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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

Deposit Guarantee Scheme (DGS) contributions couning towards the 8% requirement

On what basis is the 8% in Article 44(5) of Directive 2014/59/EU (BRRD) to be applied? Do Deposit Guarantee Scheme (DGS) contributions count towards the 8% requirement?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1784
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Transfer of rights and liabilities in the context of the Asset Separation Tool

Can you clarify if there is a distinction between Article 42(1) and Article 42(3) of Directive 2014/59/EU (BRRD): does the assets separation tool allow Resolution Authorities to transfer rights and liabilities as well as assets?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1783
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Transfer of assets / Consideration paid by the purchaser

On the basis of Article 39(1) and 38(4)(b) of Directive 2014/59/EU (BRRD), where assets of the holding company are transferred, should the consideration paid by the purchaser benefit the holding, and not the institution under resolution?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1782
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Transfer of shareholders in the context of sale of business, Bridge Bank, Asset Separation

1. Is there any rationale for different terminology in Articles 43(2)(b)(i) and 43(2)(b)(ii) of Directive 2014/59/EU (BRRD)? What happens in a situation, when the bridge bank should be wholly owned by the Member State? Does it mean that bridge bank provisions must allow for partial State ownership, or does it mean that the power according to Article 43(2)(b)(i) should not be implemented? 2. What is the procedure for consecutive bail-in after the transfer tools is used?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1781
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Clarificaion of "value of an instrument" in Article 48(2)

We seek clarification regarding Article 48(2) of Directive 2014/59/EU (BRRD), the provision regarding write-down and conversion powers is unclear: the value of an instrument may fluctuate therefore the reference to “value” in Article 48(2) seems ambiguous. We wonder if value refers to the “face value” (“notional amount”) or to the “market value”?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1780
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Liabilities guaranteed by third parties subject to bail-in

The provisions regarding exclusion of "secured liabilities“ from bail-in contained in in Articles 2(2)(67) and 44(2)(b) of Directive 2014/59/EU (BRRD) seem to be ambiguous. We seek clarification as to whether liabilities guaranteed by third parties can be subject to bail-in?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1779
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Asset transfer in case of sale of business tool

What is the proper basis of transferring assets in case of sale of business tools as referred to in Article 38(1) of Directive 2014/59/EU (BRRD), is it the resolution authority decision or agreement?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1778
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Solvency in the context of Article 32(4)(d)

What is a solvent institution in the context of Article 32(4)(d) of Directive 2014/59/EU(BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1777
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 17/04/2015

Credit Risk Mitigation

Can an institution legally "ring fence" cash it has to mitigate an exposure to a counterparty (using it as financial collateral)? The institution does not wish to notify the counterparty. The CRR is not clear on whether financial collateral used to mitigate an exposure must come from the counterparty or not.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1776
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 10/07/2015

Non transferred assets, rights and liabilities of shareholders or creditors

Articles 38(13), 40(11) and 42(12) of Directive 2014/59/EU (BRRD) state that shareholders or creditors whose assets, rights and liabilities are not transferred, shall have no rights over the assets, rights and liabilities that are transferred. What is meant by that and how would this affect a creditors right in rem against an institution?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1775
  • Topic: Resolution safeguards
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Use of an existing legal person as a bridge Institution

In cases where a legal person already exists can this be used for the purposes of Article 40 of Directive 2014/59/EU (BRRD)? Does, in particular, Article 40(2)(b) of the BRRD exclude using a) a legal person that already exists but is now bought for this purpose; b) using a legal person that is being held available for this purpose by the institution concerned?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1774
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Timing of Valuation

Should the valuation according to Article 36(1) of Directive 2014/59/EU (BRRD) be carried out 1) only at the very beginning of the whole process, i.e. before the first application of the resolution tool or the power to write down or convert capital instruments or 2) in the cases where two or more tools or powers are applied should the valuation be carried out before each of them?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1773
  • Topic: Valuation
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Bridge Insitution Tool

Can you please clarify whether Article 41 (4) of Directive 2014/59/EU (BRRD) is about the sale by the resolution authority of the bridge institution; or the sale by the bridge institution of the institution in resolution or an entity referred to in Article 1(1)(b)(c)(d)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1772
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Appointment of Temporary Administrator

Does Article 29 of Directive 2014/59/EU (BRRD) mean that a competent authority can appoint a temporary administrator to replace the senior management as well as the management body?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1771
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Bail-in tool

Can the list of exemption from bail-in of Article 44(2)(g)(i) of Directive 2014/59/EU (BRRD) be interpreted such as to include a) continued payment of wages in case of illness; b) holiday pay; c) compensation for a worker who was unable to exercise his right to paid annual leave on account of incapacity for work?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1770
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Actions of a Special Manager

Is the scope of actions of a special manager mentioned in Article 35(3) of Directive 2014/59/EU (BRRD) an exhaustive list

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1769
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Covered bonds issued by non-EEA member states

In the context of two identical covered bonds, the first issued by a French bank and qualifying for covered bond status, and the second issued by a Canadian bank identical in all other respects, can the latter one be treated as a covered bond under the third country equivalence decision or can covered bonds only be issued by credit institutions having their registered office located in a Member State?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1767
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of Sovereign Wealth Funds as non-financial customers or financial customers

If an institution has unsecured deposits from a Sovereign Wealth Fund, are those deposits from financial customers or deposits from non-financial customers?

  • 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_1764
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 30/04/2015

Group Solvency - Combined Buffer Requirements

Annex II, Part 2, section 2.4, column 410 (combined buffer requirement) refers to CRD article 128.The format of C 06.01 / C 06.02 suggests that column 410 includes column 440 (Conservation Buffer due to Macro-Prudential or Systemic Risk Identified at the Level of a Member State) given that the heading for column 410 embraces column 440.However Article 128 CRD states:'combined buffer requirement' means the total Common Equity Tier 1 capital required to meet the requirement for the capital conservation buffer extended by the following, as applicable:(a) an institution-specific countercyclical capital buffer;(b) a G-SII buffer;(c) an O-SII buffer;(d) a systemic risk buffer;This does not include column 440 of C 06.01 / C 06.02, which is set through Article 458 CRR.Clarification is hence sought as to whether    (A) 410 = 420 + 430 + 450 + 460.or (B) 410 = 420 + 430 + 440 + 450 + 460

  • 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_1759
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 28/07/2017

FINREP Counterparty Breakdown (ESA 2010)

Annex V, Part 1, Reference 6.34 (b) 'general governments': Please confirm that public companies and private companies controlled by central governments, state or regional governments, local governments (including administrative bodies and non-commercial undertakings), that are market producer has to be reported in accordance with ESA 2010 (which may either lead to a classification as "non-financial corporation" or "financial corporation"). Annex V, Part 1, Reference 6.34 (d) 'other financial corporations': Please confirm that 'captive financial institutions' according to ESA 2010 has to be reported under 'other financial corporations'.

  • 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_1758
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 15/04/2016