Question ID
2023_6737
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - COREP (incl. IP Losses)
Article
430
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
C34.08
Type of submitter
Investment firm
Subject matter
Definition of domestic for reporting collateral by type
Question

For the purposes of populating the C 34.08 of Annex 1 to the Regulation (EU) 2021/451 it asks for cash to be split by domestic currency and other currencies and sovereign debt to be split into domestic and other. In this context, how should domestic be interpreted? We can think of three possible options:

1) Domestic refers to the country of incorporation of the institution.

2) Domestic refers to the country of incorporation of the client against which the institution has the CCR exposures.

3) Domestic refers to the country of incorporation of the issuer of the debt with respect to the sovereign debt (although this would then seem to conflict with domestic for cash if it is a valid option).

Background on the question

No guidance is provided on the correct categorisation of types of collateral for the purposes of assigning collateral to the different rows of the C 34.08.

Submission date
Final publishing date
Final answer

According to Article 5(5) of Regulation (EU) 2021/451: “Exposures shall be deemed to be domestic where they are exposures to counterparties located in the Member State where the institution is established.” 

Template C 34.08 of Annex 1 to the Regulation (EU) 2021/451 makes a distinction between cash in domestic currency and cash in other currencies. In this context, the same definition of ‘domestic’ can be applied when referring to the domestic currency as well as the domestic exposures. Therefore, the domestic currency refers to the currency of the country of incorporation of the institution. 

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

Disclaimer

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