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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

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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2019_5005
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 11/09/2020

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
  • ID: 2019_5002
  • Topic: Passporting of mortgage credit intermediaries
  • Date of submission:
  • Published as final Q&A: 03/12/2021

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)
  • ID: 2019_4998
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 11/09/2020

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)
  • ID: 2019_4988
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Classification of a vertical security in a traditional securitisation

Is a vertical security as defined below in a traditional securitisation which refers to x% of the cash flows of the securitised exposures a securitisation position?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4987
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as final Q&A: 07/05/2021

Partially collateralised loans: CCF - collateral simple method approach

How is the RWA is calculated for the undrawn amount of a partially collateralised loan?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4986
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 24/09/2021

Pending credit offers

Can pending credit offers (e.g. offers to provide credit to retail clients that have not been accepted yet) qualify as committed credit facilities for the purpose of Article 424 CRR (e.g. Article 424(2) CRR in case of credit offers to retail clients) and Article 31 LCR DA (e.g. Article 31(3) LCR DA in case of credit offers to retail clients), if such pending credit offers would be irrevocable, binding on the creditor and considered "commitments qualifying for the creditor as agreements to lend" for the purpose of the credit risk framework (in particular Annex I of the CRR), in accordance with EBA Q&A 2017_3376?

  • 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_4985
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 11/02/2022

"Push based" authentication and SCA requirements

Does "push based" authentication fall in the Strong customer authentication (SCA) requirements, based on the security risks "push authentication" poses?

  • 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_4984
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 25/09/2020

MREL subordination for smaller banks

Is the subordination requirement for the MREL of smaller banks (i.e. that are not G-SII or part of a G-SII, top tier banks nor banks subject to Article 45c(6)) subject to the limit of the prudential formula referred to in Article 45b(7)? Does the reference to 8% of total liabilities, including own funds, represent a cap, or does this provision include the possibility of full subordination for MREL? Are the conditions referred to in Articles 45b(7) and (8) applicable to smaller banks?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4983
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 21/01/2022

Services offered by means of ATM by providers

Which is the appropriate payment service for ATM withdrawals, where the ATM provider is required to be authorised but is acting on behalf of one or more card issuers, which are not a party to the framework contract with the customer withdrawing money from a payment account? 

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4982
  • Topic: Authorisation and registration
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Aggregation of curves in the case of real interest rate curves (linked to inflation)

When calculating the supervisory outlier test, in the case of real interest rate curves, (i.e CLF, IGPM, IPCA, UVA, CER, UDI…), how should these factor risk be treated?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/02 - Guidelines on the management of interest rate risk arising from non-trading book activities
  • ID: 2019_4976
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Chief Risk Officer (CRO) Chairman Credit Risk Committee

Supervisors have identified that for some credit institutions located in some EU countries the CRO acts as Chairman of the Credit Committee. The question is if this set-up can be considered as fully compliant with the applicable regulation to ensure the independence of the risk management function.

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2021/05 - Guidelines on internal governance under CRD - repealing EBA/GL/2017/11
  • ID: 2019_4972
  • Topic: Internal governance
  • Date of submission:
  • Published as final Q&A: 01/04/2022

Commitment received to upgrade collateral from Level 2B to Level 1

If a credit institution received a unilateral commitment from another credit institution to trade in 2 business days a collateral upgrade from Level 2B assets to Level 1 assets which last more than 35 business days, could this trade be considered as an inflow?

  • 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_4971
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 24/09/2021

Treatment of fiduciary assets for the purpose of asset encumbrance reporting

Do fiduciary assets have to be included in asset encumbrance 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)
  • ID: 2019_4969
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 11/09/2020

Off balance sheet items in scope of the credit risk framework

Does "off-balance sheet item" as in article 5 point (1) CRR mean: a) off-balance sheet item disclosed under the applicable accounting framework, or b) off-balance sheet item under the applicable accounting framework, irrespective whether the item is disclosed or not, or c) every position or item exposed to credit risk that is not recognised in the balance sheet, irrespective whether such position or item would be disclosed or considered as off-balance sheet item under the applicable accounting framework?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4960
  • Topic: Credit risk
  • Date of submission:

Consolidated supervision

At how many levels should consolidation according to Article 11 CRR be done by a single institution?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4957
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 11/02/2022

Risk weight of EU unrated central bank whose exposures are guaranteed by its EU government which is rated CQS1

What should be the risk weight of an EU unrated central bank whose exposures are fully guaranteed by its EU government which is rated CQS1?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/05 - Guidelines on significant credit risk transfer
  • ID: 2019_4954
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

RWA calculation and the applicable amount of insufficient coverage for non-performing exposures deducted from CET1 items

Under Article 151(1) CRR, can non-performing exposures, or parts thereof, belonging to one of the exposure classes referred to in points (a) to (e) and (g) of Article 147(2) CRR, be exempted from being risk-weighted to the extent that the related applicable amounts of insufficient coverage for those non-performing exposures have been deducted from Common Equity Tier 1 items, in accordance with Article 36(1) (m) CRR2? Can the applicable amounts of insufficient coverage for non-performing exposures belonging to one of the exposure classes referred to in points (a) to (e) and (g) of 147(2) that have been deducted from CET1 items, in accordance with Article36(1)(m) CRR, qualify as 'exposures deducted from own funds' or 'exposures deducted from Common Equity Tier 1 items, Additional Tier 1 items or Tier 2 items, for the purpose of Article151(1) CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_5031
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Issues related to para (89) of the EBA/GL/2017/16 with regards to the calibration procedure of the PD models to be conducted “after taking into account any overrides applied in the assignment of obligors to grades or pools”

With regards to the interpretation of the requirement reported in paragraph (89) of the Guidelines on PD estimation, LGD estimation and the treatment of defaulted exposures (EBA/GL/2017/16), is it correct that if a ranking method or overrides policy has changed over time, the institutions cannot “conduct the calibration after taking into account any overrides applied in the assignment of obligors to grades or pools”, because the relevant data is not available (e.g. in case of a model change the rating produced by the new PD model cannot include the override process)? With regards to the interpretation of the requirement reported in par. 89 of the GLs, is it correct that if a ranking method or overrides policy has changed over time, the institutions should “analyse the effects of these changes on the frequency and scope of overrides and take them into account appropriately” in the annual review of estimates framework, once the relevant data becomes available, meaning that the new rating attribution process has been fully deployed and used by the analysts of the Supervised Entity?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2017/16 - Guidelines on PD estimation, LGD estimation and the treatment of defaulted exposures
  • ID: 2019_5029
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 11/02/2022

Provisions relating to securitised assets which have been derecognised for accounting.

Template C.14 (Sec Details col 210) requires reporting of information on securitised exposures including associated provisions. The memo standardised calculation C.14.1 (Sec Details Approach col 448) also requires provisions on underlying assets as an input to the SEC-SA calculation. What provisions should be used when the securitised exposures have been derecognised by the reporting entity from an accounting perspective and provisions are therefore not made by the originator bank reporting entity?

  • 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_4953
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022