- Question ID
-
2015_2266
- Legal act
- Directive 2014/59/EU (BRRD)
- Topic
- MREL
- Article
-
45
- Paragraph
-
1
- Subparagraph
-
2
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
0
- Type of submitter
-
Competent authority
- Subject matter
-
Treatment of derivative liabilities in the denominator of MREL
- Question
-
What does Article 45 (1) of Directive 2014/59/EU (BRRD) mean by including derivative liabilities in the total liabilities on the basis that full recognition is given to counterparty netting rights?
- Background on the question
-
Directive 2014/59/EU (BRRD) in Article 45 (1) stipulates that for the purpose of calculating MREL derivative liabilities shall be included in the total liabilities on the basis that full recognition is given to counterparty netting rights. In certain Member States (including Hungary) whose credit institutions are not obliged to report according to FINREP and use national accounting frameworks most of the derivatives (swaps, futures) are held off-balance sheet, whose inclusion is not clear from the level 1 text. If off-balance sheet derivatives shall be included beside on-balance sheet items, their valuation is another open question. Furthermore, the level 1 text is not clear whether prudential or accounting netting shall be used for the calculation of MREL.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
For further information please refer to the press release and the updated Q&A page.
- Status
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Rejected question