Question ID
2025_7314
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Own funds
Article
Article 36.1.k.vi
Paragraph
1
Subparagraph
k.vi
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) 2024/3117 - ITS on supervisory reporting of institutions
Article/Paragraph
IT solution - Annex II
Type of submitter
Credit institution
Subject matter
C01.00 - CIU deduction from own funds
Question

Where in the sheet C01.00 of the COREP, can we deduct CIUs under fallback approach (subject to 1250% RWA) from CET1 (as permitted by article 36.1.k.vi) since no dedicated caption is currently foreseen?

Background on the question

In the framework of the new implementation of CRR3, article 36.1.k.vi now authorizes institutions using the fallback approach and therefore assigning a 1250% risk weight to exposures towards investments in collective investment undertakings (CIUs), to deduct the exposure amount of these investments from their CET1 capital instead of risk weighting it.

In the latest version of the COREP templates published by the EBA on 14/11/2024 and published in the EU journal on 27/12/2024 (EU 2024/3117), we could not find a new caption in the sheet CA1 - C01.00 - OWN FUNDS for this new potential deduction.

On the other hand, in the same template, the EBA has not yet deleted the reporting row "1.1.1.21 (-) Equity exposures under an internal models approach which can alternatively be subject to a 1250% risk weight" referring to CRR II articles 36.1.k.v and 155.4 which have been deleted in CRR III and is hence obsolete. We also found the caption "1.1.1.28 CET1 capital elements or deductions - other".

Submission date
Final publishing date
Final answer

A row is missing in template C 01.00 to reflect Article 36 (1)(k)(vi) CRR. The row will be added on the next COREP own funds release In the meantime, the amount should be reported in row 0529 (other deductions) of template C 01.00.

Besides, row r0472 regarding the deduction under the (obsolete) Article 36(1)(k)(v) CRR will be deleted.

Status
Final Q&A

Disclaimer

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