Search for Q&As

Enquirers can use various factors to search for a Q&A:

  • These include searching by the Q&A ID; legal reference, date submitted, technical standard / guideline, or by keyword if known.
  • Searches can be extended to more than one legal act, topic, technical standard or guidelines by making multiple selections (i.e. pressing 'Ctrl' on your keyboard, and selecting the relevant ones from the drop-down lists by left mouse-click).

Disclaimer:

Q&As refer to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.

Please note that the Q&As related to the supervisory benchmarking exercises have been moved to the dedicated handbook page. You can submit Q&As on this topic here.

Final Q&As Q&As under review Rejected Q&As Archived Q&As All Q&As

List of Q&A's

K-CON own fund requirements

How should the K-CON requirement be calculated under Article 39 of Regulation (EU) 2019/2033?   

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6473
  • Topic: Concentration risk
  • Date of submission:
  • Published as final Q&A: 28/04/2023

Validation rule eba_v0314_m

 Is the formula of validation rule eba_v0314_m consistent for the columns 216 and 217 ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6472
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

v10861_m - G-SII- vs LR-reporting

Is the formula of validation rule eba_v10861_m consistent ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6471
  • Topic: Supervisory reporting - Other
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

F 36 - Reporting of rows "Matching liabilities"

Q&A 682 suggests to follow a ‘quality’ criterion to split the liabilities amount in case of multiple different types of encumbered assets. In our opinion, the meaning of ‘quality' is not clear, because multiple drivers can be used.    

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6470
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as Rejected Q&A: 16/02/2023

Population of F13.1 & F13.2 with respect to debt securities issued by third parties

With respect to the population of F13.1 & F13.2 there seems to be a contradiction between the information provided in the answer to Q&A 2014_916 and the Annex V instructions Part 2, paragraph 173 (b) (iii) with respect to how pledges of securities by third parties are treated. Q&A 916 states that 'Rest' refers to "loans that have been collateralised with debt securities issued by any third-parties"  and shall include 'pledges of other securities issued by third parties including general government'. This instruction is to be used for the population of Col 0041 in F13.1 and Row 0070 in F13.2. However the Annex V instructions Part 2, paragraph 173 (b) (iii) for 'Equities and debt securities' state that collateral in the form of debt securities issued by third parties should be included within this definition. This instruction is to be used for the population of Col 0032 in F13.1 and Row 0060 in F13.2. Can clarification be provided as to where collateral in the form of securities issued by third parties in 13.01 and by extension repossessed collateral in 13.02 are to be reported?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6469
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 16/02/2023

NACE use in Pillar III ESG vs FINREP

1. Does further instruction on NACE classification for a particular counterparty as applicable for disclosures purposes in Pillar III ESG (e.g. Template 1 – Banking book – Climate change transition risk: Quality of exposures by sector) also apply for NACE classification for that same counterparty as presented in FINREP (template F06.01)? 2. Can additional clarification be provided for FINREP template F06.01 Section K 'Financial and Insurance activities'?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6468
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

Treatment of credit risk exposure for credit institutions accessing the overnight deposit facility via a national central bank

Should a credit institution accessing the overnight deposit facility via a national central bank (NCB) treat its credit exposure as being to the relevant NCB pursuant to Capital Requirements Regulation (CRR) Article 114(4), or to the European Central Bank (ECB) pursuant to CRR Article 114(3)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6467
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 22/12/2022

Inclusion of expected loss for equity exposures in calculation of Expected loss amount reducing CET1

Are the expected loss amount for equity exposures calculated in accordance with Article 158(7), (8) or (9) CRR included in the impairment comparison according to Article 159 CRR or not? Shall the expected loss amount for equity exposures be deducted directly from Common Equity Tier 1 capital in row 380 of CA1 (in accordance with Article 36 (1)(d) CRR)? Even if as a consequence validation rule v4811_m would fail?

  • 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: 2022_6466
  • Topic: Model validation
  • Date of submission:

Reporting of underlying exposures of a CIU

As per Article 132a(1) CRR, institutions should do the risk weighting all underlying exposures of the CIU as if they were directly held by those institutions. If underlying exposures are of mix approaches (STD and IRB), then should they be reported on C 07.00 and C 08.x and C 34.x respectively?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6465
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 25/01/2023

SCA for token replacement

Is SCA required for the replacement of a tokenized card happening in the background without any ‘action by the payer’ under Article 97(1)(c) PSD2 in the following cases: Expiry of the token and update of the token Replacement of the card, and the new card has a different BIN/Account Range (e.g., for product graduation, such as standard to gold, or simple BIN management) and/or different functionalities Technical and/or configuration changes to the issuer’s BIN configuration (such as migrating from 6 to 8 digit BINs) In all these cases, the existing tokenized credentials have been initially associated with SCA to the user under Article 24(2)(b) RTS, and this is solely a technical replacement of the token. credentials have been initially associated with SCA to the user under Article 24(2)(b) RTS, and this is solely a technical replacement of the token.

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication
  • ID: 2022_6464
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 31/01/2023

Definition of trading book according to new IFD/IFR

Should the proprietary positions of the investment firm in the financial instrument in order to invest own funds of the investment firn which are held until maturity (for long-term) be recorded in the non-trading book and thus for such cases the investment firm would not need to have licence for dealing on own account?     

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6463
  • Topic: Capital requirements
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Remuneration

I would ask for confirmation that the guidelines contained in the EBA/GL/2021/04 have scope of application to employees, relevant personnel and persons who assume the risk. As indicated in “4 Guidelines – Title 1 – Remuneration policies for all staff -  point 15”, instead, for other persons acting on behalf of the institution (e.g. tied agents) it is understood that the institution, with regard to the remuneration policy, must set only a framework that ensure the payments made are not providing any incentive for excessive risk taking or the mis-selling of products. Therefore, the remaining guidelines contained in the EBA/GL/2021/04 do not have, as their scope, external agents or networks that have no influence on risk-taking policies.   Chiederei conferma che le direttive riportate nella circolare EBA/GL/2021/04 trovano ambito di applicazione al personale dipendente, il personale rilevante e i soggetti che assumono il rischio. Come indicato all’articolo 4 punto 15, invece, per le persone che agiscono per conto dell’ente (ed esempio, gli agenti collegati) si intende che l’ente, in merito alla politica di remunerazione, deve stabilire soltanto un quadro che garantisca che i pagamenti effettuati non forniscano alcun incentivo all’assunzione di rischi eccessivi o alla vendita abusiva di prodotti. Pertanto le restanti linee guida contenute nella circolare EBA/GL/2021/04, non hanno come ambito di applicazione, gli agenti o reti esterne che non hanno alcuna influenza sulle politiche di assunzione del rischio.

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2021/04 - Guidelines on sound remuneration policies under CRD (repealing EBA/GL/2015/22)
  • ID: 2022_6461
  • Topic: Remuneration
  • Date of submission:
  • Published as Rejected Q&A: 26/07/2022

Determination of the total deposit balance of "all the client's deposit accounts"

Assuming a natural person has a bank account at a bank as a private individual. At the same time the individual is a (co)-owner of a legal entity, which qualifies as an SME, and the legal entity has a business account at the same bank. Shall the accounts of both the private individual and the legal entity be aggregated when checking the total deposit balance against the threshold of EUR 500,000? If so, how would the bank determine the appropriate share of the account balance of the legal entity (SME) if the individual is only a co-owner (e.g. 100%, 50%, etc.)?  

  • 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: 2022_6460
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 27/01/2023

Embedded Derivatives under Art 24 (1) CRR versus Art 104 (3)

Can an institution be compliant with Art 24 (1) CRR, if embedded derivate and its host contract treated independently pursuant to Art 104 (3) Second Subparagraph of Proposal for amending CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6459
  • Topic: Accounting and auditing
  • Date of submission:
  • Published as Rejected Q&A: 26/07/2022

Validation rule v4135_m

As we are asked not to report the repos at fair value in the “Repurchase agreements” item on P01.02, while also explicitly required to report MRO, LTRO & TLTRO operations in P02.02, we believe this validation rule cannot be complied with.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/05 – Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2 - repealing EBA/GL/2014/04
  • ID: 2022_6457
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

Early redemption options

Would an early redemption option exercisable by the holder of the instrument cause such instrument to be ineligible altogether or would it merely result in its maturity being deemed shortened in accordance with Article 72c(2)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6456
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 26/07/2022

v6566_s, v6567_s, v6327_m: FV changes of hedged items in portfolio hedge of IRR

Should the warnings from EBA validation rule v6566_s be maintained for data point {C 32.01, r0120, c0010}? And what about EBA validation rule v6327_m for C 32.01, r0120? Consistently, should EBA validation rule v6567_s be amended to exclude rows 0010, 0020 and 0120 from the check?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions
  • ID: 2022_6455
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 14/06/2023

Scope of Prudential consolidation

Which is the applicability of Article 22 CRR for successive subsidiaries of a Significant Institution (SI) in the SSM and rest of EU, when the subsidiary in a third country as referred in Article 22 CRR is held by the subsidiary in the SSM or rest of the EU that is the last in the chain of the successive subsidiaries of the SI?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6454
  • Topic: Other issues
  • Date of submission:

PD calibration sample

Given the definition of PD calibration provided in EBA/GL/2017/16 section 2.4 paragraph 8, and the requirements for the calibration sample provided in section 5.3.5, paragraph 88 of the same guidelines, for developing a TTC model, clarification is needed on the expectation on the implementation of the back-testing performed in the validation phase: Shall the back-testing at portfolio level verify that the average PD over historical observation period is aligned with LRA DR or, instead, shall the comparison be made between PD estimates current at the validation date and the LRA DR? Does it change according to the rating philosophy? Shall the back-testing always be performed on a 1-year validation sample, regardless the type of TTC calibration philosophy and regardless the length of the calibration sample? How shall the rating philosophy be taken into consideration when assessing the outcome of back-testing at grade level? Provided that the main aim of the calibration is to reflect the LRA DR, is the any case where the alignment to 1-year default rate should get a higher weight in validation assessment, although in a TTC calibration philosophy?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2017/16 - Guidelines on PD estimation, LGD estimation and the treatment of defaulted exposures
  • ID: 2022_6453
  • Topic: Model validation
  • Date of submission:
  • Published as Rejected Q&A: 27/01/2023