Q&A 2022_6520 F 46 EBA_v1226

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

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?

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

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?

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?

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.

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.”    

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?

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)?