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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

Template C 17.00 (OPR DETAILS) – Reporting of loss adjustments

How should a positive or negative loss adjustment be reported in template C 17.00 of Annex I of Regulation (EU) 680/2014 (ITS on Supervisory Reporting)? In particular, how should it be reported in the loss-size buckets (rows 920 – 924 of the template)?

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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: 2016_2867
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Clarification of the collateral amounts

Could you please clarify the amounts which need to be reported in column 150-210 of template C08.01 for funded credit protection and where the institution uses its own LGD estimates? Is this the value which is used in the LGD estimation (taking into account article 181 (1) (e) and (f)) or is it solely the estimated market value (without any haircuts)?

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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: 2016_2866
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Rating of subsidiaries

Is “separately rated” in Article 172(1)(d) to be interpreted as “rated on individual information” or as ”having own rating based on a separate rating process”? Alternatively put: How is “separately rated” in Article 172(1)(d) to be interpreted?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2864
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Reporting of CCF values for FIRB

Instructions on c100 of C 103 in ANNEX IV to the ITS state that institutions should report own estimates for CCFs. If the institutions apply the FIRB approach, they have to use regulatory CCFs. Further, in the case that there are no off-balance positions in the exposure no CCF is applied. Would it be correct to report regulatory CCFs if no own estimation is undertaken or should these cells be left blank? If no CCF is applied, should the cell be left blank or be filled with a 1cnot applicable 1d?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2016_2861
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Application of the Guidelines on sound remuneration policies to the award and pay out of variable remuneration for the performance year 2016

In the Guidelines the application date is set for 1 January 2017. Do the Guidelines apply to variable remuneration for the performance year 2016 that will be awarded in 2017?

  • 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: 2016_2858
  • Topic: Remuneration
  • Date of submission:

Determination of proxy spreads for the calculation of CVA risk under the advanced method

1. Does Article383 (1) CRR in connection with regulation 526/2014 (RTS) in principle allow to waive one or more of the attributes of rating, industry and region when determining a proxy credit spread for the advanced method for the determination of own funds requirements for credit valuation adjustment (CVA) risk? 2. What is the minimum granularity (number of categories) that a credit spread proxy must reflect to be appropriate with respect to the attributes of rating, industry and region of the counterparty?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 526/2014 - RTS on proxy spread and limited smaller portfolios for CVA risk
  • ID: 2016_2856
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Calculation of the predetermined amount for market making purposes

Which amount has to be taken into account in market making operations when the nominal amount of the repurchased CET 1 instruments , e.g. shares, is 1 EUR per share but the current market price which has to be paid for the repurchase of the share is higher, for example 20 EUR. Which amount has to be taken into account to compute the predetermined maximum amount for market making purposes for which a general prior permission has been granted by the competent authority (CA) according to the second subparagraph of Article 78(1) of Regulation (EU) No 575/2013 (CRR)?

  • 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: 2016_2852
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 09/12/2016

FINREP validation rules

Validation rules v1702_m and v1703_m seem to be uncorrect

  • 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: 2016_2850
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Gross-up calls on Tier 2

Should gross-up cases on Tier 2 be allowed only in relation to coupon withholding tax (and not principal)?

  • 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: 2016_2849
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 31/03/2017

Taps on callable instruments

If a tap of an instrument is priced at a lower credit spread than the initial spread of the original issue, would the reset of the margin at the first call date to the initial spread of the original issue be considered an incentive to redeem as per Article 20 of EBA RTS for Own Funds requirements for institutions?If a tap of an instrument is priced at a lower credit spread than the initial spread of the original issue, would the reset of the margin at the first call date to the initial spread of the original issue be considered an incentive to redeem as per Article 20 of EBA RTS for Own Funds requirements for institutions?

  • 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: 2016_2848
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 21/07/2017

Items associated with particular high risk

Does the term "investments" in letters (a) investments in venture capital firms, (b) investments in AIFs (...) and (c) investments in private equity include only exposures in the form of shares or units in (equity of) venture capital firms, AIFs, and private equity, or it is related to all forms of exposures (e.g. debt and equity instruments, units and shares in CIUs, etc.)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2845
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Invalid CRR article reference within leverage ratio ITS (regulation (EU) 2016/428)

The instructions for cells {180;020} and {180;040} of the leverage ratio report 'C43.00 — Alternative breakdown of leverage ratio exposure measure components (LR4)' contained in the leverage ratio ITS make reference to "exposures in the form of covered bonds under Article 161(d) of the CRR". "Article 161(d)" is not a valid reference to the CRR. Is the intended reference 'article 161(1)(d)'?

  • 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: 2016_2843
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Realisation of collateral and unlikeness to pay

Is exposure considered non-performing according to Art 145(b) ITS also in the case where: (i) the debtor is assessed as unlikely to pay its credit obligation without collateral either being repossessed or sold voluntarily; (ii) a voluntary sale is assessed as highly feasible.

  • 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: 2016_2842
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 03/02/2017

Clarification is sought on the treatment of defined benefit pension funds for the purposes of determining market risk RWA

Article 41(1) or Regulation (EU) No 575/2013 (CRR) and EBA Q&A 2014_1567 clarify that with respect to credit risk RWA, only the assets according to Article 41(1)(b), i.e. the assets for which the institution has an unrestricted ability to use and that have been use to reduce the CET1 deduction amount, must be captured for credit risk RWA purposes. We would like to reconfirm that the same treatment applies for market risk RWA, e.g. with respect to FX risk.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2841
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of "E-money" in Liquidity Reporting

We seek clarification on how the issue of “e-money” is to be treated in the computation of liquidity requirements and reporting; “LCR, stable funding reporting and ALMM”.From a liquidity related context, would the issued “e-money” be accounted for/treated according to “Article 421(1)” of CRR under retail deposits? And therefore, be included in the computation of demand deposits, where the outflow is stressed with 5% according to “Article 421(1) (a)? Or stressed with 10% following “Article 421(2), in relation to whether a customer has an established relationship with the bank and is covered by the “Deposit Guarantee Scheme”?Alternatively, would the issued “e-money”, from a liquidity related perspective be accounted for under “Other Liabilities” according to “Article 422 of CRR? Hence, entail the computation of “Other Liabilities” as per “Article 422(5), where outflows are stressed with 40% and 20% respectively? Depending on whether the commitment/liability is covered by the “Deposit Guarantee Scheme”?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2013/01 - Guidelines on retail deposits subject to different outflows for purposes of liquidity reporting
  • ID: 2016_2840
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 24/02/2017

Max amount of cash leverage in the mandate of an AIF in order to NOT be considered as a high risk exposure

What is the maximum permitted “cash leverage” allowed in the mandate of the alternative investment fund (AIF) in order not be considered high risk?In the event the AIF is NOT considered to be high risk, should then Article 132 CRR be taken as reference?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2838
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Portfolios where Maturity should be completed

C 103.00 – Definition of High Default Portfolios - column 140, Maturity: Should this field be completed only for portfolios with exposures to corporates, institutions and central governments and central banks where the institution has received the permission to use own LGDs by the competent authority?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/2070 - ITS on Supervisory Reporting (for benchmarking the internal approaches) (as amended)
  • ID: 2016_2837
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Validation rule 1740_m

Regarding validation rule v1740_m (sum({F 20.06, r010, c010, (sNNN)}) = xsum({F 08.01.a, (r010, c010, c034)}), we would like to note the following:Template F 08.01 row 010 and columns c010 & c037, should be completed by the carrying value of derivative liabilities according to recognition portfolio as hedging instruments (F 08.01.a, r010, c037) or as trading (F 08.01.a, r010, c010), by those entities which apply IAS or IFRS (please see below reference 1).Template F 08.01 row 010 and column c034, should be completed by those entities which apply National GAAP.On the basis of the above two benchmarks the relevant validation cannot apply.Furthermore, template F 20.06 according to Annex V part 2 par. 108 (please see below reference 2), should be reported the total carrying value from both portfolios, hedging or trading, country by country. It is not clear that the breakdown per counterparty sector applies only for the trading portfolio.Finally, template F 08.01 should also present deposits which are distinguished by accounting portfolio (Held for trading, Designated at fair value through profit or loss, Amortised cost). What should be the treatment of these financial instruments which are also presented in template F 20.06 (validation rule v1742_m)? Should we submit the total carrying value of the three portfolios country by country?

  • 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: 2016_2835
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 07/04/2017

Annex XI - template C 44.00 (LR5), row 040, column 010

In consolidated reporting, which category should be used to complete template C 44.00, row 040, column 010 if the parent company is a Financial Holding Company or a Mixed financial holding company?

  • 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: 2016_2833
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as final Q&A: 28/07/2017

Treatment of irrevocable payment commitments according to Article 103(3) BRRD

How should payment commitments pursuant to Article 103(3) BRRD (Directive 2014/59/EU) be treated in the capital requirements for credit risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2831
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022