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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.

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List of Q&A's

Non material losses

The definition of what is a non-material loss is not defined within Article 472 of Regulation (EU) No 575/2013 (CRR); is it possible to clarify what ‘material’ / 'non-material' is? Can you advise how- if applicable- such non-material losses are treated?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_448
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Market, Credit and Counterparty risks of Central Counterparty under CRR

For Central Counterparty (CCP) acting under Regulation (EU) n°648/2012 (EMIR) with a banking license, - Should the risks already covered by specific financial resources as referred to in Articles 41 to 44 of EMIR be subject to capital requirements under Regulation (EU) n°575/2013? - Should the risks towards a CCP arising from an interoperability arrangement which fulfilled the requirements referred to in Articles 52 and 53 of EMIR and already covered with such requirements be subject to capital requirements under Regulation (EU) n°575/2013?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2274
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Netting Methodologies

Does the EBA intend to issue guidance on the appropriate netting methodologies to be applied. For example, should netting take into account criteria such as currency, cash flow date, product etc. or should a more simplistic approach be used, e.g. adding all the inflows and outflows occurring within the 30 day timeframe to produce a net figure to be reported either as payable to receivable.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_381
  • Topic: Supervisory reporting
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Liechtenstein is menber of EEA and uses Swiss Francs (CHF).

Liechtenstein is a member of the EEA, but uses Swiss Francs as a domestic currency. Switzerland is not a member of the EEA. Are Swiss Francs to be regarded as a domestic currency like the Euro for the purpose of paragraph 5.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_323
  • Topic: Other issues
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Consistency regarding the specification of the transition period according to Articles 469(1), 470(2) and 478(2) CRR

How can the applicable percentages of Article 478(2) CRR be applied for the purposes of Article 469(1)(c) CRR until 31.12.2023 provided that the provisions of Article 469(1)(c) and Article 470(2) CRR are applicable only until 31.12.2017?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_261
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Applying the two different applicable percentages of Articles 478(1) and 478(2) CRR to the amount exceeding the thresholds of Article 470(2) CRR

How should the two different applicable percentages of Articles 478(1) and 478(2) CRR be applied to the total amount required to be deducted according to Article 36(1)(c) and (i) CRR after applying Article. 470 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_260
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Can the activity consisting in granting credits on own account without collecting deposits or other repayable funds from the public be subject to the requirements of the CRD IV regarding the freedom to provide services and freedom of establishment?

According to Article 4.1 (1) of the CRR, credit institution means an undertaking the business of which is to take deposits or other repayable funds from the public and to grant credits for its own account. The regulations of the CRR and CRDIV are applicable only to the institutions that fulfill both criteria, i.e. the business of which consist of both activities – taking deposits or other repayable funds from the public and granting credits for own account. Only such types of institutions are obliged to be subject to prudential supervision and only to such types of institutions the requirements of authorization and passporting in case of starting cross-border activity are applicable. In some jurisdictions, however, national legislation requires to obtain authorization and to be under prudential supervision from entities which do not accept deposits or other repayable funds but provide some kind of financial activity, in particular, grant different types of credits. This is for example a case of factoring or leasing firms. In these jurisdictions competent authorities require such firms to use passport notification procedure from the CRD IV to notify the intention to start cross-border activity in other Member State. Moreover, these authorities require relevant firms (i.e. leasing or factoring firms) from other Member State to notify the intention to start cross-border activity in jurisdiction of these authorities, using the procedure from the CRD IV. Notwithstanding of the lack of the EU legal basis for such requirements, it must be also noticed that in jurisdictions where such firms are not subject to authorization and prudential supervision, competent authorities have no mandate either to send or accept any notifications regarding the cross-border activity of such firms.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2230
  • Topic: Other topics
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Applicable provisions for determining deferred tax assets that rely on future profitability that existed before 1.1.2014

Are the provisions of Article 26(2) CRR regarding independently verified financial statements and permission of competent authorities applicable for determining deferred tax asset that rely on future profitability that existed before 1.1.2014?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_259
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Impact of the significant risk transfer on the own funds requirement against specific risk in case of synthetic securitisations in the trading book

May an originator institution of a synthetic securitisation where the securitised exposures are held in the institution’s trading book and the conditions for significant risk transfer in Article 244 are met exclude the securitised exposures and instead only include the securitisation positions resulting from the credit protection obtained in the calculation of its own funds requirement against specific risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_68
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

The mortgage lending value of the German property

The part of an exposure treated as fully secured by a German property shall be the lower amount of the market value or the mortgage lending value of the property. Does it mean that the mortgage lending value of the German property must be determined so that the property can be treated as collateral? How shall we treat the German property, in which only the market value exists, but not the mortgage lending value?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1023
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Other Inflows

Can the proceeds from the debt instruments issue completed by the SPV of the bank qualify for reporting as Other inflows (Annex XII, C 53.00, r 980, EBA ITS) 30 days in advance of the issue date, if the Deposit Agreement of transferring the deposit to the ownership of the bank on the issue date is signed earlier?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2014_1051
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Scope of application of FINREP

Pursuant to article 99.2 CRR, institutions subject to Article 4 of Regulation (EC) No 1606/2002 and institutions other than those referred to in Article 4 of that regulation that prepare their consolidated accounts in conformity with the IFRS/IAS shall also report financial information. Shall an institution publishing its consolidated accounts in IFRS submit the reporting FINREP at its level when it is controlled by a parent financial holding company? It is worth noting that this institution applies the own funds requirements on the basis of the consolidated situation of the financial holding company in accordance with the article 11.2 of the CRR, and not on the basis of its own consolidated accounts. In addition this institution is not subject to own fund requirements at its level either on a sub-consolidated or on an individual basis.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2015_2201
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Transitional provisions on the introduction of IAS 19 revised

Which are the reporting dates that institutions should refer in the calculation of the applicable amount in accordance with 473 (2) of Regulation (EU) No 575/2013 (CRR)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1197
  • Topic: Accounting and auditing
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Inclusion of expected loss for equity exposures in calculation of Expected loss amount reducing CET1

Shall the expected loss amount for equity exposures under the IRB approach be offset against the specific and general credit risk adjustments of all risk positions?If not, how shall they be treated? Does it has to be deducted from CET 1 in either case, also if there is a surplus increasing T2 according to Article 62 (d)?Does this also mean that EL for equity exposures shall be reported in CA4 row 140 respective 155 or not?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
  • ID: 2014_1217
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Conditons to be fulfilled when netting positions in market risk of third countries

According to Article 325 (3) letter b CRR undertakings located in third countries have to comply, on an individual basis, with own funds requirements "equivalent to those laid down in this Regulation". To assess whether this condition is fulfilled by the third country institution, is it sufficient for the institution to look only on Article 92 CRR, or has the assessment to be based on e.g. Article 25, 51 et seq., 63 et seq, 102 and 325 CRR or even on the CRR as a whole? In particular, is there a relation to the Commission´s delegated act on third country equivalence that will be issued by the end of 2014? Once the delegated act on third country equivalence is issued, will supervisors and institutions be able to treat exposures to the third countries mentioned therein as equivalent without effecting further analyses under Article 325 (3) letter b CRR? With regard to Article 325 (3) letter c CRR: what proof of evidence is deemed necessary to assess the fulfillment of this condition? Is this Article fulfilled if a lawyer located in the respective third country states that there is no regulation in place which might significantly affect the transfer of funds within the group? Does this opinion have to be given e.g. by a lawyer resident in the home country of the third country institution or the country of the institution wanting to apply Article 325 CRR or the third country regulator? As we are of the opinion that letter c is hard to be fulfilled (or rather evidence is hard to provide) we would like to understand the rationale behind this condition.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1323
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Treatment of subordinated loans in respect of Art 133 (3) CRR

Could you please confirm that subordinated loans according to Art 62.a CRR, which are acknowledged as Tier 2 are not regarded as equity exposures according to Art. 133.3 CRR.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1384
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Balance Sheet Netting as a CRM technique

Is Balance Sheet Netting according to Article 195 limited to Cash Balances in the same currency?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1413
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Groups including investment firm(s) referred to in Article 95(1) and investment firm(s) referred to in Article 96(1) and not including credit institutions.

What method of calculating the own funds requirement should be used when a group consists of both 95(1) and 96(1) investments firm and no credit institutions?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1414
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Conditions to benefit from the 4% risk weight in Article 305(3) and treatment in Article 306

Does the application of the 4% risk weight referred to in Article 305(3) presuppose that the omnibus model meets all requirements set out in Article 305(2) lit (a) to (d) CRR and article 305(3) CRR together? Or, is Article 305(3) CRR meant to replace the requirement in article 305(2)(a), which presupposes an individual style segregation model?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1485
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022