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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

Application of exemption from monthly reporting frequency for AMML templates

Does the exemption from monthly reporting as mentioned in Article 16b(2) of Commission Implementing Regulation (EU) 2016/313, refer to the remittance frequency only or also to the reference dates/periods to be reported on?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2725
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 10/06/2016

Legal reference to Article 39 of Regulation (EU) No 575/2013 (CRR) in row 020 ‘Deferred tax assets that do not rely on future profitability’ in template C 04.00 of Annex II of Regulation (EU) 680/2014 (ITS on supervisory reporting),.

Is the legal reference to Article 39 CRR of row 020 in template C04.00 in Annex II of ITS on supervisory reporting correct?If yes, the name of the row 020 in template C04.00 should be amended according to the headline of Art. 39 of CRR and two sub-items 1.1.1 and 1.1.2 should be introduced which cover and discern the items in para. 1 and para. 2 of this Article.If not, the legal references of row 020 in template C04.00 should refer to Art. 39 (2) of CRR, only. In addition a new row in template C04.00 (independent from item 1 ‘total deferred tax assets’ and item 2 ‘Total deferred tax liabilities’) should be added in order to capture the information of Art. 39 (1) CRR

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2724
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Interaction between Articles 37(2) and 59(3)

Articles 37(2) and 59(3) of Directive 2014/59/EU (BRRD) appear to be incompatible.  Article 37(2) suggests that creditors bearing losses is an additional condition for the write-down in Article 59. Without this condition being met (for instance when resolution involves the sale of the whole bank to a third party), should the capital instruments be written down?  However, Article 59(3) requires the write-down of relevant capital instruments in all cases where a resolution tool is used.  Does the Commission consider that the mandatory requirement in Article 59 should be subject to the condition in 37(2) or not? Should the mandatory requirement in Article 59 BRRD be subject to the condition in 37(2) BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2720
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Providing IGFS pursuant to Article 19(3)

It is our understanding that the support which is provided without the existence of prior Intra Group Financial Support (IGFS) agreement still must meet all other conditions set by the Chapter III of Title II of Directive 2014/59/EU (BRRD) (i.e. the chapter which regulates Intra Group Financial Support). Providing IGFS pursuant to Article 19(3) is only possible if, inter alia: 22 conditions set by Article 23 BRRD are met (including the link to article 19, i.e. that each party must be acting in its own best interest); and 22 providing of such financing is notified to the supervisory authority and approved by that authority as required by Article 25. Can this be clarified? Providing IGFS without the prior IGFS agreement could mean that Articles 20, 21 and 22 BRRD would be circumvented and therefore e.g. shareholders (including minority shareholders) would lose entirely the safeguard which is embedded in Article 21 BRRD. Can it be also clarified if it is therefore necessary to apply Articles 20, 21 and 22 to the contract which would be concluded between the IGFS provider and IGFS receiver pursuant to Article 19(3).

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2718
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Instruments representing interests in shares or other instruments of ownership

Do separately transferable rights fall under the definition of instruments of ownership as defined in Article 2(1)(61) of Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2717
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Validation rule v4134_m

According to us the validation rule v4134_m is currently not correct or complete. It compares the rows 010 and 020 (DGS covered and uncovered) from table P02.01 with rows 020, 060 and 120 from table P01.02. It however, does not include the amounts in row 180 in table P01.02 (debt securities issued) although those can also be covered by a DGS (at least in Belgium).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2016_2714
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Classifications of loans to SPVs as to SME

How should the repayment of loans to SPV's (classified as SME) be considered for the purpose of Article 501 of Regulation (EU) No 575/2013 (CRR)? Should the original exposure amount be taken into account? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2711
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Hedging derivatives in country splits of FINREP

Please confirm if hedging derivatives should be reported in the country split forms of FINREP (e.g. 20.04 (assets) and 20.06 (liabilities)) or only trading derivatives should be shown.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2710
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 20/01/2022

Use of deposit guarantee scheme

Should Article 109 (1) (b) BRRD be read without the part "in proportion to the losses suffered by creditors with the same level of priority under the national law governing normal insolvency proceedings" in case there are no creditors sharing the priority rank with DGS in national law? If so, does this mean that if any tool other than the bail-in tool is applied, DGS must, in such case, always cover the amount up to the amount of losses it would have had to bear had the institution been wound up under normal insolvency proceedings without the need that other creditors (e.g. eligible depositors) cover such losses before DGS does?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2707
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Governing Law of the Instruments under Article 66.4.(a) of the BRRD

What governing law is meant by the reference to the governing law of a capital instrument under Article 66.4 (a) of the BRRD? Should the governing law of the capital instrument be the law governing law of the liability (obligations) arising under such instrument or the law applicable to the proprietary (rights in rem; ownership) issues with respect to the relevant instrument or the law of the issuer of such instrument or any other law?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2704
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Application of Article 159 on the level of total own funds

Can the excess of provisions for non-defaulted exposures be used to cover the shortfall of provisions on defaulted exposures?On the reporting side, which of the two options is the correct way for the own funds reporting (C 04.00) in the following case?Option 1 – netting in C.01.00 row 380 “(-) IRB shortfall of credit risk adjustments to expected losses“ – (1000) row 910 „IRB Excess of provisions over expected losses eligible“ – 600 Effect to the total capital – minus 400Option 2 – no netting at all (no recognition of any excess because it is on defaulted exposures) row 380 “(-) IRB shortfall of credit risk adjustments to expected losses“ – (1000) row 910 „IRB Excess of provisions over expected losses eligible“ – 0 Effect to total capital – minus 1000 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2702
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 10/03/2017

Counterparty Credit Risk, Credit Default Swaps

Can the potential future credit exposure (PFE) for short position CDS (see background) be capped to the sum of the outstanding premiums?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2701
  • Topic: Market risk
  • Date of submission:

Rollover of Funding

Treatment of Current Accounts that have available limit being utilised: Example 1 Suppose i have a current account with opening current credit balance of EUR 100 and available limit of 150 on day 1. This account will show as a current account deposit for the rollover of funding report. Assume that the owner withdraws EUR 150 during the day. Therefore, at the end of the day it has a debit balance of EUR 50. If this is the only account the bank has, how will it show in the rollover of funding? Example 2 Suppose i have a current account with opening current debit balance of EUR 70 since it utilises its limit on day 1. This account will not show in my deposits in the rollover of funding report. Assume that the owner deposits EUR 100 during the day. Therefore, at the end of the day it has a credit balance of EUR 30. If this is the only account the bank has, how will it show in the rollover of funding?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2700
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

How institution-specific buffer and Capital buffer shall be reported in target CET1, T1 and Total Capital ratios (COREP C 03.00)

Our question is related to COREP template C 03.00. How to fill in lines 080, 100 and 120 (Target CET1, T1 and total capital ratios due to Pillar II adjustments) of this template is not entirely clear for us.When a jurisdiction requests a capital conservation buffer of 2.5 % that is applicable to all banks subject to own funds requirements on top of minimum own funds requirements of 4.5%, 6% and 8% defined under CRR Article 92, shall this buffer be reflected in Target CET, T1 and Total Capital leading to respectively 7%, 8.5% and 10,5%?When a bank has an institution-specific buffer of 2.25%, shall this buffer be reflected in all target ratios, in Target CET1 only, or in none?In the end, if both of the buffers mentioned in 1) and 2) are imposed, which of following options a) to f) is the one to be applied?target CET1, T1 and TC of respectively 4.5,%, 6% and 8% (capital buffer and institution-specific buffer not taken into account)target CET1, T1 and TC of respectively 7%, 8.5% and 10.5% (capital buffer common to all banks of 2.5% taken into account)target CET1, T1 and TC of respectively 6.75,%, 6% and 8% (capital buffer not taken into account and institution-specific buffer only reflected in CET1)target CET1, T1 and TC of respectively 6.75,%, 8.25% and 10.25% (capital buffer not taken into account and institution specific buffer reflected in CET1, T1 and TC)target CET1, T1 and TC of respectively 9.25,%, 8.5% and 10.5% (capital buffer taken into account and institution specific buffer reflected in CET1 only)target CET1, T1 and TC of respectively 9.25,%, 10.75% and 12.75% (capital buffer taken into account and institution specific buffer reflected in CET1, T1 and TC)Following the requirement of a NCA that the reporting institution should maintain a specific CET 1 capital ratio, after the Supervisory review and evaluation process, what figure should banking institutions report in own funds template C 04.00, row 820 as ‘own funds requirements related to Pillar II adjustments’?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2699
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:

ECAI ratings

1) For the determination of the risk-weight applicable to an exposure, is a “Bank Deposit Rating” an issue rating as per Article 139 of the CRR? 2) For the determination of the risk-weight applicable to an exposure, should a “Bank Deposit Rating” be used instead of an “Issuer rating” for exposures to institutions which are in the form of deposits (i.e. bank deposits)? What would be the treatment in accordance with Article 139 of the CRR?3) For instance, which Moody’s rating should be used to risk-weight an exposure to an institution which is in the form of a deposit (i.e. bank deposit): - the “Issuer Rating”? - the “Bank Deposit Rating”? - the “Obligation rating”? - one of the other ratings described in Moody’s methodology? Similar considerations apply to ratings issued by other ECAIs.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2698
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 24/02/2017

Discount rates in Economic Value of Equity calculations

Is the usage of different yield curves related to the calculation of value risk measures (e.g. Economic Value of Equity) or is it related to the calculation of earnings measures (e.g. Earnings-at-Risk) or both?If an institution prefers to base the Economic Value of Equity on the risk-free swapcurve (also for its internal IRRBB management), is the institution still required to use different yield curves (including a yield curve with a credit spread curve) other than the swapcurve for Economic Value of Equity?If it is mandatory to use different yield curves for the Economic Value of Equity calculations, is the following sufficient in order to meet the paragraphs 42c and 42d: (a) to base the Economic Value of Equity (and its related risk measures such as duration of equity) on the risk-free swapcurve, and (b) to base the Earnings-at-Risk measures and the Market Value of Equity on different yield curves (including instrument/credit-specific curves)?

  • 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: 2016_2697
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:

Liquid assets valuation in case of hedging with collateralized derivatives.

Should the potential close-out of hedges of securities included within the liquidity buffer be taken into account when hedging is performed through collateralized derivatives?

  • 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: 2016_2695
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 23/09/2016

Correct reporting in COREP Credit Risk Standardised Approach (CRSA) template of repo / SFT Positions with Cash Collateral CRM Substitution Effects

The question concerns the reporting method under the Credit Risk Standardised Approach (CRSA) of (reverse) repurchase transactions and/or securities financing transactions (SFT) which are (partly) collateralised by cash on deposit. Specifically, this concerns the correct reporting of the CRM substitution effect of cash collateral received and the allocation of a 0% risk weight of the portion of the exposure covered by such collateral.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2016_2693
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 07/04/2017

Position Risk Own Funds Requirement for options positions on CIUs

Is there an own funds requirement for the non-delta risk of options on Collective Investment Undertakings which are treated for position risk in accordance with Article 348 of Regulation (EU) No 575/2013 (CRR)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 528/2014 - RTS on non-delta risk of options in the standardised market risk approach
  • ID: 2016_2692
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Computation of discount for purchased assets

How does the treatment described in the last subparagraph of Article 166(1) CRR interact with that of Article 159 CRR? How does the definition of discount/premium apply in prudential treatment of exposures?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2691
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 21/07/2017