- Question ID
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2019_5037
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Operational risk
- Article
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317
- Paragraph
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3
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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Not applicable
- Type of submitter
-
Credit institution
- Subject matter
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Calculation of the 3 year indicator at consolidated level when figures for individual subsidiaries are negative
- Question
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When applying prudential consolidation under the Standardised Approach, does Article 317(3) CRR apply to the indicator on a consolidated level?
- Background on the question
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If for example the parent entity has a positive relevant indicator for each of the 3 years but the subsidiary has two years with negative relevant indicator, it is unclear whether Article 317(3) CRR is applicable at the consolidated level, i.e the negative balances of the subsidiary can be offset with the positive figures of the parent entity (but in any case the net result should be floored to zero) in the corresponding years. It is clear that for the solo calculations of the individual subsidiary no negative numbers can be used. But the question is whether the negative values of the subsidiaries can be offset with the positive relevant indicator of the parent and/or other subsidiaries of a Group at the consolidated level i.e when calculating the capital requirements for the Group.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
For further information please refer to the press release and the updated Q&A page.
- Status
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Rejected question