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List of Q&A's

FINREP Template F 40.01

Annex V Part II paragraph 296 (f) of Commission Implementing Regulatio (EU) No 680/2014 states of  “”Equity of Investee”, “Total assets of the Investee” and “Profit or (loss) of the Investee” include the amounts of these items in the last financial statements of the investee.” Does this refer to the latest set of financial statements of the investee which have been approved by the investee’s board of directors, or similarly authorised committee?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2141
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

FINREP Templates F 01.02 and F 43.00

The closing balance of pending legal issues and tax litigation provisions is presented on both row 210 of template F 01.02 and column 040 of template F 43.00. However the guidance reference differs between the two templates. Please confirm which set of guidance should be followed?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2140
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Reporting currency as closely correlated currency

Is a position in a currency that is closely correlated to an institution’s reporting currency eligible for the treatment as a position in a closely correlated currency according to Article 354 (1), (4) to (6) CRR under the standardised approach?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2139
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 03/06/2016

Risk weight of exposures with QCCPs

Is it possible to use a risk weight according to Article 107(2)(a) of Regulation (EU) No 575/2013 (CRR) for trade exposures with a clearing member, where the institution is a client of a qualifying CCP, which is acting as a general clearing member of a non-qualifying CCP?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 528/2014 - RTS on non-delta risk of options in the standardised market risk approach
  • ID: 2015_2138
  • Topic: Market infrastructures
  • Date of submission:
  • Published as final Q&A: 06/01/2017

Reporting of past due exposures

How to determine when an exposure is past due? In Legal acts there are two different explanations. 1. According to Annex V. Part 2, paragraph 48 Assets qualify as past due when counterparties have failed to make a payment when contractually due. It is understood that any overdue payment shall be taken into account (including penalties). 2. According to EBA/ITS/2013/03/rev1, paragraph 150 For the purpose of template 18, an exposure is “past-due” when any amount of principal, interest or fee has not been paid at the date it was due (excluding penalties).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2137
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 04/10/2019

Undrawn credit facility from central bank as inflow

Can you please confirm that any undrawn credit facility from a central bank counts as a liquidity inflow within the meaning of Article 32 of the LCR delegated act with a 100% inflow rate according to paragraph 2 of Article 32 of the delegated act, provided that there is no double counting with liquid assets and is not taken into account under Article 34 of the delegated act?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
  • ID: 2015_2136
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Capital requirements deduction for credit risk on exposures to SMEs

Is capital requirement deduction (SME factor) applicable for specialised lending exposures if conditions determined in Article 501(2) of Regulation No 575/2013 (CRR) are met?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2135
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 01/04/2016

Inconsistency between Annex II C 14.00, column 190 and DTS categorisation of COREP C 14.00, ei86 measure.

In return C 14.00, the Annex II states that ‘If no country exceeds a 20 % threshold based on the amount of assets/liabilities, then ‘OT’ (other) shall be reported.’This would imply that ei86 must report ‘OT’ value.Measure ei86 has link to GA domain, GA4 hierarchy.The GA4 doesn't contain ‘OT’ member. It contains eba_x28 - Other Countries member.We believe there to be an inconsistency between the GA4 hierarchy and the Annex II.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2131
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 04/08/2017

Own funds for foreign branches

Consider, for example, a branch in the EU or EEA that belongs to an institution that is located outside the EU and EEA. According to the general requirements of Article 47 (1) CRD IV that were transposed by the relevant member state, the branch may have to meet separate CRR own funds requirements. To this end, the institution allocates own funds to the branch. Does the branch have to include its own funds in the overall net foreign-exchange position according to Article 352 (4) CRR, if they are denominated in a currency other than the local currency of the member state where the branch is located?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2130
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Design of Templates for 3-year horizon

The guideline provides Templates for 3-year horizon with 5 columns:Actual Current Position (e.g. end 2013)Planned 6 month Position (e.g. H1 2014)Planned Year 1 Position (e.g. end 2014)Planned Year 2 Position (e.g. end 2015)Planned Year 3 Position (e.g. end 2016)For the year 2015 institutions report their funding plans with the reference date (Actual Current Position) 30 June 2015.For subsequent years institutions report their funding plans with the reference date 31 December of previous year. Our understanding is that for the year 2016 FP templates should be designed as follows:Actual Current Position (end 2015)Planned Year 1 Position (end 2016)Planned Year 2 Position(end 2017)Planned Year 3 Position (end 2018)We are not sure if our understanding of FP templates for the 2016 and further (without Planned 6 month Position (H1 2016) is correct?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_2127
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Label of column 140 in C07.00 and validation rule v0008_h

Validation rule v0008_h checks whether values reported in column 140 are higher than values reported in column 130.According to the instructions of column 140, the value reported shall consist of the volatility and maturity adjustments of the value of the collateral and is therefore not a part of the value of column 130. This makes it necessary to remove the text “of which” from column 140 which implies a subset of column 130.Therefore shall the title of column 140 be adjusted to ‘Volatility and maturity adjustments’? Shall validation rule v0008_h be deleted since the value in column 140 can be higher or lower than the value in column 130 and DPM hierarchy be amended?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2125
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 05/10/2018

Transfer of covered deposits as a substitute to reimbursement

Can resolution authorities take resolution action, e.g. a transfer of the deposit book, restoring access to covered deposits, even after such access has been interrupted and the conditions laid down in Article 2(1)(8) of Directive 2014/49/EU (DGSD) are met?In such a case, what is the effect of such action on the obligation of the DGS under Article 8(1) DGSD (repayment obligation) and 109(1) of Directive 2014/59/EU (BRRD) (contribution in resolution)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2123
  • Topic: Interactions with the DGS and the BRRD
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Temporary discontinuance of access to deposits in resolution

Where resolution action is taken in relation to an institution, e.g. open bail-in or transfer of the deposit book to a sound acquirer, which ensures an immediate prospect of quickly ensuring access to deposits, to what extent can access to covered and eligible deposits be temporarily discontinued without triggering the Deposit Guarantee Scheme (DGS) repayment or rendering the resolution action illegal?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2122
  • Topic: Interactions with the DGS and the BRRD
  • Date of submission:
  • Published as final Q&A: 26/08/2016

Calculation of MREL

For the purpose of calculating the total liabilities, including own funds of the resolution entity, as provided under Article 45b(4), (5) and (7) BRRD, should we account for financial instruments that qualify as both own funds and liabilities (such as subordinated debt) in both categories? If so, would this not amount to a double counting of the same financial instruments?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2120
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Countercyclical capital buffer (CCB) relevant exposures

Should sovereign and institutions exposures in default (under Article 112.j of Regulation (EU) No 575/2013) and exposures to institutions with a short-term credit assessment (under Article 112.n of Regulation (EU) No 575/2013) be excluded from the relevant exposures required for CCB purposes?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2117
  • Topic: Other topics
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Consideration and representation within the LE templates in case of existing indirect exposure resulting out of credit risk mitigation (CRM) – here unfunded credit protection under a guarantee between two partners within a Group of connected clients (GCC).

In case of large exposures to a Central Government (SOV) which is part of a Group of Connected Clients (GCC) according to CRR Art. 4 para 1 (39) and reported as explained in the Q&A 2013_681 (separate aggregation of the SOV and each GCC), in which way would be a guarantee considered if the SOV is the guarantor of the entity A and they are both part of the same GCC?We see the following options:the indirect exposure towards the SOV is reported for each Group of connected clients (e.g. GCC1 consisting of SOV and entity A and GCC2 consisting of SOV and entity B) and the direct exposure and the effect from credit risk mitigation is reported only to entity A;in this case there is double counting of the exposure (SOV+A) when calculating the original exposure and the exposure before CRM and exemptions of the GCC;the indirect exposure towards the SOV is reported for each Group of connected clients (e.g. GCC1 consisting of SOV and entity A and GCC2 consisting of SOV and entity B) and the direct exposure to A is omitted (being part of the same GCC): in this case there is no double counting of the exposure (only exposure to SOV);the indirect exposure towards the SOV is not reported at all while the direct exposure to A is reported (out of the existing intragroup guarantee there is no effect from CRM): in this case there is no double counting of the exposure (only direct exposure to A).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2116
  • Topic: Supervisory reporting - Large Exposures
  • Date of submission:
  • Published as final Q&A: 04/08/2017

Mark-to-Market Method: Application of perfectly matching provisions to FX forwards

Can the perfectly matching rule be applied to the below two FX forwards (assuming the same maturity date and same counterparty) that are perfectly matching with respect to the EUR leg:FX forward 1: Bank pays USD 150 in return for EUR 100FX forward 2: Bank pays EUR 100 in return for JPY 1320such that the Mark-to-Market method is based on a single FX forward where the bank pays USD 150 in return for JPY 1320? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2115
  • Topic: Market risk
  • Date of submission:

Reporting of inflows for term deposits with option for early withdrawal

Which inflow rate should apply to term deposits maturing beyond the 30 day horizon for which the depositor (being the reporting institution) has the option to withdraw its deposit without notice period?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
  • ID: 2015_2112
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 20/01/2017

Definition of client funds

Is it sufficient to refer to "client assets" in the list of resolution objectives, if the definition of "client assets" at a national level includes "client money"?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2111
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Protection of investors

Should investors have access to the national investor compensation scheme or should Member States provide other rules to guarantee adequate investor protection?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2110
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 11/11/2016