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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.

List of Q&A's

Reporting of PISP initiated payments

Is there a requirement to segregate the Payment Initiation Service Provider (PISP) initiated payments which were executed without Strong customer authentication (SCA), by the relevant availed exemption used? Or are PISP initiated payments, only required to be presented in Bulk (Value, Volume, SCA/Non-SCA)?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/05 - Guidelines on fraud reporting under PSD2 (amended by EBA/GL/2020/01)

Treatment of direct recoveries under AMA

Can a bank use gross losses net of direct recoveries in modelling for capital purposes under Advanced Measurement Approach for operational risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Reporting of fraud by the acquirers

Regarding the fraud definition, could you please clarify how the following fraud examples should be classified by the acquirers

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/05 - Guidelines on fraud reporting under PSD2 (amended by EBA/GL/2020/01)

Calculation of absolute value that should be considered according to Article 47c CRR as amended by Regulation UE 2019/630- Deduction for non-performing exposure

How to calculate the absolute value attributable to each non-performing exposure “where the absolute value attributable to each non-performing exposure is determined by multiplying the amounts deducted pursuant to point (d) of Article 36(1) by the contribution of the expected loss amount for the non-performing exposure to total expected loss amounts for defaulted or non- defaulted exposures, as applicable" as indicated in the Article 47c 1(b) (iv)

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Treatment of secured lending or capital market-driven transactions that would require an outflow rate higher than 25 % but they have been closed with eligible counterparties

Delegated Regulation (EU) 2018/1620 in article 1 (17) (a) states that a 25% outflow rate has to be applied to secured lending or capital market-driven transactions, closed with eligible counterparties, that would require an outflow rate higher than 25 %. Based on the new LCR Templates published on EBA websites and Delegated Regulation (EU) 2018/1620, it’s not clear in which row these transactions should be reported. Could you provide some instructions for the right reporting?

  • 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)

Treatment of Central Bank Overnight deposits in ALMM Template C71

Should central bank fixed term overnight deposits be included within ALMM Template C71 Row 120 "ALL OTHER ITEMS USED AS COUNTERBALANCING CAPACITY"?

  • 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)

Interpretation of articles 36 (1) f and 42 of CRR regarding equity-settled share-based payments.

How should be treated shares that are bought and specifically affected to hedge equity-settled share-based payments (payments in equity instruments) ?

  • 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

LCR treatment of settled-to-market derivatives

Should settlement payments (or receipts) made in the context of derivatives structured as "settled-to-market" (or "STM") be considered under Article 2(1) of Delegated Regulation (EU) 2017/208?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2017/208 - RTS for additional liquidity outflows corresponding to collateral needs resulting from the impact of an adverse market scenario on an institution's derivatives transactions

Online foreign exchange

Does the business of foreign currency exchange-Forex require an authorisation as payment institution under PSD2, provided that: (a) the currency exchange takes place via online exchange platform; and (b) the client deposits certain base in cash or sends it by bank transfer to a bank account of the Forex company; and (c) the client receives the quote (exchanged) currency in an online client account in the platform from where the exchanged amount may be sent to a client's bank account or may be withdrawn in cash at the Forex company's offices?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Compliance of the securitisation of residual values through expectancy rights (“Anwartschaftsrechte”) with the STS criteria for non-ABCP securitisation and for ABCP securitisation

Does a securitisation of residual values through expectancy rights qualify for STS in general in relation to non-ABCP securitisation and ABCP Securitisation (subject to compliance with all other STS criteria)?

  • Legal act: Regulation (EU) No 2017/2402 (SecReg)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

C66: undrawn ECB open market operations backed with pre-positioned own issuances (retained CB or ABS) as “Undrawn committed facilities received”.

In the specific case of own issued (Retained Covered Bonds or ABS) pre-positioned assets in collateral pools with the Central Bank. Can the amount of additional funding that could be obtained out of such pre-positioned assets be reported in the counterbalancing section of C66 template in the row 1000 as “Undrawn committed facilities received”? In particular, undrawn part of ECB open market operations backed but those assets.

  • 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)

Purchased credit derivative protection against a counterparty credit exposure

Does a purchased credit derivative protection against a counterparty credit exposure is out of the scope of own funds requirements for CVA risks in application of article 382?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Minimum requirement for own funds and eligible liabilities (MREL) - Waivers

Are the conditions of Article 45f(4) (or (3), depending on the case) exhaustive? In other terms, when assessing a request to waive an individual MREL requirement under Article 45f(4) (or (3) depending on the case) of BRRD, is the resolution authority required to assess only the conditions set out in the relevant paragraph (s), or is it allowed to require, in its policies and procedures, the fulfilment of other additional conditions?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Losses due to fraud per liability bearer / Perdite dovute a frode per portatore di responsabilità

Please clarify the requirement in guideline 1.6 (b) of the EBA Guidelines on fraud reporting under PSD2 with regard to recognising losses due to fraud per liability bearer. *** IT: Si chiede cortesemente di chiarire il requisito espresso all'interno dell'orientamento 1.6(b) in materie di obblighi di segnalazione delle perdite dovute a frode per portatore di responsabilità

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/05 - Guidelines on fraud reporting under PSD2 (amended by EBA/GL/2020/01)

EBA validations rules for DPM 2.8 with reference to rule V3975_S.

According Q&A 2014_1203, interest income/expenses generated by hedge accounting derivatives used to hedge interest risk shall be presented "according to the contribution of the hedged instrument to profit or loss, i.e. in the column corresponding to the interest expenses / income of the hedged instrument, and therefore, with a negative sign. Validation rules v3900_s and v5693_s have been demoted non-blocking also to allow for that treatment." The Q&A 2014_1203 refers to templates F02.00 “Statement of profit or loss” (rows 070 and 130) and F16.01 “Interest income and expenses by instrument and counterparty sector” (row 250), but does not consider the template F 31.2 “Related parties: expenses and income generated by transactions with” (rows 010 and 020, column 010).

  • 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)

Tied credit intermediary that represents a number of creditors or groups which does not represent the majority of the market

What type of criteria should a tied credit intermediary abide to in order not to go beyond the legal limit of “the majority of the market” when establishing relationships with creditors? How should this majority be calculated and how many times do intermediaries need to update this information in order to remain compliant?

  • Legal act: Directive 2014/17/EU (MCD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

The additional column C015 “Code” to template C 67.00 contains ambiguity in the Annex IV guidance under the ITS to be implemented at Mar-20: 1.2.8.015 “This code is a row identifier and shall be unique for each row in the template”. It is unclear what identifiers are required in column C015.

The additional column C015 “Code” to template C 67.00 contains ambiguity in the Annex IV guidance under the ITS to be implemented at Mar-20: 1.2.8.015 “This code is a row identifier and shall be unique for each row in the template”. It is unclear what identifiers are required in column C015. The annotated template released in DPM 2.9.1 under ‘Changes compared to previous version phase 2.9.1’ for COREP states that “Metric = (si289) Entity code [si]”. However the guidance does not specify what this entity code is required to be, and the cell appears to require a free-text value (si289 does not appear to be included in the list of values in the 2.9.1 release documentation). In final ITS 2019/01 “Final Report on Draft Implementing Standards amending Implementing Regulation (EU) No 680/2014 with regard to COREP” and the associated Annex IV “Instructions for completing the additional monitoring tools template of Annex XVIII” a new column is added to C 67.00 (C015 “Code”) – what values are required to be populated in this column?

  • 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)

EBA Benchmarking Exercise - C103 - RWA + RWA - RWA ++ RWA --

In order to achieve (RWA + RWA - RWA ++ RWA --) to fill in template C103 of EBA Benchmarking Exercise, when we do not have exposure in the previous year, i.e., in the formula when n = 0, which p- value should we consider?

  • 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)