Question ID:
2018_4193
Legal Act:
Regulation (EU) No 575/2013 as amended by Regulation (EU) 2019/876 – CRR2
Topic:
Supervisory reporting
Article:
415
COM Delegated or Implementing Acts/RTS/ITS/GLs:
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph:
Annexes XIX and XX, template C 66.00, validation rules
Type of submitter:
Competent authority
Subject Matter:
C 66.00, validation rule v5903_s
Question:

In an environment of negative (money market indexing) interest rates this rule may not be applicable.

Background on the question:

This rule states that, for several rows, in all columns (maturity buckets), the outflows have to be positive. In an environment of negative (money market indexing) interest rates this rule may not be applicable.

Date of submission:
13/08/2018
Published as Final Q&A:
06/09/2019
EBA Answer:

In accordance with Annex XXII (template) and Annex XXIII (instructions) of Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) institutions shall report their contractual flows and contingent outflows, with such flows to be allocated across the twenty-two time buckets according to their residual maturity, with days referring to calendar days.

As further described under paragraph 8 of Annex XXIII of Regulation (EU) No 680/2014, cash outflows and inflows in the respective sections “outflows” and “inflows” shall be reported on a gross basis with a positive sign and amounts due to be paid and received shall be reported respectively in the outflow and inflow sections.

Against this background, interest outflows resulting from negative interest rates are to be reported in row 370 (“Other outflows”) with a positive sign. In the same vein, interest inflows resulting from negative interest rates are to be reported in row 690 (“Other inflows”) with a positive sign.

Status:
Final Q&A