Single Rulebook Q&A

Question ID: 2018_4335
Legal act : Regulation (EU) No 575/2013 as amended by Regulation (EU) 2019/876 – CRR2
Topic : Supervisory reporting
Article: 99
Paragraph:
Subparagraph:
COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (as amended)
Article/Paragraph : NA
Type of submitter: Credit institution
Subject matter : Finrep Solo GAAP: The following validation rules v5476_m until v5489_m are missing the column"Accumulated negative value adjustments on LOCOM assets - credit risk induced"
Question:

Dear Could it be that the the column "Accumulated negative value adjustments on LOCOM assets - credit risk induced" is missing in the validation rules from v5476_m until v5489_m?

Background on the question:

According to the definition of accumulated impairment (annex V paragraph 71) "Under national GAAP based on BAD, it shall include specific and general allowance for credit risk, as well as the general allowance for banking risk where it reduces the carrying amount of debt instruments. Accumulated impairment shall also include the credit risk-induced value adjustments on financial assets under LOCOM." As " the credit risk-induced value adjustments on financial assets under LOCOM" are not presented in the "allowance" columns of 04.09 and 04.10 but are represented in c130 on F18, there could be a trigger of the validation error.

Date of submission: 23/10/2018
Published as Final Q&A: 07/06/2019
EBA answer:

Under national GAAP, debt instruments at cost or at amortized cost reported under template F18 shall encompass instruments classified under strict of moderate LOCOM according to paragraph 233 of Annex V to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting).

Column 130 of template F18 “Accumulated impairment, accumulated negative changes in fair value due to credit risk and provisions shall include credit risk-induced value adjustments of financial assets under LOCOM according to Annex V paragraph of the same regulation.

Consequently, validation rule v5476_m is not correct and will be deactivated until amendment to include column 080 “Accumulated negative value adjustments on LOCOM assets-credit risk-induced” of templates F4.9 and F4.10”.

The same applies to validation rules v5477_m to v5489_m.

Status: Final Q&A
Permanent link: link