Single Rulebook Q&A

Question ID: 2016_2633
Legal act : Regulation (EU) No 575/2013 (CRR) as amended
Topic : Supervisory reporting
Article: 99
Paragraph:
Subparagraph:
COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
Article/Paragraph : Funding plans of credit institutions Recommendation A4 of ESRB/2012/2
Type of submitter: Credit institution
Subject matter : Validation rules EBA_V4399 and EBA_V4400 warning on the tables P 02.04 and P 02.05
Question:

The Annex I of the "Guidelines on harmonised definitions and templates for funding plans of credit institutions under recommendation A4 of ESRB/2012/2" contains disclosure tables for pricing of Loan Assets "Table 2B1 (P 02.04)" and pricing of Deposit Liabilities "Table 2B2 (P 02.05)". Validation rules EBA_V4399 and EBA_V4400 check if the figures submitted are greater than or equal to zero. The "Guidelines on harmonised definitions and templates for funding plans of credit institutions under recommendation A4 of ESRB/2012/2" defines the data to submit as follows: - The projection of high-level yields on assets, with a 1-year horizon. Firms should report the all-in yield received/paid and should not report a spread. - Projection of high-level costs of funding, with a 1-year horizon As this tables aim to provide interest rates and as interest rates could be negative, we think that the validation rules V_4399 and V4399 should be adjusted.

Background on the question:

Validation rule EBA_V4400 failure when the funding plan report was submitted

Date of submission: 18/02/2016
Published as Final Q&A: 05/10/2018
EBA answer:

Given the current market conditions where negative interest rates apply in practice, the validation rules v4399_s and v4400_s will be adapted to take into account negative interest rates. 

Status: Final Q&A
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