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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

Transactions in the banking book where no strike is available

For a put option in the non-trading book, where there is no guaranteed minimum payment and the price will only be determined after the occurrence of specified events i.e. there is no strike price for the put option, how would the notional amount be calculated in accordance with Article 15(f)(1)(b)(ii) of Regulation (EU) No 241/2014? Should the notional be determined based on an equity delta equivalent amount?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions
  • ID: 2019_4517
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Eligibility of convertible instruments as financial collateral

Do financial instruments that are not included in a main index and not traded on a recognised exchange, but which can be converted anytime at the discretion of the owner of the instrument into equities that are included in a main index or are traded on a recognised exchange qualify as eligible financial collateral?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4509
  • Topic: Credit risk
  • Date of submission:

Content of eIDAS certificates if agents or outsource providers are involved

Who shall be the Subject Distinguished Name (DN) in the situation described in EBA Opinion on eIDAS (EBA-Op-2018-7) item 21? Does information on agents or outsource providers has to show up in the certificates? 

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4507
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 26/04/2019

Technical past due situation - Factoring

How should the situation in terms of technical default be treated when there are two past due purchased receivables (each individually material) and one of them is repaid by the obligor while the second one is still due?

  • 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_4505
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 12/02/2021

Calculation of past due days on material credit obligations

For the purpose of the definition of default, should days when material credit obligation was past due, but repaid later on, be included in the calculation of 90 (180) consecutive days according to Article 178 of CRR, paragraph 1, point (b)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4504
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 12/02/2021

Applicability of Look through Approach to SPV (Article 132 CRR)

May the look-through approach be applied for exposures in Notes issued by a special purpose vehicle, with no tranches, - which is unclear whether it qualifies as an undertaking for collective investment according to the applicable national law -, where the paid out of the each Note are the net proceeds of the loan receivables portfolio allocated to such Note (provided the additional requirements set for the look through approach are duly met)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4502
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 30/07/2021

Article 395 CRR – Shadow entities large exposure limits

If a bank invests through a vehicle, incorporated under the applicable Securitisation Law, with separate compartments per investor and where the paid out of each Note is segregated per portfolio of loans, may each Note be deemed a separate shadow entity?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2015/20 - Guidelines on limits on exposures to shadow banking entities which carry out banking activities outside a regulated framework under Article 395(2) of CRR
  • ID: 2019_4501
  • Topic: Large exposures
  • Date of submission:
  • Published as final Q&A: 15/01/2021

Requirements for the usability of an ECAI within the framework of the Internal Assessment Approach pursuant to Article 259(3) of Regulation (EU) No 575/2013 – before amendments introduced by Regulation (EU) No. 2017/2401 - and Article 265 Regulation (EU) No 575/2013 as amended by Regulation (EU) No 2017/2401. - Anforderungen an die Verwendbarkeit einer ECAI im Rahmen des internen Bemessungsansatzes gemäß Artikel 259 Absatz 3 der Verordnung (EU) Nr. 575/2013 – in der Fassung vor den durch die Verordnung (EU) 2017/2401 eingeführten Änderungen – und Artikel 265 der Verordnung (EU) Nr. 575/2013 in der durch die Verordnung (EU) 2017/2401 geänderten Fassung

Is it possible to use published ECAI methods within the framework of the Internal Assessment Approach pursuant to Article 259(3) CRR and Article 265 CRR – as amended by Regulation (EU) No 2017/2401-, in consideration that neither in Implementing Regulation (EU) No 2016/1801 nor in Q&A 4274 there is a reconciliation requirement specifically applicable to securitisation positions from rating grades to credit quality steps pursuant to Article 261 CRR (as not amended) and Articles 263 and 264 CRR (as amended by Regulation (EU) No 2017/2401)? Ist es möglich, im Rahmen des internen Bemessungsansatzes gemäß Artikel 259 Absatz 3 CRR und Artikel 265 CRR – in der durch die Verordnung (EU) 2017/2401 geänderten Fassung – von ECAI veröffentlichte Methoden zu verwenden, im Hinblick darauf, dass weder die Durchführungsverordnung (EU) 2016/1801 noch die Q&A 4274 ein spezifisch auf Verbriefungspositionen anwendbares Erfordernis der Abstimmung von Ratingklassen auf Bonitätsstufen gemäß Artikel 261 CRR (in der nicht geänderten Fassung) sowie Artikel 263 und 264 CRR (in der durch die Verordnung (EU) 2017/2401 geänderten Fassung) enthalten?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4500
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as final Q&A: 07/05/2021

Treatment of exposure for unsettled repurchase and reverse repurchase agreements

For leverage ratio calculation purposes, it is asked to clarify the exposures to be recognized for both repurchase and reverse repurchase agreements, with specific reference to unsettled transactions.

  • 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_4499
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Revocation of future dated Payment Initiation Services (PIS) payments

Is the Bank (an ‘Account Servicing Payment Service Provider’(ASPSP)) prohibited under PSD2 from acting on the following unsolicited customer instruction:- Customer asks their Bank to cancel a future-dated payment, or a series of recurring future-dated payments - where the original consent for the payment(s) was given by the customer to a Payment Initiation Services Provider (PISP).In this scenario, is the Bank required to advise the customer that the Bank cannot accept the customer’s instruction to revoke these future payments; and that only a revocation instruction received via the PISP can be accepted by the Bank?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4496
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 03/12/2021

Use of the last available data for risk quantification sample and out-of-time validation sample

Given the requirements of articles 175(4)(b) and 179(1)(a) , in case of a model development, should the last available one-year snapshot be used for risk quantification purposes (i.e. for the computation of the Long-run average default rate) or be set aside for validation tests?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4495
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Definition of exposure in non-significant business units and relating “significance” test

A) Can you please clarify how exposures in non-significant business units in Art. 150(1) (c) should be intended? B) Can you please clarify which are the criteria for such a “significant” test.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4490
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Materiality threshold and calculation method for materiality ratio for the purpose of application of Article 150(1)(c) for types of exposures that are immaterial in terms of size and perceived risk profile

A) Can you please clarify whether the 10%/5% threshold to define materiality for “exposure classes” are valid also as for “types of exposures”? In case not, can you please specify which thresholds should be considered for the abovementioned purpose?B) As for the materiality ratio to be compared against the thresholds can you please clarify how it should be computed with reference to the following points:1. Should the numerator include only the exposures for which the application for PPU is being sought under Article 150 (1) (c) by excluding exposures for which PPU has already been granted pursuant other points of Art 150 (1) and exposures not to be included in the calculation of RWA for equity exposure pursuant to Art. 155 (1) (i.e. Equity exposures risk weighted at 250% in accordance with Art. 48 (4) of Reg. EU 575/2013 and those deducted from CET1 in accordance with Part Two of Reg. EU 575/2013)?2. Should the ratio be computed only at solo level or both at solo and consolidated level, in case an application is limited to only one Legal Entity (LE) of a Large Group?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4489
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 21/05/2021

Original maturity of credit lines until-further notice

For risk classification as off-balance sheet item according to Annex I CRR, is the original maturity longer than one year where non-retail credit lines until further notice (i.e. no fixed maturity) may be cancelled with 3 months advance notification period and even immediately in case the borrower becoming delinquent or declaring bankruptcy?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4486
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Strong customer authentication requirement on pay-by-invoice payment transactions

Does Article 97(1)(b) PSD2 apply for pay-by-invoice when the payer's funds are covered by a credit line extended by a payment service provider?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4484
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Unattended terminals and Transaction Risk Analysis (TRA) exemption and related Payment Service Providers (PSP)’s liabilities rules

Provided that both the payer’s Payment Service Provider (PSP) and the payee’s PSP can apply the strong customer authentication (SCA) exemption, without prejudice to the last say of the payer’s PSP, can a payment made at highway toll booths be treated as the one performed at the unattended terminals for transport fares?

  • 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_4480
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 19/06/2020

Calculation of foreseeable dividend to be deducted from interim profits when interim dividend has been paid

How exactly is the amount of interim profit to be included in Common Equity Tier 1 calculated according to Article 2(2) to (4) of the Regulation (EU) 241/2014 when the interim dividend has already been paid out and yet no final divided has been formally decided or proposed to the institution’s relevant body?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4477
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 15/05/2020

2% threshold in template C.09.04

Which is the correct way to calculate the 2% threshold for general credit exposures in the context of the institution specific counter-cyclical capital buffer (CCB)?

  • 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_4474
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 08/05/2020

Meaning of “portfolio” within “sufficiently diversified portfolios” in Article 155(2)

How should the term “portfolio” be understood in the context of the 190% risk weight for private equity exposures in “sufficiently diversified portfolios” in Article 155(2) of the CRR? Does it refer to the whole institution’s portfolio of private equity? Or to any of the “portfolios” that an institution has identified for internal risk management purposes instead?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4472
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 07/05/2021

Applicable methodology for unfunded reserves and liquidity reserves

How should the risk-weight of reserves for which the computation of D and A is not required be determined?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4466
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022