Question ID
2022_6350
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Article
430
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annexes III, IV, V
Type of submitter
Credit institution
Subject matter
Interest-income on credit impaired financial assets (template F 16)
Question

Template F 16, r0280, of which: interest-income on credit impaired financial assets: if a financial asset was credit impaired during for example Q1, Q2, and Q3, but during Q4 became performing again, should we still report the interest-income reflected on this row in the Q4-reporting?

Background on the question

When a customer is NPL during a certain quarter, but after that becomes performing again, we're not sure whether we should clear the amount reported in r0280 for interest-income generated during the quarters in which the customer was NPL.

Submission date
Final publishing date
Final answer

Annex V to Regulation (EU) 2021/451 (ITS on Supervisory Reporting, ITS) gives some instructions for the reporting of the financial information. Part 2 of that Annex contains specific instructions for the templates. As indicated in “15. BREAKDOWN OF SELECTED STATEMENT OF PROFIT OR LOSS ITEMS (16), template F 16 includes further breakdowns of gains (or income) and losses (or expenses) for selected items of the income statement.  

The information requested in r0280 corresponds to a breakdown of the total amount of interest income recognised in PL for the corresponding reporting period (reported under r0270) and relates to the recognised interest income on assets that are classified as credit impaired at the reporting date. Therefore, if the asset is not anymore classified as credit impaired at the reporting date, the corresponding interest income accrued during the period shall continue to be reported broken-down by instrument and counterparty sector in template F 16.01 but they are not anymore reported under row 0280. 

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

Disclaimer

The Q&A refers 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.