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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

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

Leverage ratio methodology - Art. 429(6) and (7) of Reg.(EU) No 575/2013 and Art. 429 a) of the Del. Reg. 2015/62 - art. 5 par. 3 of Comm. Deleg. Regulation (EU) 2015/63

To fill in some parts of the SRF 2018 Ex ante contributions Reporting forms in line with the Commission Delegated Regulation (EU) 2015/63, in particular the section related to “Derivative adjustment” (Art. 5 par 3), institutions must apply the “leverage ratio methodology” as defined in art. 429 of regulation 575 (CRR) to derivatives recognized in accordance with Article 295, where the current market value of the derivatives is negative. Are the variation margins paid in cash to the counterparty (a receivable asset) deductible from the net negative current market value (liability) of derivatives, based on the instructions contained in par. 3 of Article 429 a) of the delegated regulation 2015/62?

  • 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_3732
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Scope of Prudential consolidation

Which is the applicability of Article 22 CRR for successive subsidiaries of a Significant Institution (SI) in the SSM and rest of EU, when the subsidiary in a third country as referred in Article 22 CRR is held by the subsidiary in the SSM or rest of the EU that is the last in the chain of the successive subsidiaries of the SI?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4711
  • Topic: Other issues
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Clarification regarding the consideration in Article 42(6)

Can you please clarify Article 42(6) of Directive 2014/59/EU (BRRD); regarding that the consideration can have a nominal or negative value? Does effect of this mean that the asset management vehicle (AMV) must owe a debt to the institution under resolution?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3698
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Application of disclosure templates in EBA/GL/2018/10 for O-SIIs

Does the operation of paragraphs 17, 18 and 19 of EBA/GL/2018/10 mean that the 2018 NPL Guidelines apply to all O-SIIs, even if they are not credit institutions? If so, how is this reconciled with paragraph 6 of EBA/GL/2018/10, which states that the 2018 NPL Guidelines apply to credit institutions?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2016/11 - Guidelines on disclosure requirements under Part Eight of CRR
  • ID: 2019_4683
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Potential inconsistency between articles 68 and articles 69 through 71 in what concerns exemptions.

Considering contracts involving central counterparties and central banks are exempted from Member States' powers (i) "to suspend certain obligations" (69), (ii) "to restrict the enforcement of security interests" (70) and (iii) "to temporarily suspend termination rights" (71), are such organizations exempted from the "exclusion of certain contractual terms in early intervention and resolution" (68)? Example: if a crisis prevention measure is taken in relation to an entity with which a central counterparty or a central bank has a bilateral agreement, would the central counterparty or central bank be able to immediately exercise its contractual termination rights on the grounds of the referred intervention?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3421
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Annual contributions of institutions – which data should constitute the basis for the calculation of annual contributions to resolution financing arrangements in case of a significant change of the risk profile of an institution

In case of a significant change of the size and risk profile of an institution (in particular as a result of an M&A transaction), which data should constitute the basis for the calculation of the annual contributions to the resolution financing arrangements: (i) data derived from the most recently approved annual financial statements available prior to 31 December of the year preceding the contribution period (i.e. data which effectively precedes the contribution period by two years, e.g. for 2017, the resolution authority would rely on data as of 31 December 2015); or (ii) more recent data that adequately corresponds to the actual size and risk profile of the institution?

  • 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: 2017_3322
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Specialised Lending - Interpretation of contractual arrangements that give the lender a substantial degree of control

How shall Article 147 (8)(b) CRR be interpreted when identifying ‘contractual arrangements that give the lender a substantial degree of control over the assets and the income that they generate’ in the context of real estate financing?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4672
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022

Applicability of Directive 2001/24/EC by virtue of Article 117 para 1 subpara 4 of Directive 2014/59/EU

Whether Article 117 para 1 subpara 4 of Directive 2014/59/EU has amended Article 1 Directive 2001/24/EC with the effect that Directive 2001/24/EC is applicable to a Union branch (branch located in a Member State of a third-country institution) that was subject to resolution measures under Directive 2014/59/EU.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3123
  • Topic: Cross-border resolution
  • Date of submission:
  • Published as Rejected Q&A: 11/02/2022