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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

Application of the exemption under Article 10 RTS and EBICS T

Can an Account Servicing Payment Service Provider (ASPSP) consider that it is not applying the Article 10 Exemption under the Commission Delegated Regulation (EU) 2018/389 “at all” where it permits its Payment Services Users (PSUs) to access balances and transactions information through another direct interface (such as Electronic Banking Internet Communication Standard (EBICS) T) with no systematic or daily strong customer authentication (SCA)?

  • 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: 2021_6235
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 13/04/2022

CRM for off balance sheet commitments

1) Can the part of the off-balance exposure that is covered by the (to be vested) mortgage inscription be taken into account as 'fully secured and completely secured by mortgage' under Article 125(1) CRR?    2) Can the part of the off-balance exposure that is covered by the (to be vested) mortgage guarantee be taken into account as credit risk mitigation under Article 203 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6234
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Original Maturity for off balance sheet items

1) Are loan commitments that constitute (accepted or unaccepted) loan offers to clients to be considered off balance sheet items, which fall under the definition of 'undrawn credit facilities' of Annex 1?    2) The 'original maturity' that is used for the allocation of 'undrawn credit facilities' to either medium risk, or medium/low risk is determined on the basis of the maturity of the commitment or on the basis of the underlying loan of the offer?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6233
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Exemption of promotional loans from the leverage ratio requirement

Is the eligibility to the exemption for passing-through promotional loans to be assessed based on the non-competitive and the not-for-profit nature of the promotional loans granted (as defined under Article 429a(3) CRR) and the recipient of the promotional loan?   In other words, is the leverage ratio exemption under Article 429a(1)(e) CRR applicable to promotional loans irrespective of how the latter are match-funded? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6231
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Application of the conditions set out at Article 104b(2) CRR which apply to trading desks when there is no approval for or operation of alternative internal models.

Can the conditions for trading desks arising pursuant to Article 104b(2) apply where the obligation to establish trading desks pursuant to Article 104b(1) does not arise?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6228
  • Topic: Other issues
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

v10811_m, grandfathered T2 instruments in M 06.00

How shall grandfathered T2 instruments with a residual maturity of less than 1 year be reported in M 06.00 - Creditor ranking (resolution entities) (TLAC3)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/763 – ITS with regard to the supervisory reporting and public disclosure of MREL
  • ID: 2021_6223
  • Topic: BRRD Reporting
  • Date of submission:
  • Published as Rejected Q&A: 15/03/2023

Credit card debt as Credit for Consumption

In order to clarify the answer given to Q&A 5167, should credit card debt be included as Credit for consumption when it comes to FINREP templates?

  • 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: 2021_6219
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 14/03/2023

Application of Risk Retention Requirements to securitisations which underlying assets are real estate or registered movable assets

Does the provision of Article 6(1) of the SecReg apply to securitisations carried out pursuant to Article 7.2 of the Italian Securitisation Law?

  • Legal act: Regulation (EU) No 2017/2402 (SecReg)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6218
  • Topic: Provisions applicable to all securitisations
  • Date of submission:
  • Published as Rejected Q&A: 22/02/2022

Delta calculation internal models

Is an institution required to obtain competent authority’s permission for delta calculation internal model in the situation when the position in option is being closed back-to-back (additional adjustments of closing position due to daily change of the position being closed) on a weekly basis?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6217
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 11/11/2022

Correlation G0556 of COREP C14.00

Please, can you review if the correlation G0556 of COREP C14.00 is correct?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6216
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 28/10/2022

Definition of NPL Ratio for EBA Dashboard and Disclosure

Please clarify, whether or not this inconsistency between NPL ratio definitions in a) EBA Dashboard and b) Disclosure is intended, and which definition is used by EBA for classifying an institute as a “High NPL Bank” (5% threshold).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6215
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Effective notional amount of bucket 3 in formula for interest rate risk category add-on

Article 280a(3) of the CRR establishes the formula for effective notional amount of hedging set j for calculating the interest rate risk category add-on. Shall the square value of the effective notional of bucket 3 be included in the formula?  

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6214
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 22/02/2022

Relevance of a person association's purpose for SME supporting factor application

What is the determining criterion to classify person associations (such as joint accounts, civil law companies, etc.) as “entities engaged in an economic activity”, so that they fall under the preferential treatment of the SME supporting factor?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6213
  • Topic: Other issues
  • Date of submission:

Calculation of goodwill included in the valuation of significant investments in insurance undertakings

A. For the purposes of a deduction under Article 36(1)(b) CRR, should the goodwill (Article 4(1) no. 113 and 115 CRR)  included in the valuation of significant investment                      be calculated at the acquisition date by separating any excess of the acquisition cost over the banking group’s share of the net fair value of the identifiable assets and liabilities of the insurance undertaking or be the amount disclosed as goodwill in the IFRS/NGAAP consolidated balance sheet of the parent institution (or parent financial holding company or parent mixed financial holding company, as applicable) in proportion of the participation recorded for prudential purposes (i.e. in case of participation of 100%, the full goodwill should be deducted, including also goodwill generated at the level of the insurance undertaking)?    B. Would the application of Article 49(1) CRR provide the possibility to risk weight rather than deduct the goodwill included in the valuation of significant investment in insurance undertakings?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6211
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 10/02/2023

SF factors

We found possible inconsistency in CRR texts related to required stable funding for level 2B securitisations notably articles 428z and 428ab

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6209
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 22/02/2022

Implementation of Article 72b(2)(j) of Regulation (EU) No 575/2013 (“CRR”) and whether the contractual provisions governing liabilities are required to refer to the permission regime in order for the liabilities to qualify as eligible liabilities instruments

In question 2013_544, the EBA stated that for Tier 2 instruments, Article 63(j) CRR, in conjunction with Article 77 of the CRR, stipulates that an institution must not effect the call, redemption, repayment or repurchase prior to the date of an instrument's contractual maturity without the prior permission of the competent authority, and that such instruments should therefore contain an explicit reference to these regulatory conditions in their terms. Article 72b(2)(j) CRR states that liabilities may only be called, redeemed, repaid or repurchased early where the conditions set out in Articles 77 and 78a are met. As there is no explicit positive obligation in the legislation to include a reference to the need for resolution authority approval, should eligible liabilities instruments contain an explicit reference to these regulatory conditions in their terms?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6203
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 15/07/2022

FCCM volatility haircuts for eligible rated and unrated securitisation collateral

Does the FCCM approach apply to unrated senior securitisation tranches that qualify as eligible collateral?  If so, which supervisory volatility haircuts apply since there is no CQS associated with these under Sec-SA? In addition, the new securtisation mappings of ECAI ratings to CQS 1-17 have not been translated into Table 1 of Article 224, which continues to refer to CQS 1-4 seemingly under the old securitisation rules, which do not reflect maturity and tranche seniority.  Which supervisory volatility haircuts apply under the new CQS mapping for rated securitisation tranches?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6201
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 22/02/2022

Minimum loss coverage for non-performing exposures under Article 469a

Where the terms and conditions of an exposure which was originated prior to 26 April 2019 are modified in a way that increases the institution’s exposure to the obligor, are all exposures to the obligor that was originated prior to 26 April 2019 also considered as having been originated on the date of the modification and subject to the provisions on the minimum loss coverage for non-performing exposures?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6192
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 21/11/2022

Custom software development and support outsourcing clarification

Company for development and maintenance of banking software has identified the following unclarities related to the EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) that were published by European Banking Authority (EBA) and for which we ask for clarification/interpretation: Is custom software development, which is based on specifications and orders from a bank, and which covers thematic area or function that the bank defined as a critical function, considered as outsourcing (in terms of the referenced guidelines) when the act of development is performed on an occasional (not recurrent and not ongoing) basis? Is regular custom software maintenance and support of software mentioned in the previous bullet point, which covers thematic area or function that the bank defined as a critical function, considered as outsourcing (in terms of the referenced guidelines) if the company providing the software maintenance and support service doesn’t have access to bank’s production environment or data from the production environment? IT department of the bank exclusively maintains their production environment, and only the bank has access to production environment data (first level support). The company offers second level support to the IT department, which consists of consultations for resolving more demanding problems, which are simulated in the test environment (without any access to the production environment). In case any of the services mentioned in the previous bullet points are considered as outsourcing (in terms of the referenced guidelines), must the contract between the company and the bank implement all guidelines or only those that are relevant for the scope of cooperation between the company and the bank? Please confirm that there is no need for the contract to cover guidelines related to cloud services and outsourcing data processing services if the company does not offer cloud services nor processes any data of the bank.  

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/02 - Guidelines on outsourcing arrangements
  • ID: 2021_6191
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Classification of derivatives on precious metals without physical underlying under SA-CCR

For Credit Risk calculation and in order to classify derivatives into the proper Risk Category (Commodity vs. FX Risk) under SA-CCR. Can you please advise on the category to use when derivatives on Gold do not have physical underlying ? Example with a Gold Option for which only the currency for Gold is used (XAU) and where Gold is physically not existing. Also, can you please advise if the same logic have to be applied for other precious metals (not physical) like Silver or Palladium ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6190
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 22/02/2022