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Q&As refer 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.

Please note that the Q&As related to the supervisory benchmarking exercises have been moved to the dedicated handbook page. You can submit Q&As on this topic here.

List of Q&A's

Misalignment between table 2 Annex XXXIX and Annex XL

The Pillar 3 DA foresees the publication of three qualitative sections which require the application, in particular, of Regulation (EU) no. 2022/2453. From the examination of this A discrepancy has been observed between the delegated regulation and its annexes I (which includes the text of the original annex XXXIX) and II (which contains the text of the original annex XL) regarding what is reported  in table 2 of the Annex XXXIX and what is described in the instructions for table 2 of Annex XL about letter d) relating to Governance on social risk. In particular:- In Annex XXXIX table 2 - Qualitative information on social risk in line d) for the Governance aspects, it is specified what information must be published: the "Responsibilities of the management body for setting the risk framework, supervising and managing the implementation of the objectives, strategy and policies in the context of social risk management covering counterparties' approaches to: (i) Activities towards the community and society, (ii) Employee relationships and labor standards, (iii) Customer protection and product responsibility, (iv) Human rights". The focus of the information appears to be on the approaches that the Bank's counterparties (customers and suppliers) take towards the community and society, its relationships with employees and compliance with labor standards, customer protection and product liability and human rights, posing an indirect risk for the financial institution.- In Annex XL the instructions for compiling the tables and models referred to in Annex XXXIX provide that "in accordance with Article 449a of Regulation (EU) No 575/2013, in conjunction with Article 435(1), point ( b), and Article 435(2), points (a), (b) and (c), of that Regulation, institutions shall describe how their management body is involved in the supervision and management of social risks. That information shall cover the rationale of the approach taken by the management body and take into account a number of social factors. Those factors include the institution’s engagement towards the community and society, its relationships with employees and compliance with labor standards, customer protection and product responsibility, and human rights.” In this case there would be a direct risk for the Bank. The art. 18 bis point 1 a) of Regulation (EU) 2022/2453 also establishes that, in relation to information on environmental, social and governance risks, entities (intended as financial institutions) publish "qualitative information on environmental, social and governance risks using tables 1, 2 and 3 set out in Annex XXXIX to this Regulation and following the instructions set out in Annex XL to this Regulation”.Should table 2 Annex XXXIX be filled reporting direct or indirect risks?   

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

ESG P3 - Template 2 and 5 - Sectors to be included for loans collateralized by RRE/CRE

In DPM 3.3 table layout for ESG template 2 (D 02.00a and D02.00b) the information on Energy efficiency associated to real estate collateral is limited to loans&Advances belonging to counterparty sector "Non-financial corporations", which would mean that Loans&Advances to households, or any other sector, collateralized by immovable property would not be included in this template.However, In DPM 3.3 table layout for ESG template for ESG template 5 (D 05.00a), the information related to real estate collateral is not limited to counterparty sector "Non-financial corporations", which would meand that all sectors can be included, generating a difference between what would be published in the two templates.Is this correct?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

What to report in D 05.00.b - Banking book - Indicators of potential climate change physical risk?

Question 1: what are the data/NACE code in scope to be reported for template D 05.00.b - Banking book - Indicators of potential climate change physical risk? Question 2: what is the level of NACE code to disclose in template D 05.00.b - Banking book - Indicators of potential climate change physical risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Scope of Template 2 restricted to NFCs?

According to the Annex II (Instructions for disclosure of ESG risks) with the regard to Template 2: Banking book – Indicators of potential climate change transition risk: Loans collateralised by immovable property – Energy efficiency of the collateral: The Template should show the gross carrying amount, as referred to in Part 1 of Annex V to Implementing Regulation (EU) 2021/451, of loans collateralised with commercial and residential immovable property and of repossessed real estate collaterals. We do not see an explicit restriction to non-financial corporates as in Template 5, for example (Definition in Template 5: … Institutions shall disclose the gross carrying amount as defined in Part 1 of Annex V to Implementing Regulation (EU) 2021/451 of those exposures towards non-financial corporates (including loans and advances, debt securities and equity instruments), classified under the accounting portfolios in the banking book in accordance with that Implementing Regulation, excluding financial assets held for trading and held for sale assets.…) The “Annotated Table Layout 330-P1-ESG 3.3.xlsx” of EBA Reporting framework 3.3 in templates D 02.00.a and D 02.00.b restricts the scope of Template 2 to non-financial corporations with the Counterparty sector field. In our opinion, the restriction is not clearly given by Regulation (EU) 2022/2453 so we ask for clarification of the fact. Is the assumption correct that in case the restriction to non-financial corporations is given in Template 2, the gross carrying amount of Template 2 column a row 0010 Total EU area and Total non-EU area 0060 is corresponding to Template 5 column b row 0100 Loans collateralised by residential immovable property, 0110 Loans collateralised by commercial immovable property and 0120 Repossessed collaterals?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Validations rules for the GAR - row 290 Housing financing in template 7

Validation rules v12728_m and v12727_m are not taking into account the row 290 Housing financing. Ultimately it means this row 290 is excluded from the Total GAR assets in row 320.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2022/2453 - ITS on ESG disclosures

Disclosure requirements for non-complex and non-listed institutions

We would appreciate clarification regarding disclosure requirements by institutions detailed in Part 8 of CRR 575/2013, more precisely Article 433b, paragraphs (1) and (2).Should non-listed small and non-complex institutions disclose paragraphs 1, points (a) and (b) on an annual basis or what should they consider to be correct, key metrics from article 447 also on an annual basis?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/637 - ITS with regard to disclosures of information referred to in Titles II and III of Part Eight CRR

recognision of own funds

Can the Common Equity Tier 1 items, namely „capital instruments, provided that the conditions laid down in Article 28 or, where applicable, Article 29 are met“(CRR Art 26 (1) (a)) and „other reserves“ (CRR Art 26 (1) (e)) be recognised as CET1 capital if there are features preventing its funds from use?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Disclosure of exposures arising from Article 390 (5)

How the exposures as per Article 390 (5) be reported in Corep templates C28 & C29 - direct vs indirect?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

v09816_m, v09818_m, v09820_m, v09822_m, v09824_m - Hedging sets

Reporting instructions not clear on how to correctly interpret requirements for calculating and reporting CMV for positions with "Exclusive mapping" to one risk category. In template C 34.03, the columns current market value (CMV), positive (c0050) and Current market value (CMV), negative (c0060) are to be presented on hedging set level and shall be determined by netting positive and negative market values of the transactions within one hedging set gross of any collateral held or posted. In order to comply with requirements, the CMVs are to be presented on hedging set level. While this is possible for calculating each risk category (e.g. Equity risk (r0230, c0050, c0060), there is a potential issue with reporting part of the hedging sets which are mapped exclusively to one risk category (e.g. for interest rate risk: r0060, c0050, c0060). The hedging sets can contain positions which are mapped exclusively to one risk category and positions which are mapped to more than one risk category. How to approach a possible situation where in an extreme case e.g. CMV on the hedging set can be positive, but the sum of all transaction-level MV  which are exclusively mapped to interest rate are negative, therefore the positive CMV would actually be negative? Is it possible to split the hedging sets into sub hedging sets like it should be already done for multi and single name according to EBA Q&A 2022_6363? There would be sub sets with positions which are exclusively mapped to only one risk category and positions which are mapped to more than one risk category. The CMV would then be determined on those hedging sub-sets? In this case, the netting of positive and negative market values will happen only within the hedging sub-sets.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions

Template C.14 - Validation rule v11873_m - {C 14.00, c0230} + {C 14.00, c0240} + {C 14.00, c0250} <= {C 14.00, c0140}

Applicability of validation rule v11873_m introduced with DPM 3.2 in force starting from June 2023, which at the moment does not allow the reporting of values under column c140 – TOTAL AMOUNT OF SECURITISED EXPOSURES lower than the sum of columns c230 (SENIOR), c240 (MEZZANINE) and c250 (JUNIOR) positions of Template C.14.00.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions

Template C.14 - Validation rules v11662_m - if (({C 14.00, c0110} != {[eba_RS:x1], [eba_RS:x6]}) and ({C 14.00, c0230} > 0)) then ({C 14.00, c0231} != empty and {C 14.00, c0231} != 1) and v11663_m if (({C 14.00, c0110} != {[eba_RS:x1], [eba_RS:x6]}) and ({C 14.00, c0250} > 0)) then ({C 14.00, c0251} != empty and {C 14.00, c0251} != 0)

Range of applicability of validation rules v11662_m and v11663_m introduced with DPM 3.2 in force starting from June 2023.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions

Definition of ‘turnover’ for the purposes of Country-by-Country reporting

What should be considered as ‘turnover’ for the purposes of country-by-country reporting in Article 89(1) of Directive 2013/36/EU (CRD) in light of amended Accounting directive?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Treatment of inflows from credit facilities in LCR

Is a credit institution entitled to consider inflows from a credit facility in LCR, if the credit facility contractually expires within 30 calendar days and the client has no contractual option to prolong it beyond its current expiry date?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement

Applying adjustments and deductions in Article 36 in full

In Article 48(2)(a) of Regulation (EU) No 575/2013 (CRR) it states: 'the residual amount of Common Equity Tier 1 items after applying the adjustments and deductions in Articles 32 to 36 in full and without applying the threshold exemptions specified in this Article;' Question: When applying the adjustments and deductions in Articles 32 to 36 in full should be deducted the value of deferred tax assets and significant investments?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Clarification on How the Guidelines Impact Vendors Whose Products are Not Deemed as Outsourcing Arrangements

In light of the EBA's clarification(pages 88 and 89) we understand that the purchase of standardized/licensed software or services, such as those supporting IT platforms (e.g., web hosting, DDoS systems, data backup processes), does not fall within the scope of outsourcing (as per the EBA's response to related queries). Paragraphs 24 and 25 on page 11, however, require financial institutions to assess risks from third-party arrangements, even if not classified as outsourcing. As a vendor providing non-outsourcing arrangements, we seek clarification on whether the EBA requires financial institutions to mandate compliance with the EBA outsourcing guidelines in our case, considering our offerings are explicitly excluded from the outsourcing definition. Can financial institutions require compliance with these guidelines, citing them as a compulsory regulatory requirement, even when our offerings do not qualify as outsourcing arrangements? 

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/02 - Guidelines on outsourcing arrangements

clarification which EBA Q&A to apply: EBA Q&A 2017_3277 or EBA Q&A 2023_6791

clarification which EBA Q&amp;A to apply: EBA Q&amp;A 2017_3277 or EBA Q&amp;A 2023_6791

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 241/2014 - RTS for Own Funds requirements for institutions

Assignment of a 0% risk weight to equity exposures to subsidiaries that are not institutions

Can a risk weight of 0% be assigned pursuant to Article 113(6) CRR to an equity exposure to a subsidiary which is not an institution, provided that all conditions in Article 113(6)(a) to (e) are met? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable

Consideration of CDS on itraxx main and itraxx crossover as eligible hedges in SA-CVA

It is possible to consider the CDS on itraxx main and itraxx crossover as eligible hedges in SA-CVA without including the perimeter exceptions specified in aticle 382.4?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions

Unweighted delta sensitivities in template C91

In the C90 template on market risks - Alternative Standardised Approach Summary - the first two columns must show the unweighted sensitivities broken down by positive and negative aggregated by risk factor.Should positive and negative sensitivities be aggregated from net risk factor sensitivities or risk factor sensitivities for individual positions? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions

Treatment of RNIME (Risks not in the model engine) in COREP reporting

What COREP template should be used for the reporting of RNIME? Our NCA has advised us to report RNIME in COREP C02.00 (Own Funds Requirements) row 760, according to Article 3 CRR and the ECB Guidance on Internal Models (chapter Market Risk, page 176, footnote 90), instead of the Market Risk template C 24 MKR IM in accordance with Article 92 (3)(c) CRR.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/451 – ITS on supervisory reporting of institutions