- Question ID
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2024_7086
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Own funds
- Article
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92
- Paragraph
-
1
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
-
- Type of submitter
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Credit institution
- Subject matter
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Specification and operationalisation of the phrase "at all times"
- Question
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How is the wording in Article 92 (1) CRR to be understood with regard to compliance with own funds requirements “at all times” in terms of verifiability?
- Background on the question
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Article 92 (1) CRR states that institutions shall satisfy specific own funds requirements at all times. The wording "at all times" is clear in terms of content. But it cannot be operationalised in practice. Institutions have regular external reporting obligations. In addition, there are internal processes for regularly management reports about the development of capital ratios and other key risk parameters. There are many processes that are interlinked in the reporting of own funds requirements. The preparation of regulatory reporting and thus the concrete proof of compliance with capital adequacy requirements comprises numerous work steps and dependencies. The data must be collected from various banking systems and then processed in one or more calculation tools. This is followed by consolidation of data and final reporting out of the reporting software.
In practice complexity and technical dependencies make it very difficult to provide actual and historicised proof of compliance with capital adequacy requirements in the literal sense “at all times” and it seem not always necessary due to low volatility.
- Submission date
- Rejected publishing date
-
- Rationale for rejection
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This question has been rejected because it is considered that EBA guidance or clarification is not needed with regard to the issue that it raises. For example, this can be the case where it is considered that the existing regulatory framework is sufficiently clear and unambiguous, or where different practices may be possible but it is not currently necessary to harmonise these further through the Q&A process.
The Single Rule Book Q&A tool has been established to provide explanations and non-binding interpretations on questions relating to the practical application or implementation of the provisions of legislative acts referred to in Article 1(2) of the EBA’s founding Regulation, as well as associated delegated and implementing acts, and guidelines and recommendations, adopted under these legislative acts.
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- Status
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Rejected question