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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.

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List of Q&A's

One Percent threshold to report an institution in the TOP 10

Should the institution report the section 1 of C67.00 based of 1% of total liabilities or based of 1% of total liabilities reported in section 1? In other words, based on Q&A 2018_4209 which has been published after the release of DPM 3.00 will you updated AMM ITS?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6664
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as Rejected Q&A: 04/05/2023

Transitional provisions under the IFR (Regulation 2019/2033)

How should the “twice the relevant own funds requirement pursuant to Chapter 1 of Title I of Part Three of Regulation (EU) No 575/2013”, referred to in article 57(3)(a) of Regulation 2019/2033 be understood?

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_5808
  • Topic: Prudential consolidation
  • Date of submission:
  • Published as Rejected Q&A: 25/04/2023

Fixed overheads - deduction of expenses related to exchange rate differences for money belonging to clients and for which investment firms provide custody services according to MIFID

Can expenses related to exchange rate differences, only for the money (with amounts in foreign currency) belonging to the clients and for which the investment firm provides custody services according to MiFID, also be deducted from the total expenses even though they are included under total expenses in accordance with the relevant accounting framework?

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6738
  • Topic: Fixed overheads requirement
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Definition of trading book according to new IFD/IFR

Should the proprietary positions of the investment firm in the financial instrument in order to invest own funds of the investment firn which are held until maturity (for long-term) be recorded in the non-trading book and thus for such cases the investment firm would not need to have licence for dealing on own account?     

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6463
  • Topic: Capital requirements
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Definition of NPL Ratio for EBA Dashboard and Disclosure

Please clarify, whether or not this inconsistency between NPL ratio definitions in a) EBA Dashboard and b) Disclosure is intended, and which definition is used by EBA for classifying an institute as a “High NPL Bank” (5% threshold).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6215
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Regular buy and sell activity between ALM/Treasury departments and internal market making desks (Trading Book)

Are transactions between ALM/Treasury (identified as Banking Book) and an internal market making desk (Trading Book) in the scope of Article 104a (Re-classification of a position) Regulation (EU) No 575/2013 of the European Parliament and of the Council (CRR), even when such transactions fulfill the following conditions: They are conducted on an arm’s length basis (the market making desk in the Trading Book is considered as any other client, identical to external counterparties); The purpose of such transactions is to pursue prudential objectives (such as market testing of the HQLA buffer, inter alia).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6769
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Clarification on use of prearranged and highly reliable funding arrangements

If a CSD-banking service provider has routine credit at a central bank of issue in the EU, are the requirements in Article 11, paragraph 1, subparagraphs (b) and (d) simultaneously met?

  • Legal act: Regulation (EU) No 909/2014 (CSDR) - only RTS 2017/390
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2017/390 - RTS on prudential requirements of CSDs (CSDR-related)
  • ID: 2023_6733
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 21/04/2023

Clarification on the need for a prearranged and highly reliable funding arrangement to liquidate collateral referred to in Article 11, paragraph 2

What type of arrangement is required under Article 11, paragraph 2, subparagraph (c), point (i)?

  • Legal act: Regulation (EU) No 909/2014 (CSDR) - only RTS 2017/390
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2017/390 - RTS on prudential requirements of CSDs (CSDR-related)
  • ID: 2023_6732
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 21/04/2023

Reporting outflows from covered bonds and asset-backed securities in COREP template C 73.00

In which row of template C 73.00 should institutions report the outflows from debt securities such as covered bonds or asset-backed securities issued by the reporting institution?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6443
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Promotional loans that constitute claims on central governments, regional governments, local authorities or public sector entities

As per article 429a (1), paragraph (d) of CRR, only claims on central governments, regional governments, local authorities or public sector entities in relation to public sector investments and promotional loans are exempt from Leverage ratio exposure where the institution is a public development credit institution, the exposures arising from assets that constitute claims on central governments, regional governments, local authorities or public sector entities in relation to public sector investments and promotional loans. In C40 report, ITS mentions that this part of the reporting collects data on an alternative treatment of derivatives, SFTs, off-balance sheet items, exempted public sector investments and exempted exposures to promotional loans. In C40 report also only exempted exposures to promotional loans are to be reported. That is claims on central governments, regional governments, local authorities or public sector entities only are to be reported in C40 report also. Row 0350 of C40 report requirement Promotional loans - Claims on non-financial corporations - Accounting balance sheet value Where the institution is a public development credit institution, the accounting balance sheet value under the applicable accounting framework of assets that constitute claims on non-financial corporations in relation to promotional loans Row 0360 of C40 report requirement Promotional loans - Claims on households - Accounting balance sheet value Where the institution is a public development credit institution, the accounting balance sheet value under the applicable accounting framework of assets that constitute claims on households in relation to promotional loans  As the only exposures to promotional exempt are to be reported in C40 also. However these two rows 0350 and 0360 of C40 report requirements are not in cosistence with the article 429a (1) (d) and (e) also. Please clarify.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6550
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

SFTs exposure value on template C 48.02

What exposure value should be reported for a repurchase transaction on template C48.02 where the provided security is retained on the  balance sheet?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2023_6689
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Validation error v4390_s

Validation rule v4390_s does not allow the reporting of negative amounts in F01.01 for all row items. We report however a negative amount in the Funding Plan reporting under 'other assets' (F01.01 row 211) which is due to a negative amount in the FINREP reporting under 'Fair value changes of the hedged items in portfolio hedge of interest rate risk' (F01.01 row 250) which is due to the application of IAS 39 89A (a). Can the validation rule be adapted, or guidance be provided with regard to the treatment in case of a negative amount in the FINREP reporting under 'Fair value changes of the hedged items in portfolio hedge of interest rate risk' (F01.01 row 250)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/05 – Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2 - repealing EBA/GL/2014/04
  • ID: 2023_6751
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Incorrect validation rules related to Funding Plan

We observed that the following validation rules are causing error in submission to NBB Onegate via dissemination exchange and thus being refused to be accepted in the system. 1) eba_v6230_m 2) eba_v08995_m 3) eba_v08991_m

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2023_6754
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Requirement for STS securitisations to involve a securitisation special purpose entity (SSPE) which acquires title to the underlying exposures by means of a true sale or assignment or transfer with the same legal effect

Can securitisations where the seller sells the underlying exposures directly to the funding party (typically a bank) rather than involving an SSPE also qualify as 'simple, transparent and standardised’ (STS) securitisations?

  • Legal act: Regulation (EU) No 2017/2402 (SecReg)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6734
  • Topic: Simple Transparent and Standardised securitisation
  • Date of submission:
  • Published as Rejected Q&A: 14/04/2023

Prudential filters to the fair value reserves associated to Cash Flow Hedge

Does the prudential filter established in CRR Article 33(1) apply only to unrealised capital gains and losses?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6580
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 14/04/2023

Confirmation of compliance with Article 429b(3c) concerning the interest calculation in Notional Cash Pooling

Can a Notional Cash Pooling which charges or pays interest by using an algorithm which takes into consideration each single current account belonging to the Notional Cash Pooling structure, be considered compliant with art.429b. paragraph 3c of CRR2?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6573
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 14/04/2023

QUALIFICATION OF INVESTMENT IN FOREIGN TRADING SUBSIDIARY

Could the EBA confirm that a long position in foreign currency, say in USD (while the Bank’s reporting currency is EUR), stemming only from the Bank’s investment in a trading subsidiary in the US, can be qualified as structural?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2020/09 - Guidelines on the treatment of structural FX under Article 352(2) of CRR
  • ID: 2023_6758
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 13/04/2023

QUALIFICATION OF INTERNAL TRANSACTIONS AS "STRUCTURAL"

When considering internal financing in currencies between the Bank’s prudential banking book (“BB”) and the trading book (“TB”), aiming at balancing the balance sheet of both BB and TB, we would be keen to know whether the “banking book leg” of such refinancing could be eligible to the exemption pursuant to art. 352(2) CRR? In particular, could such positions be assumed to hedge/incentivize the CET1 ratio against changes in FX rates while they stem from internal financings between the BB and the TB of the same entity? Could such positions be assumed to be structural?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2020/09 - Guidelines on the treatment of structural FX under Article 352(2) of CRR
  • ID: 2023_6757
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 13/04/2023

Calculation of the relative threshold in case specific cases.

How should be calculated the relative threshold for a client who has fees or quotes in default arising from off balance sheet exposures?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/171 - RTS on the materiality threshold for credit obligations past due
  • ID: 2021_6025
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 04/04/2023