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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.

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List of Q&A's

Other Asset

Should all the accounting based off-settings (here including for example tax assets/ liabilities off-setting) be grossed-up on Other Asset of LR exposure?

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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_1856
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as final Q&A: 04/10/2019

Reporting of secured lending if an institution has no possession of the collateral

Does a loan qualify as collateralised lending if the collateral has been pledged by the debtor, but the bank can only use the collateral in the event of a default of the customer or should loans only be seen as collateralised lending if the bank is in possession of the collateral (meaning the collateral is included in the bank’s balance sheet)? What does collateralised by collateral that qualifies as a liquid asset mean? Does it mean that the bank has reported the collateral as High Quality Liquid Assets (HQLA) in the LCR, or does it mean that if the bank will call the collateral in case of a default of the debtor the bank can than report that gained collateral as HQLA?

  • 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_1855
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 26/06/2015

Reporting of the Transactions where cash transfers does not occur

We would like to know in cases of transactions wherein stocks/securities are exchanged e.d Stock borrowing and Lending(SBL) transactions , how the stock encumbered and matching liabilities should be reported.

  • 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_1852
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 04/06/2021

Subordinated loans as Additional Tier 1 capital

Is it possible for a (normal) subordinated loan to qualify as Additional Tier 1 capital according to Article 51 of Regulation (EU) No 575/2013 if all conditions according to Article 52 are met?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2015_1846
  • Topic: Own funds
  • Date of submission:

F 12.00 - changes of counterparty sector

In FINREP template F 12.00 movements in allowances for credit losses in the current year are reported taking into account the credit loss assessment method and the relevant counterparty sector. It is possible that the counterparty sector changes within the reporting time frame (i.e. from the date of the opening balance in column 010 to the reporting date, that is the date of closing balance in column 070). If this is the case, does the reporting institution take into account the counterparty sector as at the reporting date? Or are such changes reported in column 060 Other adjustments?

  • 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_1844
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Disclosure requirement

What is the scope, in terms of risk types, of the disclosure requirement under Title VII, paragraph 23b); specifically, does it include Counterparty Credit Risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/14 - Guidelines on materiality, proprietary, confidentiality and disclosure frequency under Pillar 3
  • ID: 2015_1843
  • Topic: Transparency and Pillar 3
  • Date of submission:

FORBERANCE CLASSIFICATION

For forborne exposures under probation which, at the time of the initial concession, were performing, if a new measure is granted after 1 year and a half, during which the client has fulfilled points c) and d) of standard 176 when it is still within the probation period, and if the bank, on the basis of its own independent evaluation, does not reclassify the client (see Q&A EBA 2013_618 and 2014_736), is the period of 2 years for exiting the probation period counted again from scratch?Nel caso di una esposizione forbone under probation, che nel momento della prima concessione era performing, se una nuova misura viene concessa dopo 1 anno e mezzo durante il quale il cliente ha rispettato i punti c) e d) dello standard 176, quando è ancora in vigore il periodo probatorio, e se la banca in virtù della propria autonoma valutazione non riclassifica il cliente (vedi Q&A EBA 2013_618 e 2014_736) il conteggio dei 2 anni per l’uscita dal periodo probatorio, riparte da zero?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2015_1842
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 19/03/2021

FORBORNE PERFORMING/CLASSIFICAZIONE CLIENTE - FORBORNE PERFORMING / CLIENT CLASSIFICATION

Since the concession of more favourable conditions as part of commercial practice is not comparable to a forbearance measure, if, during the probation period, the client (forborne performing), once their situation has returned to normality after largely overcoming potential ‘difficulties’, were to request an adjustment of the conditions in line with other competing banks, if the bank met the request for obvious reasons of expediency, would it then be forced to reclassify the client?Posto che la concessione di condizioni più favorevoli, rientranti nella prassi commerciale, non è equiparabile ad una misura di forberance, se nel periodo probatorio il cliente (forborne performing), tornato in condizioni di piena regolarità avendo ampiamente superato potenziali “difficoltà”, richiedesse un adeguamento delle condizioni rispetto ad altre banche concorrenti, a fronte della adesione della banca alla richiesta per evidenti ragioni di opportunità, la stessa si vedrebbe quindi costretta a ri-classificare il cliente?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2015_1841
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Treatment of ‘short-term’ exposures - Trattamento delle esposizioni a “breve termine"

With regard to short-term exposures involving renegotiations triggered by financial difficulties of the debtor – hence forborne – we ask that the deadline after which the anomalies and subsequent modifications in use must be considered for forborne purposes (past due invoices not paid by a certain date, tied-up amounts, time given for covering outstanding claims, etc.) be established objectively beforehand.Con riferimento alle esposizioni a breve termine in presenza di rinegoziazioni dovute a difficoltà finanziarie del debitore e dunque forborne si chiede di stabilire in modo oggettivo e predeterminato la tempistica oltre la quale le anomalie e le successive modifiche di utilizzo devono essere considerate ai fini forborne (fatture scadute e non rimborsate oltre una certa data, importi immobilizzati, tempi per la copertura degli insoluti ecc.).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2015_1839
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Forbearance of Non-performing Exposures

A clarification regarding the scope of application for forbearance of Non-performing Exposures is required.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2015_1838
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Offset of Additional Value Adjustments (“AVA”) against Expected Loss (“EL”) under Article 159

Could the EBA advise whether the reference to “provisions” within the answer to Q&A 2014_933 and 2014_950 refers to specific credit risk adjustments (“SCRAs”)? If so, could the EBA advise if there are any restrictions to the application of AVA against EL as the existing text and level 1 text could be read that any AVA on an IRB exposure would be eligible for offset under Article 159.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1835
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 20/01/2017

Concentration of funding by counterparties - maturities and product types for fair value of derivaties and collaterals

Institutions shall report the total of all other remaining liabilities in section 2; shall we also report weighted average initial maturity and weighted average residual maturity for the remaining liabilities or the average maturities should only be reported for counterparties exceeding a threshold of 1% of total liabilities ? How should we treat received collaterals and the fair value of derivatives, as they don’t fit in any category of product type provided in Annex XXI - Instructions for completing the additional monitoring tools template(UWF, UWNF, REPO, CB, ABS, IGCP) ? And what maturity should we assume for this kind of liabilities ( 1 day, or the initial/ residual maturity of a derivative)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2015_1829
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 18/12/2015

Scope of uniform reporting requirements, Integrated Reporting Framework

Regarding the scope of the uniform reporting requirements specified in the ITS we would like to raise the question, whether these reporting requirements, also needed for other reporting purposes, can be fulfilled in a more efficient way as part of a broader reporting framework beyond the CRR by (a) increasing the level of granularity, (b) adding additional attributes and/or (c) require the combination of different attributes. For instance: (a) If the ITS requires the maximum-harmonised ‘Total Exposures’ (see Annex I, C 07.00, row 010, column 010) only on an aggregated level, is the competent authority allowed to increase the granularity and collect this information on a more detailed level, if this information is required for other reporting purposes? If yes, may the aggregates required by the ITS be derived out of these granular data by the NCAs/NCBs themselves? (b) Is it further allowed for the competent authority to add additional attributes, e.g. ISO country code, if this information is required for other reporting purposes? (c) Is it allowed to make non-material additions regarding the reporting requirements specified in the ITS, by the combination of detailed ‘Total Exposures’ with its ISO country code and a third attribute, for instance the residual maturity, if needed for other reporting purposes, in order to enable a ‘technical data model’? Please note: It is not intended to add new attributes, which are not legally required. Rather, by the combination of the above mentioned attributes, the quality of the information increases while the requirements by the ITS are met.

  • 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_1828
  • Topic: Supervisory reporting - Other
  • Date of submission:
  • Published as final Q&A: 26/02/2016

Defintion of “micro, small and medium sized enterprises”

How should be defined the concept of “micro, small and medium sized enterprises” given by the Article 108(a)(i)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1827
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Client money

To what extent the deposits linked to securities accounts can be qualified of “client money”?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1826
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Client money

To what extent the cash held by a UCITS can be qualified as client money?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1825
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 24/07/2015

Netting of Derivatives

In the Article 45b(6), first subparagraph, Directive 2014/59/EU (BRRD) specifies that "derivative liabilities shall be included in total liabilities on the basis that full recognition is given to counterparty netting rights". What are the netting principles applicable? Does the Article 45b(6), first subparagraph, of the BRRD refer to accounting or prudential netting principles?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1824
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 10/06/2016

Asset Encumbrance & Covered Bonds

Are assets in cover pools that are not necessary to fulfil regulatory requirements deemed to be encumbered for Parts A, B, C and E of the Asset Encumbrance Reporting templates?

  • 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_1817
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as final Q&A: 25/09/2015

Reduction of CET1 by absorbing losses which are already accounted as loss brought forward

Is the prior permission of the supervisor required when an institution reduces its CET1 instruments by absorbing losses which were already accounted for as retained losses (i.e. loss brought forward)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1815
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 05/06/2015