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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

Treatment of decreases of impairments in the calculation of the exposure value

In the context of published Q&A 2014_1087 how should a credit institution treat decreases of impairments, value adjustments or provisions (in case of reduced identified losses) recognised during the year, i.e. in the interim period, in the case where the competent authority has not given its permission to include the interim profit into the calculation of Common Equity Tier 1 capital, and the credit institution has not reflected the amounts with a corresponding "immediate reduction in Common Equity Tier 1 capital" although the changes in impairments, value adjustments or provisions for off-balance sheet items are reflected in interim profits or year-end profits?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 183/2014 - RTS for the calculation of specific and general credit risk adjustments
  • ID: 2016_2629
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 23/09/2016

Asset encumbrance Reporting vs. Finrep Reporting – Definition of equity instruments not aligned

The following validation rule is not correct:v2816_m: sum({F 32.01, r030, (c010, c060)}) = sum({F 01.01, c010, (r070, r093, r110, r150, r172, r176, r235)})’.This validation rule excludes row 260 of F 01.01. An entity has to disclose ‘Investments in subsidiaries, joint ventures and associates’ in this row.By definition, row 260 of F 01.01 includes equity shares that are representing the ownership in subsidiary, joint ventures or associates.

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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_2628
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 04/08/2017

Retail exposures above EUR 1m - definition and understanding

Would a private individual client need to be regarded as "non retail" if the original exposure is above EUR 1 million (line EUR 2m) or could he stay in the "Retail" exposures class if his EAD is below EUR 1million (EAD close to zero) or the drawn amount is below euro 1m (drawn amount below EUR1m)?Clarity would be appreciated for both the standardised and IRB approach.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2626
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 07/10/2016

State guarantee of newly issued liabilities

Should liabilities issued under Article 32(4)(d)(ii) of Directive 2014/59/EU (BRRD) meet the criteria of Additional Tier 1 or Tier 2 instruments?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2622
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 28/01/2022

Use of resolution tools without issuing a formal decision

In light of Article 32(1) and Article 82 of Directive 2014/59/EU (BRRD), should the decision initiating resolution spell out which resolution tool/s, among those listed in Article 37(3) BRRD, will be applied, or is it possible to apply resolution tools without issuing a formal decision?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2621
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Direct fiscal impact and systemic implication in Article 3(6)

How can the terms “direct fiscal impact” and “systemic implication” in Article 3(6) be transposed in a way that removes ambiguity?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2620
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Special resolution regimes for credit institutions not covered by the Directive / partly resolved via insolvency

Does Directive 2014/59/EU (BRRD) prevent Member State to adopt special resolution regimes (including, e.g., bail-in) for credit institutions (i) that are not covered by the Directive; or (ii) in scope of the BRRD, whose preferred strategy is liquidation under national insolvency proceedings?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2619
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Toleranzschwellen bei Korrekturmeldungen gemäß Verordnung (EU) Nr. 680/2014

Unterhalb welcher Materialitätsschwellen dürfen Korrekturmeldungen gemäß Verordnung (EU) Nr. 680/2014 unterbleiben? Ab welchen Aufwandsschwellen, die für die nachträgliche Korrektur und Einreichung zu erbringen wären, kann die Einreichung korrigierter Meldungen unterbleiben?

  • 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_2613
  • Topic: Supervisory reporting - Other
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Exposure Value under the Equity method of accounting

What exposure value should be used for Large Exposure purposes in situations where there is a difference between the accounting value used for IFRS accounting purposes and the value used for FinRep regulatory purposes?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2612
  • Topic: Large exposures
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Counterparty details for central bank eligible assets in Concentration of Counterbalancing Capacity template C 71.00

In the event that an institution pre-positions retail customer credit claims into a standard central bank emergency liquidity operation, which counterparty should be reported as the counterparty to the assets in template C 71.00?

  • 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_2611
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 12/01/2018

Reporting of currency for undrawn committed facilities in Concentration of Counterbalancing Capacity template C 71.00

What currency identifier should be reported on template C 71.00 for an undrawn committed facility that is available to draw in multiple currencies and how should it be reported on significant currency returns?

  • 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_2609
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 12/01/2018

OSII capital buffer

Is Article 131(8) of Directive 2013/36/EU applicable on a situation, where an Other Systematically Important (“OSII“) institution in a member state is a member of a OSII group with no EU parent institution, but with an EU parent financial holding company in another member state instead?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2607
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 01/09/2017

How are branches included in the scope of resolution funds?

1) What does "Union branches" mean in DR 2015/63: (i) all branches of credit institutions active in the Union regardless of the jurisdiction in which they are established (ii) all branches of credit institutions that are established in the Union (iii) all branches of credit institutions that are established in the EEE? 2) Non-EEE branches are not mentioned in the DR 2015/63. Does that mean that they are excluded from the scope of this regulation or does that mean that they are included as any other 1cinstitutions 1d, as defined in Article 2 §1 23) of BRRD? - If they are included, does that mean that, as the SRB does not include them in the SRF, NRA should include them in their national schemes? - If they are excluded, how will a level playing field among banking entities be guaranteed? 3) Recitals 1 and 2 of DR 2015/63 mention the need of a special framework for EU-branches and even mention a specific delegated act. Is there any project in that field?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2016_2605
  • Topic: Cross-border resolution
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Clarification on the Geographical Area breakdown

Is the list of Geographical areas (countries, macroregions) of the template C 103.00 of Annex I complete? Some relevant EU countries are omitted, like Spain. Other non EU relevant countries in term of exposures like US are omitted too. Is there any materiality threshold below which portfolios corresponding to certain Geographical Areas should not be included in templates C 103.00 and C 105.02 of Annex III?

  • 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_2600
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:

Treatment of retail exposures secured by property under IRB

How should institutions treat a retail exposure for an SME that has a minor property collateral (and thus it is partly secured by immovable property) but the purpose of this loan is not property/mortgage finance? Are the correlation coefficient prescribed in Article 154(3) and the minimum LGD requirement in Article 164(4) applicable for the full exposure?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2599
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Reporting of initial margin posted in the context of derivative transactions and contribution to default funds to CCPs

Where should assets which a bank has posted on its own behalf as initial margin in the context of derivative transactions and contribution to default funds to CCPs be reported in the template C 60.00?

  • 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_2598
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

Expected outflows from derivatives

Could a designated/purpose-specific transaction structure consisting of two Total Return Swaps (“TRS”) on the same underlying basket of non-HQLA eligible equities with the same non-bank market counterparty where one physically settled TRS delivers the performance of the equity basket to the counterparty until the point in time when the bank elects to early terminate the transaction and the other cash settled TRS delivers the performance of the equity basket to the bank until maturity be treated as a net derivative inflow for the bank, within the LCR according to Article 32(5) of Delegated Regulation (EU) 2015/61?

  • 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: 2016_2595
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

CRD Art. 140(4) in conjuction with CRR Art. 327 and CRR Art. 112

For the purpose of reporting as per point 3.4.3.2 of Annex 2 (Annex 2 of EC Implementing Act on Reporting) page 109 ''Own funds requirements for relevant credit exposures, trading book exposures and securitisation exposures in accordance with Article 140(4) CRD and determined in accordance with Part Three, Title II and Title IV of the CRR'' , are the referred CRR Art 112 restrictions under CRD Art 140(4) applicable also to IRB and also specifically for the purpose of point (b) Art 140(4) do the restrictions of CRR Art. 112 apply considering CRR Art. 327?

  • 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_2594
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Recognition of unfunded credit protection / guarantees under Advanced IRB

Does an institution which has been granted permission to use the IRB Approach, including to use own estimates of LGD and conversion factors have the option to use the credit risk mitigation techniques of Chapter 4 (general CRM rules) of Regulation (EU) No 575/2013 (CRR), or must it make adjustments using its own estimates?Do the requirements for recognition of CRM under Chapter 4 apply to AIRB firms, or are these superseded by the Chapter 3, Section 6 requirements for IRB firms, including Article 183 CRR regarding recognition of unfunded credit protection for AIRB firms?For the purposes of Art 161(3) CRR, how does one determine the relevant risk weight of "a comparable, direct exposure to the guarantor"? Art 161(4) CRR gives guidance, but this is specifically with regard to the application of Art 153(3) CRR, i.e.: the "double default" approach. Is Art 161(4) CRR also relevant for Art 161(3) CRR?Is the "double default" approach detailed in Art 153(3) CRR and in Chapter 4 (Articles 202 and 217 CRR) also available for AIRB firms?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2593
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 20/01/2017

Use of financing arrangement for covering the gap between transferred assets and liabilities in case of application of the sale of business tool

In light of Article 101(1) of the BRRD, is the resolution authority authorised to use the financing arrangement to finance the gap between all the purchased assets and liabilities, by the means of a direct grant/subsidy, in the amount of the negative difference between the assets and liabilities under a condition that the contribution is compliant with the Union State aid framework?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2591
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 30/09/2016