Discussion Paper on Technical Advice on possible treatments of unrealised gains measured at fair value

The European Banking Authority (EBA) published today a discussion paper on possible treatments of unrealised gains of assets and liabilities measured at fair value, other than including them in Common Equity Tier 1 without adjustment. The input gathered from this discussion paper will assist the EBA in providing its technical advice to the European Commission on this topic. The consultation runs until 27 September 2013.

This discussion paper expresses the EBA’s preliminary views on possible treatments of unrealised gains measured at fair value and aims at gathering the stakeholders’ inputs on this topic at an early stage of the process.

In particular, this paper tables (i) the relevant criteria that should be taken into consideration in the analysis of the different policy options for the treatment of unrealised gains; and (ii) an analysis of the policy options.

Following the outcome of this consultation, the EBA will deliver its technical advice to the Commission by 1 January 2014.

Consultation process

Comments can be sent to the EBA by clicking on the "send your comments" button on the discussion page. Please note that the deadline for the submission of comments is 27 September 2013.

All contributions received will be published following the close of the consultation, unless requested otherwise.

Background

The proposed discussion paper has been developed on the basis of Article 80(4) of Regulation 575/2013 of 26 June 2013 (CRR), which requires the EBA to provide technical advice to the European Commission on possible treatments of unrealised gains measured at fair value. In its advice, the EBA shall take into account relevant developments in international accounting standards and international agreements on prudential standards for banks.