Question ID
2013_608
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
Article
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Table F 05.00
Type of submitter
Credit institution
Subject matter
Cash and cash balances at central banks’
Question

German Question (Deutsche Frage): In dem ITS-Update vom 26.7.2013 wird in dem Dokument “EBA FINAL draft Implementing Technical Standards.pdf” auf Seite 51 folgende Aussage getroffen: “On the basis of the feedback on the definition and use of ‘cash and cash equivalents’, the EBA decided to change the item to ‘cash and cash balances at central banks’, in line with the practice followed by banks. In addition to the instructions provided in the ITS examples will be provided in additional implementation guidance on the EBA website.“ Diese Aussage scheint inkonsistent zu der vorgenommen Zuordnung des Postens “other demand deposits” in Tabelle F 05.00 (alt F 09.00) zu sein und insofern gerade nicht der Praxis der Bilanzierung der Barreserve bei Kreditinstituten zu entsprechen. Wie ist hiermit umzugehen? Daneben ist eine „additional implementation guidance on the EBA website” nicht zu finden. Der letzte Stand datiert diesbezüglich aus 2009. Wann ist mit einem entsprechenden Dokument zu rechnen? English Question: In the ITS Update of 26.7.2013, the following statement appears in the document ‘EBA FINAL draft Implementing Technical Standards.pdf’ on page 51: ‘On the basis of the feedback on the definition and use of “cash and cash equivalents”, the EBA decided to change the item to “cash and cash balances at central banks”, in line with the practice followed by banks. In addition to the instructions provided in the ITS, examples will be provided in additional implementation guidance on the EBA website.’ This statement seems to be inconsistent with the assignment that was already carried out of the item ‘other demand deposits’ in table F 05.00 (prev. F 09.00), and is therefore not in line with the practice of balancing the cash reserve in credit institutions. How should this be dealt with? Moreover, the ‘additional implementation guidance on the EBA website’ cannot be found. The last update on this is from 2009. When can the relevant document be expected?

Background on the question

Inconsistency.

Submission date
Final publishing date
Final answer

German Answer (Deutsche Antwort):

Im Konsultationspapier war die Position "Cash and Cash equivalents " (Barmittel und Barmitteläquivalente) aufgeführt, die in der FinRep-Bilanz gesondert ausgewiesen wird. Die Position umfasste sowohl "Cash " (Barmittel) als auch "Cash equivalents " (Barmitteläquivalente). "Cash " wiederum beinhaltete "Cash on hand " (Kassenbestände, also Münzen und Scheine) sowie "Demand Deposits " (Sichteinlagen, also täglich fällige Saldoforderungen bei Kreditinstituten). "Cash equivalents " entsprach der Definition aus IAS 7 und könnte potenziell u. a. Investitionen in Schuldverschreibungen umfassen.

Auf Grundlage der eingegangenen Rückmeldungen wurde vereinbart, stattdessen die Position "Cash and cash balances at central banks " (Kassenbestand und Guthaben bei Zentralnotenbanken) zu verwenden. "Cash equivalents " wurde daher durch "Cash balances at central banks " ersetzt ( "Cash " blieb unverändert stehen). Anhang V der Verordnung (EU) Nr. 680/2014 13 TDS für die aufsichtlichen Meldungen der Institute (TDS) des Entwurfs der technischen Durchführungsstandards für das bankaufsichtliche Meldewesen der Institute enthielt die Beschreibung des Inhalts der drei Komponenten von "Kassenbestand und Guthaben bei Zentralnotenbanken ":

  1. "Kassenbestand " (Banknoten und Münzen) in Teil 2 Absatz 1;
  2. "Sichteinlagen " (täglich fällige Saldoforderungen bei Kreditinstituten) in Teil 2 Absatz 3;
  3. "Guthaben bei Zentralnotenbanken " (schließt nur täglich fällige Saldoforderungen ein) in Teil 2 Absatz 2.

Diese Anweisungen werden durch die Definition von "täglich fällige Saldoforderungen " in Anhang V Teil 2 Absatz 41 Buchstabe a der technischen Durchführungsstandards ergänzt.

Hinsichtlich der in der Frage erwähnten "additional implementation guidance " (zusätzlichen Durchführungsanleitung) ist anzumerken, dass diese auf der Website der EBA in der Rubrik "Single Rulebook Q&A " zu finden ist. Antworten auf die Fragen zu den technischen Durchführungsstandards für das bankaufsichtliche Meldewesen der Institute können Beispiele entweder im Antworttext oder als separaten Anhang aufführen.

 

English Answer:

The consultation paper included the item 'Cash and Cash equivalents ' on the face of the FINREP balance sheet. This item comprised 'Cash ' and 'Cash equivalents '. In turn, 'Cash ' comprised 'Cash on hand ' (coins and banknotes) and 'Demand Deposits ' (balances receivable on demand with credit institutions). 'Cash equivalents ' followed the definition in IAS 7 and could potentially include, among other items, investments in debt securities.

On the basis of the feedback received, it was agreed to use the item 'Cash and cash balances at central banks ' instead. Therefore, 'Cash equivalents ' was replaced by 'Cash balances at central banks ' ( 'Cash ' remaining the same). In Annex V of the Regulation (EU) No 680/2014 13 ITS on Supervisory ReportingDraft ITS on Supervisory reporting (ITS), the description of the content of the three components of 'Cash and cash balances at central banks ' could be found:

  1. 'Cash on hand ' (coins and banknotes) in paragraph 1 of Part 2;
  2. 'Demand Deposits ' (balances on demand with credit institutions) in paragraph 3 of Part 2;
  3. 'Cash balances at central banks ' (including exclusively balances on demand at central banks) in paragraph 2 of Part 2.

These instructions are completed with the definition of 'balances receivable on demand ' in Annex V. Part 2. Paragraph 41(a) of the ITS.

Regarding the additional implementation guidance mentioned in the question, it could be found in the EBA website in the section 'Single Rulebook Q&A '. Reponses to the questions related to the ITS on Supervisory reporting may include examples either in the text of the answer or as a separate attachment.

 

*As of 1/8/2014 the content of this answer was modified to reflect the publication of the final ITS on supervisory reporting of institutions in the Official Journal of the European Union. As a result, the references to the ITS were updated and the disclaimer deleted. For reasons of transparency, revisions are highlighted in track changes.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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