group liabilities as laid down by Article 5(1)(a) were fulfilled, there may arise cases where one party of a contract qualifies for lump-sum contribution in line with Article 10 of the Commission Delegated Regulation 2015/63 (EU) while the other does not.
- Submission date
- Final publishing date
-
- Final answer
-
According to Article 10(10) of the Commission Delegated Regulation (EU) 2015/63, the exclusions of Article 5(1) shall not be taken into account when computing the annual contributions of small institutions as defined in Articles 10(1) to 10(9).
Disclaimer:
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
- Status
-
Final Q&A
- Answer prepared by
-
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
- Note to Q&A
-
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.