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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

Supervisory Benchmarking Exercise 2019: RWA- and RWA --

For the purpose of Template C103 institutions shall report RWA- and RWA--. According to the corresponding instructions (Annex IV), RWA- and RWA-- result from the application of PD- and PD-- (instead of the institution’s PD values). For this purpose, shall regulatory PD-floors as defined in art. 160 (1) and 163 (1) CRR be applied?

  • 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: 2018_4427
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of originated credit-impaired financial assets

Is it possible to apply the rules valid for purchased assets defined in Article 166(1) CRR for originated credit-impaired financial assets as well?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4426
  • Topic: Model validation
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Scope of "Written Credit Derivatives"

Under Article 429a(5) of the Regulation (EU) No 575/2013 (CRR), as modified by Commission Delegated Regulation (EU) 2015/62, for written credit derivatives, institutions shall include in the exposure value the effective notional amounts, in addition to the treatment laid down in paragraph 1. Is it allowable to exclude from the scope of written credit derivatives, OTC derivatives on high credit quality central government bonds?

  • 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: 2018_4423
  • Topic: Leverage ratio
  • Date of submission:
  • Published as final Q&A: 26/02/2021

Reclassification of own funds instruments from a grandfathered category to a fully eligible category and purpose of grandfathering provisions

Is it permissible for an institution, and if so under which circumstances and/or criteria, to reclassify own funds instruments from a grandfathered category to a fully eligible category in particular in a context where no change in the relevant applicable laws or terms and conditions of the reclassified instruments has taken place before the reclassification? Would the answer be the same for a reclassification of own funds instruments from a disqualified category to a fully eligible category?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4417
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 21/12/2018

Own funds

Article 63 j) of CRR states that "the instruments or subordinated loans, as applicable, may be called, redeemed or repurchased or repaid early only where the conditions laid down in Article 77 are met, and not before five years after the date of issuance or raising, as applicable, except where the conditions laid down in Article 78(4) are met". If an institution has a right of early redemption (not connected to the conditions laid down in Article 78(4)) which is effective five years after issuance but which has to be notified at least two years before redemption, is the instrument eligible as Tier 2 Capital ?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4416
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Dynamic linking for batch transactions

In relation to payment transactions for a batch of remote electronic payments to one or several payees, please clarify whether the payer needs to be made aware of every payee in the batch?

  • 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: 2018_4415
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 20/12/2019

Usage of SMS for dynamic linking

Please clarify whether payment information and an authentication code sent via SMS to a mobile phone complies with the requirements for Dynamic Linking as defined in Article 5 of the RTS, and in particular paragraph 5.2.

  • 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: 2018_4414
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 26/02/2021

Qualified certificate under eIDAS for ASPSP

Is it required for an Account Servicing Payment Service Provider (ASPSP) to use qualified certificates under eIDAS to identify itself to a Third Party Provider (TPP)?

  • 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: 2018_4413
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 14/06/2019

Counterparty of deposits taken from a fiduciary bank

Do fiduciary deposits that are taken from a fiduciary bank for risk and reward of an underlying retail client qualify as retail deposits as defined in article 3 of the Delegated Regulation 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: 2018_4412
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Maturity of instruments subject to a cash flow schedule

Should an institution that has received the permission of the competent authority to use own LGDs for exposures to corporates, apply the formula in Article 162(2)(a) CRR, for both fixed interest rate and variable interest rate loans, where no change of the cash flow timing is applicable?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4410
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 21/05/2021

Securitisations reporting in C 09.04 for v 2.8

How should the securitisations under the new framework be reported in template C 09.04 in v 2.8?

  • 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: 2018_4408
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 07/06/2019

Fair value adjustments that arise as a result of applying fair value hedge accounting

Should fair value adjustments which arise as a result of applying fair value hedge accounting to mitigate interest rate risk be treated under the CRR credit risk framework or under a different risk framework? And if under a different risk framework, which risk framework should that be?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4406
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Subsequent instances of a recurring card payment transaction, other than the first, initial one, are transactions initiated by the payee only. This is also the case for card instalment transactions.

Are the subsequent instance of card payment recurring transactions (other than the first, initial one) and of instalment transactions (again, subsequent to the initial one) transactions initiated by the payee only?

  • 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: 2018_4404
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 01/03/2019

Secure corporate payment processes and protocols

Are USB drives (containing a certificate) used only by corporate clients compatible with RTS requirements?Can USB drives be considered as payment processes exempted from strong customer authentication ?

  • 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: 2018_4400
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 14/06/2019

Electronic chip transactions authenticated with a hand signature

As a Payment Service Provider (PSP) acquirer, how should we report the German chip + signature transactions in the “EBA fraud report under PSD2” given the fact this kind of transactions are non-Strong Customer Authentication (SCA) and do not fall under any allowed exemption?

  • 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)
  • ID: 2018_4399
  • Topic: Fraud reporting
  • Date of submission:
  • Published as final Q&A: 24/07/2020

IFRS 9 Transitional Arrangements - Business Combination

There is a business combination between banks which decided to apply the static and dynamic phase in the arrangements envisaged by Article 473a CRR.1) How should the static phase-in arrangements envisaged by Article 473a CRR apply on the consolidated basis?2) How should the dynamic phase-in arrangements envisaged by Article 473a CRR apply on the consolidated basis?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4391
  • Topic: Accounting and auditing
  • Date of submission:
  • Published as final Q&A: 09/08/2019

Calculation method for materiality ratio to be compared against the 10%/5% threshold for the purpose of application of Article 150(1)(c) for equity exposure class (Permanent Partial Use)

How should a credit institution - with the prior permission to apply the standardised approach permanent partial use (PPU) ex Article 150 CRR for equity exposures - calculate the  threshold as per Article 150(2) CRR?How is the materiality ratio computed? In particular:Should the numerator include only the exposures for which the application for PPU is being sought under Article 150(1)(c) CRR by excluding exposures for which PPU has already been granted pursuant other points of Article 150(1) and exposures not to be included in the calculation of RWA for equity exposure pursuant to Article 155(1) (i.e. Equity exposures risk weighted at 250% in accordance with Article 48(4) of Reg. EU 575/2013 and those deducted from CET1 in accordance with Part Two of Reg. EU 575/2013)?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: 2018_4390
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 21/05/2021

Calculation of net positions under Article 327 (1)

Does a short (long) position on an over-the-counter derivative on a bond/ equity (single name/index/basket) underlying (such as a total return swap (TRS), equity swap, asset swap, etc) net off against a long (short) position in its bond/equity underlying as long as the bond/equity (single name/index/basket) underlying of the derivative contract is the same as the bond/equity in which the long (short) position exists?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4386
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 04/06/2021

Exemption of secure corporate payment processes and protocols

Is the exemption of applying strong customer authentication, in respect of legal persons initiating electronic payment transactions through the use of dedicated payment processes or protocols that are only made available to payers who are not consumers applicable to both payment initiation and account information services? Or, is it solely applicable to payment initiation service?

  • 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: 2018_4383
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 26/02/2021

Treatment of CIUs in the standardised approach – Derivatives on CIUs

Title IV Chapter 2 Section 6 and Article 364 (2) b CRR refers to positions in CIUs in general. How shall own funds requirements be calculated for derivative positions with CIUs as underlyings under the standardised approach?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4381
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 04/12/2020