Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR) as amended
Supervisory reporting - FINREP (incl. FB&NPE)
Annex V
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Annex V, Part 1, Paragraph 6, Article 35
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Counterparty breakdown by sector – definition of other financial corporations and non financial corporations

Article 35 in Annex V of Finrep defines 'other financial corporations' as all financial corporations and quasi-corporations other than credit institutions such as investment firms, investment funds, insurance companies, pension funds, collective investment undertakings, and clearing houses as well as remaining financial intermediaries and financial auxiliaries; ‘Non-financial corporations’ are corporations and quasi-corporations not engaged in financial intermediation but principally in the production of market goods and non-financial services according to the ECB BSI Regulation. Subsidiaries set up within non – financial group to issue debt instruments or to perform liquidity management activities within the group should be considered as ‘other financial corporations’ or ‘Non-financial corporations’?

Background on the question:

The definition of these subsidiaries for Finrep purposes could create mismatches with other regulatory definitions such as Liquidity risk definition of financial customers

Date of submission:
Published as Final Q&A:
EBA Answer:

In line with the Q&A 2018_4282 , counterparty breakdown in FINREP, described in the Annex V. Part 1, par. 35 (par. 42 in the version 2.7 of the reporting framework), is consistent with the classification in COREP.

ECB Regulation 2013/33 is used in FINREP, as far as counterparty sector is concerned, only to define the ‘non-financial corporations’ which itself refers to the ESA-Regulation.

In particular, under ESA-Regulation the ‘non-financial corporations sector consists of institutional units which are independent legal entities and market producers, and whose principal activity is the production of goods and non-financial services. The non-financial corporations sector also includes non-financial quasi-corporations’ (see paragraphs. 2.45 and 2.46 ESA-Regulation).

Therefore, for FINREP purposes independent legal entities, as subsidiaries set up within non–financial group to issue debt instruments or to perform liquidity management activities within the group, shall be considered ‘non-financial corporations’ only if their principal activity as subsidiaries is the production of goods and non-financial services as defined in ESA-Regulation.

Final Q&A