- Question ID
-
2016_3067
- Legal act
- Directive 2013/36/EU (CRD)
- Topic
- Supervisory reporting - Supervisory Benchmarking
- Article
-
78
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
- Article/Paragraph
-
Annexes
- Type of submitter
-
Credit institution
- Subject matter
-
Funded and unfunded credit protection
- Question
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In cases when a contract has funded and unfunded credit protection, should any of them take precedence over the other? For example, a contract with an exposure of 100, a funded credit protection of 50 and unfunded of 70. If there is no preference, the sum of credit protections is more than exposure, but if funded credit protection takes precedence over unfunded, the result is the next: funded credit protection of 50, 35 unfunded (70% of 50) and 15 without credit protection. In the last case, the sum is the exposure. How should we treat these guarantees?
- Background on the question
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Treatment of contracts with funded and unfunded credit protection.
- 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