List of Q&As

Definition of financial institution and mixed activity insurance holding company

Can a mixed-activity insurance holding company (MAIHC) that has at least one subsidiary credit institution pursuant to Article 4(1)(1) CRR qualify as a financial institution pursuant to Article 4(1)(26) CRR?

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

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

ID: 2023_6875 | Topic: Own funds | Date of submission: 30/08/2023

Limits to large exposures to a client or group when part of the customer's or group's exposures are covered by the consent referred to in Article 500a

What is a joint limit to the entire group and to exposures in all currencies in a situation where part of the exposure is subject to prior approval from the competent authority issued under Article 500a CRR?  

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

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

ID: 2023_6850 | Topic: Large exposures | Date of submission: 24/07/2023

Q&A 2022_6520 F 46 EBA_v1226

Where to recognise foreign exchange differences for 0010 (Capital) and c0020 (Share Premium)?

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_6834 | Topic: Supervisory reporting - FINREP (incl. FB&NPE) | Date of submission: 05/07/2023

Clarification on EBA provisions for treatment of Non-Stable and Non-Core NMDs in SOT on NII.

Can banks, in their internal measurement methodologies for calculating the NII SOT baseline scenario, for renewed Non-Stable/Non-Core NMDs assume repricing at the current market interest rate without any commercial margin, in order to avoid stabilisation of NII on unstable funds? Is this approach in line with EBA/GL/2022/14 and permitted under EBA/RTS/2022/10?

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

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2022/14 - Guidelines on interest rate risk arising from non-trading book activities

ID: 2023_6830 | Topic: Interest Rate Risk for Banking Book (IRRBB) | Date of submission: 24/06/2023

Trusted Beneficiaries

Please clarify whether under Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication (hereinafter: RTS on SCA & CSC) is it allowed to use the same SCA element to authorize a payment and at the same time (using the same session ID) approve (technically using by a checkbox) the payee as a trusted beneficiary? If it is allowed, the payment service user (hereinafter: PSU) shall be informed (prior to authorisation) by an approval SCA element (SMS) about the payment execution and about modifying the list of the trusted beneficiaries as well?

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: 2023_6827 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 14/06/2023

Template F 16.01 validation rule v5693_s

Is it possible to report negative income from General Government debt securities in F 16?

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_6825 | Topic: Supervisory reporting - FINREP (incl. FB&NPE) | Date of submission: 09/06/2023

Transfers to PPE

We have a collateral obtained some years back that was classified as Commercial Immovable property. In the current year the Group decided to transfer this property to PPE and use it for its own branches.  In table 25.1 the below rows exist. Where can we put the transfer (therefore outflow) mentioned above? Outflow for which cash was collected Outflow with replacement by financial instrument Outflow due to negative changes in value

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_6823 | Topic: Supervisory reporting - FINREP (incl. FB&NPE) | Date of submission: 07/06/2023

Exemption from strong customer authentication

Do the revisions to Art.10 set out in Commission Delegated Regulation (EU) 2022/2360 of 3 August 2022 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2018/389 as regards the 90-day exemption for account access mean that a payment service user or account information service provider is now limited to accessing only the account balance OR the transaction details for the last 90 days when availing of the revised exemption?

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: 2023_6820 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 06/06/2023

Application of the behavioural assumption of a 5-year cap for non-maturity deposits

Regarding paragraph 111 of the Guidelines on Interest Rate Risk in the Banking Book (EBA/GL/2022/14), and in relation to Article 98(5a) of the CRD, could you please confirm that the behavioural assumption of a 5-year cap on the average repricing of non-maturing deposits should not be understood as a modelling requirement neither for the Supervisory Outlier Tests (SOT) nor for the ongoing management of interest rate risk but as an alternative and additional measure of interest rate risk that complements the existing IRBB management framework?

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

COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2022/14 - Guidelines on interest rate risk arising from non-trading book activities

ID: 2023_6807 | Topic: Interest Rate Risk for Banking Book (IRRBB) | Date of submission: 22/05/2023

Bucket definition (PD range) in the ITS on supervisory reporting

Does Q&A 6718 also modify the definition of the row 'PD Range'?

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_6803 | Topic: Supervisory reporting - COREP (incl. IP Losses) | Date of submission: 12/05/2023

Should collateral received via securities financing transaction that is subsequently sold short be reported as encumbered in F32.02? Follow-up question on 2014_946 related to short positions in Asset Encumbrance

As clarified in Q&A 946 “Selling collateral received (short sale) does not give rise to encumbrance”. Two scenarios are addressed under this Q&A and further clarity is sought on scenario one and the reporting of collateral received in template F 32.02 where such collateral is subsequently sold short. Is it the intended view that within F 32.02 where an institution receives collateral, against cash, and then uses that collateral received to cover a short position, that the received collateral should be reported as unencumbered in F 32.02, column 040?  If so, can you please provide supporting rationale that selling collateral received (short sale) does not give rise to encumbrance given that once the collateral is sold short, it is not available for re-use by the 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: 2023_6800 | Topic: Supervisory reporting - Asset Encumbrance | Date of submission: 11/05/2023

Multi-licensed entity capital requirement

Whether a payment institution that also has a crowdfunding license must meet the capital requirements of both authorizations in aggregate?

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

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

ID: 2023_6790 | Topic: Authorisation and registration | Date of submission: 03/05/2023

Reporting of marginal deposit facility amounts (overnight deposits with the central bank) in templates C72 and C74.

It is not clear how the amounts in Central Banks regarding the marginal deposit facility should be treated in the calculation of the LCR and reported in C72 and C74.

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: 2023_6789 | Topic: Liquidity risk | Date of submission: 28/04/2023

Discrepancy between definition of ‘investment holding company’ and ‘consolidated situation.’

Could a financial institution the subsidiaries of which are mainly tied agents or ancillary services undertakings, but which also has at least one investment firm as subsidiary, be considered an  investment holding company as referred to in Article 4(1)(23) of the IFR?

Legal act: Regulation (EU) No 2019/2033 (IFR)

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

ID: 2023_6779 | Topic: Prudential consolidation | Date of submission: 13/04/2023

Exchange rate mark-ups part of 'all charges payable'/'currency conversion charges'

Is an exchange rate mark-up (the difference between the interbank rate and the exchange rate offered by the PSP to its PSUs) to be considered as part of ‘all charges payable’ as per PSD2 and the ‘currency conversion charges’ as per CBPR2 prior to the initiation of the payment? How should PSPs disclose this in the payment flow? Article 45 of the PSD2 sets out the information and conditions that payment service providers (PSPs) need to provide to the payment service users (PSUs). Notably, Article 45 (1)(c) and (d) states that ‘all charges payable by the payment service user to the payment service providers and, where applicable, a breakdown of those charges’ as well as ‘the actual or reference exchange rate to be applied to the payment transaction’ should be shown to the PSUs.  The CBPR2 builds upon the requirements set out by PSD2, adding an additional layer of disclosures for cross-border payments within the EU.  Concretely, Article 5(1) of the CBPR2 refers to the provisions within Article 45(1) of PSD2 -  "When a currency conversion service is offered by the payer’s payment service provider in relation to a credit transfer, as defined in point (24) of Article 4 of Directive (EU) 2015/2366, that is initiated online directly, using the website or the mobile banking application of the payment service provider, the payment service provider, with regard to Article 45(1) and Article 52, point (3), of that Directive, shall inform the payer prior to the initiation of the payment transaction, in a clear, neutral and comprehensible manner, of the estimated charges for currency conversion services applicable to the credit transfer. Furthermore, Article 5(2) of CBPR2 further explains the necessary charges that need to be shown to the payer -  “Prior to the initiation of a payment transaction, the PSP shall communicate to the payer, in a clear, neutral and comprehensible manner, the estimated total amount of the credit transfer in the currency of the payer’s account, including any transaction fee and any currency conversion charges. The payment service provider shall also communicate the estimated amount to be transferred to the payee in the currency used by the payee.”    

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

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

ID: 2023_6777 | Topic: Other topics | Date of submission: 11/04/2023

Clarification on treatment of repurchase agreements and reverse repurchase agreement, as well as securities or commodities lending/borrowing of the banking book under standardised approach of credit risk.

Shall the transferor of an operation like the one described below include for credit risk capital requirements purposes both the exposure value of the securities sold (asset item) and the financing position (even if it is a liability item), or just the asset item of the securities sold? According to Article 111(2) CRR the exposure value of any repurchase transaction shall be included and be calculated either in accordance with Chapter 4 or Chapter 6 of Title II: does it also refers to the financing position of the transferor (even if it is a liability item)? What is the correct treatment for the financing position of the transferor? are securities also to be included as an exposure value in case the Financial Collateral Simple Method is used?

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

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

ID: 2023_6774 | Topic: Credit risk | Date of submission: 11/04/2023

App to app redirection with biometrics for PIS

Question: Are ASPSPs required to offer redirected authentication with biometrics to users accessing their payment accounts through an AISP or initiating a payment through a PISP, if they offer redirected authentication with biometrics to users accessing accounts or initiating payments directly via the ASPSP?

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: 2023_6767 | Topic: Strong customer authentication and common and secure communication (incl. access) | Date of submission: 31/03/2023

Scope of Article 22(1) CRR

Do undertakings subject to Article 22(1) CRR Sub-consolidation in case of entities in third countries have to comply with Part Two of the CRR in full or shall they only comply with Articles 89, 90 and 91 of Part Two?

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

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

ID: 2023_6765 | Topic: Own funds | Date of submission: 30/03/2023

Interplay between Articles 49(3) and 72e(5) of the CRR

Does the exemption from the requirement to deduct holdings of own funds instruments under Article 49(3) of the CRR also apply with regard to the deductions set out in Article 72e(5)?

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

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

ID: 2023_6763 | Topic: Own funds | Date of submission: 30/03/2023

Clarification of scope of population for Corporate Bonds

In accordance with the instructions for row 0060 of template C 34.08 in Annex II of Commission Implementing Regulation (EU) 2021/451, there is no specific definition of what the scope of corporate bonds should include. Could you, therefore, please confirm if this should include all bonds issued by Institutions and Corporate entities and if it would also include securitisation bonds issued by these entities as well or not or, alternatively, would only non-securitisation instruments issued by entities which would qualify for the corporates credit risk exposure class under Article 112(g) of the CRR be included? We would also request clarification on securitisation bonds, whether those issued by government agencies e.g., Fannie Mae should be reported in row 0050.

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_6755 | Topic: Supervisory reporting - COREP (incl. IP Losses) | Date of submission: 21/03/2023