Question ID
2024_7263
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Own funds
Article
92
Paragraph
3
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
4
Type of submitter
Competent authority
Subject matter
4.0 Reporting Framework - COREP_OF C02 Template
Question

Could you kindly clarify if, in the context of map C02 , the comparison should be made with line 0036 instead of line 0010, considering that the output floor is calculated at the consolidated level and not at the contract level?

Background on the question

It was raised a question regarding map C02 , specifically in relation to column 0010 (TREA). Initially, it was understood that the sum of lines 0040, 0490, 0520, 0590, 0630, 0640, 0680, and 0690 should be equivalent to line 0036. However, following the recent publication of the EBA rules, it became clear that the amounts of these lines are compared with line 0010 (with output floor), rather than line 0036 (without output floor).

The reasoning behind the initial understanding was that comparing with line 0036 seemed more logical, as the output floor amount (line 0035) does not exist at the contract level (to be allocated per segment), but is instead calculated at the consolidated level, summing all risks. Using line 0010 for equivalence would require banks to establish allocation criteria for distributing the output floor amount across the sub-lines of Item 1.1.2, which could complicate the comparison.

Therefore, the question raised is whether the EBA rule might be inadvertently defined and if it should be compared to line 0036. This issue is critical as it significantly affects the implementation process.

Submission date
Final publishing date
Final answer

In template C 02.00 of Implementing Technical Standard (EU) No 2024/3117 (ITS on Reporting), in row 0010 the amount of TREA floored under Article 92(3) CRR shall be reported, while in row 0036 the sum of unfloored TREA (U-TREA) under Article 92(4) CRR shall be reported. The components of the TREA by risk type in the templates are unfloored risk-weighted exposure amounts. Therefore, row r0036 is the sum of rows r0040, r0490, r0520, r0590, r0630, r0640, r0680, and r0690.

The Data Point Model will be amended to clarify that the that the TREA by risk type in the templates are unfloored amounts.

Validation rule v0204_m which is not valid anymore with the changes that were made in the template with respect to the output floor, will be deactivated.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

Disclaimer

The Q&A refers 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.