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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

Consumer mandate under Merchant Initiated Transactions

Terms and Conditions to outline future charges (under Merchant Initiated Transactions (MITs)) may be disclosed by the booking entity (such as online travel agent or brand/hotel group) instead of the hotel merchant. Does the consumer acknowledgement of these terms through a party other than the merchant (in this case, the hotel) meet the MIT requirement? Will the merchant in this situation continue to be the hotel, instead of the intermediary?

  • 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: 2019_4794
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Merchant Initiated Transactions exemption for hotel transactions

For the following scenarios, does digital acknowledgement by the consumer at time of booking that subsequent charges may be collected adequately meet the requirement for Merchant Initiated Transactions if SCA is also taken at time of booking:i. total room charges and applicable taxes disclosed to the consumer when a prepaid rate has been selected.ii. deposit amount disclosed to the consumer when the reservation requires payment of a deposit to guarantee the booked room and/or dates.iii. disclosed late cancellation or no-show fee incurred by the consumer if the consumer fails to cancel their reservation per the disclosed cancellation policy.iv. disclosed descriptions of types of charges that will be processed by the hotel merchant if incurred after payment for the stay has been settled. Examples include but are not limited to charge-to-room meals, spa treatments, retail purchases, mini-bar consumption identified by housekeeping and room damage.

  • 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: 2019_4792
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Processing payments for hotel reservations

Can hotels continue to process payments for which strong customer authentication (SCA) has not been completed at the time of reservation, or for charges which do not become apparent until after the customer has departed the hotel and for which he/she may refuse to conclude a first or additional 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: 2019_4791
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Keyed Mail Order or Telephone Order (MO-TO) transactions

In the hotel industry, if a consumer contacts the hotel directly to make a reservation, the hotel may need to manually key the payment details into their payment terminals. Does this qualify as a Mail Order or Telephone Order (MO-TO) transaction?

  • 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: 2019_4790
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Treatment of electronic bookings similar to Mail Order and Telephone Orders (MO-TO) transactions

Would hotel use-cases, which include reservations taken by third parties (such as online travel agents or brand/hotel group) for the merchant and subsequent transactions (such as post-booking processing of prepaid rates or deposits, processing of cancellation/no-show fees, processing of post-checkout charges) fall under the scope of Mail Order and Telephone Orders (MO-TO) transactions and are they therefore excluded from the strong customer authentication (SCA) requirements?

  • 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: 2019_4788
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 12/03/2021

Treatment of securitisation Class A notes guaranteed by a Member State

Pursuant to specific national decree, an originator of NPLs under a securitisation transaction complying with certain requirements may request the government to guarantee the payments of interest and principal on the senior tranche of asset-backed securities. Where senior noteholders of a securitisation benefit from this unconditional, irrevocable and first-demand guarantee from a Member State, what is the expected treatment in the LCR for securitisation notes with respect to Articles 10 and 13? Do we have to consider that article 13 prevails to any other article when qualifying the eligibility for a securitisation?

  • 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: 2019_4786
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 20/11/2020

Unsuccessful authentications and declined transactions effect on the counters of cumulative amount and number of consecutive transactions

Do failed authentications or declined transactions increase the counters of cumulative amount or number of hits?

  • 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: 2019_4785
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 06/12/2019

Delayed or deferred PIN for wearable devices

Is the PIN entered when the cardholder takes on wearable device on, still valid as a knowledge element for one or several transactions later the same day, if it can be ensured that the device has not been taken off?

  • 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: 2019_4783
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 25/09/2020

Termination rights – Distinguishing between Guidelines which are directed towards ‘all outsourcing arrangements’ from those that are directed towards ‘outsourcing arrangements for critical and important functions’

Are paragraphs 98 and 99 (section 13.4) of EBA/GL/2019/02 - Guidelines on outsourcing arrangements directed towards ‘outsourcing arrangements for critical and important functions’ only or ‘all outsourcing arrangements’?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4782
  • Topic: Internal governance
  • Date of submission:
  • Published as final Q&A: 20/11/2020

Dealing with leasing (car leasing) in the calculation of the structural liquidity ratio (NSFR)

Can leasing contracts (e.g. car leasing), which are accounted for as tangible fixed assets according to national accounting standards, be treated in the NSFR according to the actual inflow/cash flow?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4780
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Validation rule v6405_m

Validation rule v6405_m does not calculate right when the credit institution has only T1 capital and no T2 capital. Report is COREP own funds.

  • 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: 2019_4778
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 08/05/2020

Treatment of open repos for leverage ratio exposure measure

Could securities financing transactions (SFT) with no explicit end date (but which can be unwound at any time by any counterparty, e.g. open repos) be considered as bearing economic similarity between open maturity and overnight SFTs? If so, is it possible to net the cash payables and cash receivables in SFTs with the same counterparty subject to contractual legal rights to close the trade on the next day and in principle similar to overnight trades?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/62 - DR with regard to the leverage ratio
  • ID: 2019_4777
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

More than one transaction from a single consumer initiated transaction

When a consumer elects to add an additional item to their purchase at the time of checkout (a cross sale) they are making two purchases from two different merchants in a single session. Is SCA required for both of these transactions? This would make the user experience very clumsy and awkward as the consumer would have to go through SCA twice in a row during a single checkout.

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4776
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Relevance of third country capital requirements for the calculation of minority interests amounts of a subsidiary to be included at the consolidated leve

When applying Article 84(1), point (a), of Regulation (EU) No 575/2013 (CRR) in respect of subsidiary institutions in third countries, should the excess capital attributable to minorities be determined by applying, namely in subparagraph (i), the provisions and requirements of CRR, together with any additional local requirements, to the extent these have to be met with CET1 capital?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4775
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 03/12/2021

Definition of private equity exposures in articles 155(2) and 155(3)

Do “private equity exposures in sufficiently diversified portfolios” eligible to a Risk Weight (RW) of 190% in simple risk weight approach in article 155(2) and a PD of 65% in the PD/LGD approach in article 155(3) refer to any non-listed equity instrument and/or shares in a CIU or units in a CIU for which the underlying exposures are non-listed equity instruments, provided that they are part of a sufficiently diversified portfolio?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4774
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Scoping and content for template 6 of the EBA GL Disclosure of NPE/FBE

Should the gross carrying amount that should be reported in column “a” of template 6 of the EBA GL Disclosure of NPE/FBE be the gross carrying amount that is reported in Finrep template F20.07, or should it be the gross carrying amount from Finrep template 18? i.e. should it also include loans advances held for trading to non-financial corporations or not?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/10 - Guidelines on disclosure of non-performing and forborne exposures
  • ID: 2019_4768
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of tax accounts

Can a tax account be treated as a level 1 asset according to Article 10(1)(c) Delegated Regulation (EU) 2015/16, and be included in the liquidity buffer?

  • 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: 2019_4764
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Clarification about the definition of default for retail exposures

It is unclear how to determine what should be considered as retail exposures for the purpose of the definition of default for retail exposures.What kind of exposures should be considered to determine default under Article 178 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/07 - Guidelines on the application of the definition of default under Article 178 CRR
  • ID: 2019_4757
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Requirement for credit institutions and electronic money institutions wishing to offer PIS and AIS to take out professional indemnity insurance or a comparable guarantee / Obbligo di dotarsi di un'assicurazione per la responsabilità civile o analoga garanzia, per gli Enti creditizi o Istituti di moneta elettronica che vogliono offrire i servizi di PIS e AIS

Can an electronic money institution or a credit institution wishing to offer Payment Initiation Service (PIS) and Account information service (AIS) consider its own funds to be a guarantee that is comparable to professional indemnity insurance (PII)?***IT:   Un Istituto di Moneta elettronica o un Ente creditizio che vuole offrire i servizi di PIS e AIS, può considerare i fondi propri come analoga garanzia rispetto all’assicurazione per la responsabilità civile professionale? 

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2017/08 - Guidelines on the criteria on how to stipulate the minimum monetary amount of the professional indemnity insurance
  • ID: 2019_4753
  • Topic: Monetary amount of the professional indemnity insurance
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022