Question ID:
2020_5575
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Topic:
Supervisory reporting - FINREP (incl. FB&NPE)
Article:
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph:
Annex V
Disclose name of institution / entity:
No
Type of submitter:
Credit institution
Subject Matter:
FINREP Template F 25.01
Question:

Where should changes in a time bucket of already acquired repossessed assets be presented?

Background on the question:

If a repossessed asset which should be presented in Template F 25.01 moves from the time bucket <=2 year to the next time bucket (2-5 years) in the following period, how should this move be presented? Currently its only possible to show inflows and outflows but not changes between the time buckets. We can either present it in the following period as outflow from <2 years and inflow in 2-5 years , but there are in our opinion no suitable positions for that (as collateral obtained or change in FV is not applicable) or we can show it as part of the opening balance of the new time bucket, which would mean that opening and does not correspond to the closing balance.

Date of submission:
21/10/2020
Published as Final Q&A:
30/04/2021
EBA Answer:

Paragraph 349 of Annex V to Regulation (EU) no. 680/2014 (ITS on Supervisory Reporting) states: “In the context of the presentation of collateral obtained by vintage, the ‘ageing’ of collateral on the balance sheet, i.e. the migration between the predefined vintage buckets, shall neither be reported as inflow nor as an outflow”.
Hence, the carrying amount of the collateral obtained shall be reported directly in the opening balance of the new time bucket.

Status:
Final Q&A
Answer prepared by:
Answer prepared by the EBA.
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