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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

Classification of a performance bonds according to annex 1.

Does a performance bonds which guarantee satisfactory completion of a project by a contractor with an original maturity of more than one year qualify as Medium/low risk according to CRR, annex I, item 3(a)(ii) ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2198
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 03/06/2016

Potential Future Exposure (PFE) add-ons for written options out side netting agreement

Is PFE (Potential future exposure) calculation applicable for written options when they are included in derivative netting and not applicable for written options when there is no netting agreement?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2195
  • Topic: Market risk
  • Date of submission:

Definition of large financial sector entity

In applying the definition of “large financial sector entity” under Article 142(1)(4)(a) of Regulation (EU) No 575/2013, is it correct to consider the assets of the counterparty (individual or consolidated balance sheet), rather than consolidated assets for any Group to which the counterparty belongs?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2193
  • Topic: Model validation
  • Date of submission:
  • Published as final Q&A: 11/03/2016

Information on performing and non-performing exposures

Table F 18.00 of FINREP contains the breakdown by past-due time bands of performing and non-performing exposures. In case of "debtor approach" how should the exposures to a given debtor be allocated to columns? And do such criteria have to be applied to both performing and non-performing debtors?

  • 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_2192
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 09/09/2016

Small bank: bail-in or liquidation

Should the resolution authority assess the possibility of bail-in even for a small non-systemically important institution without critical function before making a decision about liquidation?Please specify whether in the scope of Article 31(2)(e) "client funds and client assets" should be included also moneys of bank's depositor (creditor) exceeding the covered deposit?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2191
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 26/10/2018

Wrong validation rule v2855_m

Is a netting of repurchase agreements with securities lending needed in Asset Encumbrance?

  • 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_2190
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Final valuation lower than the initial valuation

What are the consequences of final valuation being lower than the initial one?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2187
  • Topic: Valuation
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Same valuer for provisional and final valuation

Can the resolution authority outsource the provisional valuation? If yes can the same valuer prepare provisional and final valuation?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2186
  • Topic: Valuation
  • Date of submission:
  • Published as final Q&A: 28/10/2016

Clarification on the role of the special manager in resolution

We seek clarification on the role of the special manager in resolution as set out in Article 35 of Directive 2014/59/EU (BRRD). This appears to overlap with the role of the temporary administrator as defined in Article 29.Also, is the special manager referred to in Article 35 BRRD a separate institution from that mentioned in Article 72(1) or only its special case?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2185
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Liability in the context of special management

In the case of special management, is the resolution authority liable for the acts of the special manager that the former had appointed and / or is the appointed special manager directly liable for their acts?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2184
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Resolution authorities in the function of special manager

Is it possible for resolution authorities to perform simultaneously the function of "special manager" of an authority mentioned in Article 35(1) of Directive 2014/59/EU (BRRD) under the assumption, that in accordance with national law it can perform the "insolvency management" function mentioned in Article 35(8) 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_2183
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Interaction between the State aid framework and the application of resolution actions

Could you please clarify the interaction of the State aid framework and the application of resolution actions in the context of Article 34 (3) and Recital 47 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_2182
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 10/03/2017

Application of the NCWO principle

Regarding to the no-creditor-worse-off principle as referred to in Article 34(1)(g) of Directive 2014/59/EU (BRRD) - does it apply to write down and conversion as well? Or only to the use of resolution tools?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2181
  • Topic: Resolution objectives and triggers
  • Date of submission:

Resolution action with regard to a holding

When can a resolution action be taken with regard to a holding according to Article 33(4) of Directive 2014/59/EU (BRRD): are the conditions individual or cumulative?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2180
  • Topic: Resolution objectives and triggers
  • Date of submission:

Clarifications regarding the scope of application of Article 33

Can you please clarify Article 33 of Directive 2014/59/EU (BRRD); as a whole, we interpret it to mean that the special rule for Financial Institutions should apply only to Financial Institutions that are not parents in accordance with Article 1(1)(c) or (d), but are subsidiaries of a credit institution or an investment firm. Is this correct?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2179
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Clarification on the applicable framework for public recapitalisation

We would like clarification on the applicable framework for public recapitalisation which is not classified as precautionary recapitalisation accordingly to Article 32(4)(d)(iii) of Directive 2014/59/EU (BRRD), in particular i) its relation to Government Financial Stabilisation Tools, and ii) differences in rules applicable in 2015 and from 2016 onwards.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2178
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 02/12/2016

Determination made by competent authority

Must the “determination made by competent authority”, mentioned in Article 32(1)(a) of the Directive 2014/59/EU (BRRD), be enshrined in a formal decision of the competent authority?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2177
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Declaration of insolvency / bankruptcy

When the entity is failing or likely to fail and the public interest condition referred to in Directive 2014/59/EU (BRRD) is not fulfilled, who is supposed to take initiative for the purpose of the entity’s bankruptcy motion? How do the determination under Article 82(2) BRRD and the assessment of resolvability under Articles 15 and 16 BRRD relate to each other?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2176
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Clarification on formal decision

Should the determination to be made by the resolution authority under Articles 32(1), 32a and 33 of Directive 2014/59/EU (BRRD) on whether the conditions for resolution are met be enshrined in a formal decision? If so, should the latter be a separate decision from the decision on the actions to take?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2175
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Determination the failure of an institution

If, when performing the valuation under Article 36 of Directive 2014/59/EU (BRRD), the resolution authority finds that the conditions for resolution or for the write down or conversion of capital instruments and eligible liabilities in accordance with Article 59 are not met, can it ‘reverse’ the competent authority’s determination that the institution is failing or likely to fail?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2174
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 21/01/2022