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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.

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List of Q&A's

Interplay between subordination and calibration for MREL

Shall subordination and calibration requirements set out in Art. 45b and 45c BRRD be met at all times, independently from each other?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4863
  • Topic: MREL
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Reference to provisions governing the access to extraordinary financing in MREL calibration

Is the reference to the provisions governing the access to extraordinary financing (37(10), 44(5) and 44(8) BRRD) a mandatory component of MREL calibration for resolution and non-resolution entities?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4862
  • Topic: MREL
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Scoping and content for template 6 of the EBA GL Disclosure of NPE/FBE

Should the gross carrying amount that should be reported in column “a” of template 6 of the EBA GL Disclosure of NPE/FBE be the gross carrying amount that is reported in Finrep template F20.07, or should it be the gross carrying amount from Finrep template 18? i.e. should it also include loans advances held for trading to non-financial corporations or not?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/10 - Guidelines on disclosure of non-performing and forborne exposures
  • ID: 2019_4768
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Interaction between total MREL and subordinated “eight percent TLOF” requirement

Article 45b(4) requires, for GSIIs and top tier banks, that “a part of” the total MREL requirement “equal to” eight percent of total liabilities, including own funds (TLOF), subject to possible upwards or downwards adjustments, is to be met with own funds and subordinated instruments (hereafter referred as “the subordination requirement”). How does this subordination requirement and its calibration interact with the methodology set out in Article 45c for determining the total MREL requirement? If the requirement resulting from the application of the methodology set out in Article 45c happens to be lower than 8% TLOF, subject to possible upwards or downwards adjustments, is that subordination requirement capped by the total MREL requirement?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4906
  • Topic: MREL
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Clarification about the definition of default for retail exposures

It is unclear how to determine what should be considered as retail exposures for the purpose of the definition of default for retail exposures.What kind of exposures should be considered to determine default under Article 178 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/07 - Guidelines on the application of the definition of default under Article 178 CRR
  • ID: 2019_4757
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of intragroup liabilities when one of the institutions is established in a country being a member of EEA and EFTA (i.e. non-EU Member State but EEA Member State), which has implemented Directive 2014/59/UE, but entry into force of the Decision of the EEA Joint Committee (‘JCD’) No 21/2018 of 9 February 2018 is pending and the draft JCD incorporating Delegated Regulation (EU) 2015/63 is under consideration by the EU (EEAS) and the EFTA States (Iceland, Liechtenstein and Norway)

Should, according to Article 5(1)(a) of the Delegated Regulation (EU) 2015/63, intragroup liabilities be deducted from the contribution base when one side of the transaction is an institution established in a country being a member of the EEA and EFTA (e.g. Norway), but (according to information available on www.efta.int, retrieved on 1 August 2019) entry into force of the Joint Committee Decision (JCD) No 21/2018 of 9 February 2018 incorporating Directive 2014/59 and Joint Committee Decision (JCD) No 79/2019 of 29 March 2019 incorporating Regulation (EU) No 575/2013 and Directive 2013/36/EU is pending and the draft Joint Committee Decision incorporating Delegated Regulation (EU) 2015/63 is under consideration by the EU (EEAS) and the EFTA States?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2019_4857
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Primary Key combination provided in Annex II guidelines seems incorrect or incomplete for Template Z. 10.02

One CIS (c0010) can be supporting one service (c0040) and two or more critical functions (c0060) assuming entity code (0030) and country (0050) is same for . So in this case there will be more than one row for combination of c0010,c0030,c0040 & c0050 which is mentioned as primary key in Annex II. This will thrown up an error while formation of templates in DPM. Annotated table layout doesn't have c0050 and c0060 as part of primary key. So, Annex II guidelines and Annotated tables are not in sync when we refer primary keys. Even though for a minute, I assume c0040 (critical service identifier) in template 10.02 as unique, then it doesn't link back to Template Z 08.00 c0005 directly as c0005 is not a part of primary key combination in template 8.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/1624 - ITS on the provision of information for resolution plans
  • ID: 2019_4729
  • Topic: BRRD Reporting
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Recognition criteria for off-balance sheet items for exposure value calculation

If based on the applicable accounting framework (IFRS-EU) it is concluded that there is no contingent liability that should be disclosed for accounting purposes, is it then still possible that an off-balance sheet item exists, which should be recognised for exposure value calculation per Articles 111 CRR or 166 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4751
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Place in the sequence of write down for an istrument that does not qualify as part of own funds

Where does an instrument that qualified as original own funds under the national transposition measure for point (ca) of Article 57 of Directive 2006/48/EC but does not qualify as Additional Tier 1 according to Article 489(4) fit in the sequence of write down and conversion from Article 48 of Directive 2014/59/EU? Will 48(1)(b), 48(1)(c) or 48(1)(d) be applicable to such an instrument?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4685
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Effect of bail-in tool: clarification on Article 53(3)

How should the phrase “and any obligations or claims arising in relation to it that are not accrued at the time when the power is exercised” in Article 53(3) be interpreted?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4677
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Method to calculate RWAs in relation to a securitisation position where the underlying pool comprises specialized lending exposures

Which method according to Article 254 CRR is to be used to calculate RWAs in relation to a securitisation position which is backed by an IRB pool composed by specialized lending exposures?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4730
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Resolution plans for subsidiaries where no resolution college has been established yet

Is the national resolution authority empowered to draft an individual resolution plan, referred to in Article 10 BRRD, for an institution which is part of a (third country) group subject to consolidated supervision, where the European group-level resolution authority (GLRA) has not established the European resolution college?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4642
  • Topic: Resolution plans
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Partial Waiver of Article 6(1) CRR according to Article 7(3) CRR

Can a bank apply for a partial waiver of Article 6(1)  CRR as described in Article 7(3)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4720
  • Topic: Large exposures
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Definition of "external customers" mentioned in iii) of b) of Paragraph 1 of Article 96

Could it be possible to give a definition of "external customers" mentioned in iii) of b) of Paragraph 1 of Article 96? Would an entity from the same banking group (in the case of an investment firm belonging to a banking group) be considered as an external customer?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2019_4613
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment for the intragroup derivative liabilities in the methodology to calculate ex-ante annual contributions to the Single Resolution Fund

Are there any provisions preventing to apply the same treatment for the intragroup derivative liabilities and for the other derivative liabilities as mentioned in Paragraph 4 of Article 5 of Delegated regulation (EU) 2015/63 ?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2019_4577
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Moment of deduction for cooperative shares

In the case of a cooperative institution, should deductions from own funds with regard to a permission to reduce CET1 capital in accordance with Article 77(a) of Regulation (EU) No 575/2013 (CRR) and Article 32 of the RTS on Own Funds be made right after the permission from the competent authority (CA) is granted (as laid down in Article 28 (2) of the RTW on Own Funds ) or could it be later for instance at the time when the institution receives the notification of the intention to redeem from the shareholder?

  • 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
  • ID: 2019_4719
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Unique row identifier for template Z 08.00 - Critical services (SERV)

According to Annex II to ITS on Reporting for Resolution Plans, the combination of values regarding Service type, Service recipient, Service provider, Critical function and Country shall define a unique row identifier.Given that the combination of values defined as row identifier in template Z 08.00 of Annex II to the ITS on Reporting for Resolution Plans may actually be common to different contracts having different contractual provisions, how, if at all, should institutions report these contracts? (i.e. do institutions have to report one row for each contract, identified by field 0005 Identifier, which would be part of the single row identifier?)

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on the provision of information for the purpose of resolution plans
  • ID: 2019_4457
  • Topic: BRRD Reporting
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Transactions to consider in the share of interbank loans and deposits in the European Union

Could you confirm the share of interbank loans and deposits in the European Union aims at reflecting the share of interbank transactions of an institution with other institutions established in the European Union?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/63 - DR on ex ante contributions to resolution financing arrangements
  • ID: 2018_4344
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Contextual limits to the ancillary power in Article 64.1.f) BRRD

Should the power in Article 64.1.f) BRRD be interpreted as limited by the context of the specific resolution tool used in the particular case?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3802
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Prudential consolidation: definition of "undertaking" and "dominant influence"

For the purpose of the application of CRR Article 18(1) and CRR Article 18(8) could you clarify whether:- the term “undertaking” means necessarily “entity” having a legal personality;- the term “dominant influence” has to be understood in a broader sense than within the meaning of the Article 1(1) of the Directive 83/349/EEC;

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4716
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022