Question ID
2019_5038
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Own funds
Article
47c
Paragraph
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
47
Type of submitter
Credit institution
Subject matter
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
Question
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)
Background on the question
According to Article 36(1)(d) CRR2, Institution using the IRB Approach deducts from CET 1, negative amount resulting from the calculation of expected loss amounts, considering performing and non-performing exposures. However, Calendar Provisioning framework refers to non - performing exposure. In this context, in order to calculate the absolute value attributable to each non-performing exposure, it is not clear if, the total expected loss amounts should consider both defaulted and non-defaulted exposure.
Submission date
Rejected publishing date
Rationale for rejection

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Status
Rejected question