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Q&As refer 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.

Please note that the Q&As related to the supervisory benchmarking exercises have been moved to the dedicated handbook page. You can submit Q&As on this topic here.

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List of Q&A's

Goodwill included in the valuation of significant investments

1. For the purposes of Article 37(b) CRR, are the significant investments of the institution limited to the significant investments in financial sector entities (FSE) or should they include all significant investments (i.e. also significant investments in entities that are not financial sector entities)? 2. Should Article 37(b) CRR be applied only when the significant investments outside the prudential perimeter are valued for prudential purposes using the equity method or should it be applied also when the significant investments are valued for prudential purposes at historical cost? 3. Should the amount to be deducted pursuant to Article 37(b) CRR be limited to goodwill or should it include also the other intangible assets included in the valuation of the significant investments of the institution?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3929
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Fair value changes due to changes in cross-currency basis spread eligible for CET1 capital (cost of hedging)

Are fair value changes due to changes in cross-currency basis spreads recognized in ‘other comprehensive income’, as referred to under IFRS 9 as the ‘cost of hedging’, eligible for CET1 capital under the CRR regulation?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3715
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Deduction of deferred tax assets

Regarding the phasing-in percentages established in Article 478(2) of the CRR, how should the deduction amount  be calculated during the transitional period when part of the stock of DTAs existed prior to 1 January 2014?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3224
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Calculation of the amount of holdings of own Common Equity Tier 1 instruments on the basis of the net long position

How should the condition in Article 42 a) i) “(i) the long and short positions are in the same underlying exposure and the short positions involve no counterparty risk” be applied when there are long and short positions on the same underlying reference with the same counterparty under the same master netting agreement ?Are the single net amounts fixed by such contracts to be considered rather than the gross amounts? Explanatory note: The master netting agreement we are considering complies with the conditions required under CRR (Article 206)

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4904
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Calculation of the amount of holdings of own Common Equity Tier 1 instruments on the basis of the net long position

Could it be assumed that short positions maintained with a Qualifying Central Counterparty do not involve counterparty risk according to Article 42 a) i) CRR and thus be netted for the purposes of the calculation of the amount of holdings of own Common Equity Tier I instruments to be deducted under point (f) of Article 36(1)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4903
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Own funds instruments passed on to employees of the institution as part of their remuneration

If an authority has already granted permission in advance to buy a certain predetermined amount of shares for “discretionary trading activity over treasury shares” and those shares are the ones that are passed on to employees as part of their remuneration. Under Article 29 of Commission Delegated Regulation 241_2014 is there needed a separate permission to pass on to employees those own shares?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2019_4902
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR

When does a transaction that falls under the provisions on the minimum loss coverage of non-performing exposures under Article 469a, subparagraph 2 CRR become non-performing within the meaning of Articles 47a to 47c CRR? From the day on which the risk position increases due to a forbearance measure (e.g. 01.06.2019) or from the day on which the risk position actually became non-performing (e.g. 01.12.2018)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4829
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Moment of deduction for cooperative shares

In the case of a cooperative institution, should deductions from own funds with regard to a permission to reduce CET1 capital in accordance with Article 77(a) of Regulation (EU) No 575/2013 (CRR) and Article 32 of the RTS on Own Funds be made right after the permission from the competent authority (CA) is granted (as laid down in Article 28 (2) of the RTW on Own Funds ) or could it be later for instance at the time when the institution receives the notification of the intention to redeem from the shareholder?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2019_4719
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Prudential consolidation: definition of "undertaking" and "dominant influence"

For the purpose of the application of CRR Article 18(1) and CRR Article 18(8) could you clarify whether:- the term “undertaking” means necessarily “entity” having a legal personality;- the term “dominant influence” has to be understood in a broader sense than within the meaning of the Article 1(1) of the Directive 83/349/EEC;

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4716
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022