List of Q&As

Acquisition and money remittance payment service

Can a payment institution (PI) which provides a payment service of acquiring of payment transactions for its users can provide this service without holding payment account.

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5181 | Topic: Authorisation and registration | Date of submission: 20/03/2020 | Date of publication: 18/03/2022

Money Remittance

Where an entity accepts payment on behalf of a payee (such as a debt collector and the debt due to the payee is extinguished upon receipt of payment by the debt collector), is it correct to say that this does not constitute Money Remittance? (i.e. there is no need to rely on the commercial agency exemption since there is no payment service being provided). In addition, if there is no Money Remittance in this situation, can the same be said if the entity receives money into one account then pays these monies to a second account in its name,before transferring the money to the relevant payee? If this is Money Remittance, can the commercial agency exemption be relied on where an entity receives monies but then transfers them to another account held by it before then transferring to the relevant payee?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5216 | Topic: Authorisation and registration | Date of submission: 21/04/2020 | Date of publication: 18/03/2022

Access to account for FinTech Solutions that incorporate regulated services

Do FinTech companies offer payment accounts by their use of regulated services as part of their offering and are they therefore required to provide access to accounts to Third Party Providers (TPPs)?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5249 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 13/05/2020 | Date of publication: 18/03/2022

Fees on issuing eletronic money

Is charging fees on issuing of the e-money, in compliance with Article 11(1) of the Directive 2009/110/EC (E-money directive – EMD)?

Legal act: Directive 2009/110/EC (EMD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5494 | Topic: Not applicable | Date of submission: 11/09/2020 | Date of publication: 18/03/2022

Topping-up e-money accounts with voucher-based products

If an e-money institution (EMI) sells, through an external network of points of sale, pre-paid non-reloadable vouchers of a fixed value that can only be used to top-up e-money accounts opened with such EMIs, shall the sale of such vouchers be considered as distribution of e-money for the purposes of Directive 2009/11/EC (EMD2)?

Legal act: Directive 2009/110/EC (EMD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5566 | Topic: Not applicable | Date of submission: 19/10/2020 | Date of publication: 18/03/2022

Subcontractor of electronic money distributor

Does Article 3, paragraph 4 of Directive 2009/110/EC (EMD) mean that that a legal person acting as an electronic money distributor on behalf of an electronic money institution may enter into a contract with another legal person (subcontractor) for the execution of distribution and redeeming of electronic money? Or on the contrary, an electronic money distributor may not use subcontractors to distribute electronic money in the name of the electronic money institution under EU law?

Legal act: Directive 2009/110/EC (EMD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5624 | Topic: Not applicable | Date of submission: 17/11/2020 | Date of publication: 18/03/2022

AISPs and scope of application AML requirements

1. To what extend do AISPs need to comply with the obligations in relation to anti-money laundering and terrorist financing under Directive (EU) 2015/849 of the European Parliament? 2. Is a requirement for AISPs on the basis of national law and national supervisory practices to submit to the competent supervisor a description of the internal control mechanisms with regard to AML regulations compliant with PSD2 and EBA’s Guidelines on Guidelines on authorisation and registration under PSD2?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4712 | Topic: Authorisation and registration | Date of submission: 14/05/2019 | Date of publication: 11/03/2022

Mount unattended contactless device on general goods vending machines

With the limits described in Articles 11 and 16 of the Regulatory Technical Standards on strong customer authentication and secure communication under Directive 2015/2366/EU (PSD2), could a vendor mount an unattended "contactless only" device without pinpad on a general goods vending machine?

Legal act: Directive 2015/2366/EU (PSD2)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication

ID: 2020_5288 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 03/06/2020 | Date of publication: 11/03/2022

Range of application of the LGD regulatory floor for the calculation of own funds requirements at individual and consolidated levels

Shall the LGD regulatory floor be applied at the territory level of the Member state to exposures secured by property located in the territory of that Member state (Article 164(7) CRR) for the calculation of own funds requirements at any level, i.e. individual and/or consolidated level?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2019_4859 | Topic: Credit risk | Date of submission: 07/08/2019 | Date of publication: 18/02/2022

Pending credit offers

Can pending credit offers (e.g. offers to provide credit to retail clients that have not been accepted yet) qualify as committed credit facilities for the purpose of Article 424 CRR (e.g. Article 424(2) CRR in case of credit offers to retail clients) and Article 31 LCR DA (e.g. Article 31(3) LCR DA in case of credit offers to retail clients), if such pending credit offers would be irrevocable, binding on the creditor and considered "commitments qualifying for the creditor as agreements to lend" for the purpose of the credit risk framework (in particular Annex I of the CRR), in accordance with EBA Q&A 2017_3376?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement

ID: 2019_4985 | Topic: Liquidity risk | Date of submission: 05/11/2019 | Date of publication: 11/02/2022

Weighting of EVE gains of domestic currency by a factor of 50% when calculating the aggregate EVE change for each interest rate shock scenario

When calculating the aggregate EVE change for each interest rate shock scenario, should EVE gains of the domestic currency (i.e. EUR in most cases) be weighted by a factor of 50% or should such gains be weighted by a factor of 100%?

Legal act: Directive 2013/36/EU (CRD)

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2015/08 - Guidelines on the management of interest rate risk arising from non-trading activities

ID: 2020_5419 | Topic: Supervisory review and evaluation (SREP) and Pillar 2 | Date of submission: 07/08/2020 | Date of publication: 11/02/2022

Applicability of fix amount dividend policy to mutuals, cooperative societies, saving institutions and similar institutions

Is Q&A 4731 applicable to mutuals, cooperative institutions, savings institutions and similar institutions?

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: 2021_5787 | Topic: Own funds | Date of submission: 19/03/2021 | Date of publication: 11/02/2022

Gamma correlations regarding curvature risk in low and high scenario

To calculate the gamma correlation to be used for the curvature risk in the low and high scenarios, should institutions at first square the gamma correlation used for the delta risk and then apply the formulas provided for in Article 325h CRR or vice versa?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2021_6122 | Topic: Market risk | Date of submission: 29/07/2021 | Date of publication: 11/02/2022

Simultaneous applicability of non-deduction exemptions under Articles 48 and 49 CRR regarding equity exposures on insurance holdings where an institution has a significant investment

For an institution that has received permission to apply Article 49(1) CRR, has a significant investment below or equal to the threshold indicated in Article 48(1) and 48(2) (exempted from being deducted from Common Equity Tier 1 according to Article 49(1), are the amounts of holdings in insurance undertakings, to be risk-weighted at 250% according to Article 48(4) and the amounts of such holdings that are above this threshold risk-weighted in line with Article 49(4)?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5664 | Topic: Own funds | Date of submission: 17/12/2020 | Date of publication: 11/02/2022

Treatment of Repo and Reverse repo with bilateral early termination option

A supervised institution has entered a reverse repo with a financial counterparty which features an early termination option exercisable at the supervised institution’s discretion. In order to be able to map the reverse repo on the option date for the purpose of NSFR - RSF calculation, how are the supervised institution and the competent authorities supposed to assess the reputational factors that may limit the institution’s ability to exercise the option? [ref. Article 428q 3.]

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5588 | Topic: Liquidity risk | Date of submission: 29/10/2020 | Date of publication: 11/02/2022

Calculation of NPV loss in case of (internal) refinancing

Which NPV loss should be taken in order to calculate the NPV loss if the 1% threshold is breached and the forborne loan contract should be placed in default?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/07 - Guidelines on the application of the definition of default under Article 178 CRR

ID: 2021_6045 | Topic: Credit risk | Date of submission: 21/06/2021 | Date of publication: 11/02/2022

Assignment to grades or pools

Do the requirements in Article 171(2) CRR refer to the Estimation of Risk Parameters or to the Application of Risk Parameters?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2021_5761 | Topic: Model validation | Date of submission: 03/03/2021 | Date of publication: 11/02/2022

Application of Required Stable Funding on the basis of Guarantees Received

Where a loan is made to a non-financial corporate, and the loan is guaranteed by a financial counterparty such that the credit exposure on the loan is viewed by the firm as an exposure to the guarantor (financial counterparty), can the 10% RSF applicable under CRR Article 428v be applied to such a transaction?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

ID: 2020_5574 | Topic: Liquidity risk | Date of submission: 21/10/2020 | Date of publication: 11/02/2022

Aggregation of separate client exposures for a transaction with underlying credit risk exposure

Is it necessary to group and aggregate all separate client exposures from a single transaction with underlying credit risk to one exposure and, as such, treat this aggregated separate client as a single client exposure?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 1187/2014 - RTS for determining the overall exposure to a client or a group of connected clients in respect of transactions with underlying assets

ID: 2021_5746 | Topic: Credit risk | Date of submission: 17/02/2021 | Date of publication: 11/02/2022

Use of UTP triggers when default definition is on facility level

If an obligor has a mortgage loan and other loans (like credit card, private loan, business loans etc.) where definition of default is on the facility level, and the institution has certain obligor level triggers (bankruptcy, death, divorce etc.) and the obligor defaults on his mortgage (due to an obligor level trigger), should there be an automatic cross default on the other loans as well. If the opposite happens, i.e. the obligor defaults on one of the other loans (also due to an obligor level trigger) should the mortgage be defaulted as well?

Legal act: Regulation (EU) No 575/2013 (CRR)

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/07 - Guidelines on the application of the definition of default under Article 178 CRR

ID: 2020_5592 | Topic: Credit risk | Date of submission: 02/11/2020 | Date of publication: 11/02/2022