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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

EBA Guidelines - critical outsourcing - references to BRRD

Pursuant to paragraph 75(o) of the EBA Guidelines on outsourcing arrangements, the outsourcing agreement for critical or important functions should set out a clear reference to Articles 68 and 71 of Directive 2014/59/EU (BRRD). On the other hand, the BRRD, as amended through the Directive (EU) 2019/879 (BRRD 2), imposes an obligation to include such articles only in financial contracts (these will essentially include derivative contracts, repurchase agreements etc.), governed by third country law. Clarification is sought as to whether contracts for critical outsourcing arrangements should incorporate references to Articles 68 and 71 of BRRD, as amended, irrespective of such contracts not being financial contracts pursuant to BRRD. 

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6240
  • Topic: Internal governance
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

CRM for off balance sheet commitments

1) Can the part of the off-balance exposure that is covered by the (to be vested) mortgage inscription be taken into account as 'fully secured and completely secured by mortgage' under Article 125(1) CRR?    2) Can the part of the off-balance exposure that is covered by the (to be vested) mortgage guarantee be taken into account as credit risk mitigation under Article 203 CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6234
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Original Maturity for off balance sheet items

1) Are loan commitments that constitute (accepted or unaccepted) loan offers to clients to be considered off balance sheet items, which fall under the definition of 'undrawn credit facilities' of Annex 1?    2) The 'original maturity' that is used for the allocation of 'undrawn credit facilities' to either medium risk, or medium/low risk is determined on the basis of the maturity of the commitment or on the basis of the underlying loan of the offer?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6233
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Exemption of promotional loans from the leverage ratio requirement

Is the eligibility to the exemption for passing-through promotional loans to be assessed based on the non-competitive and the not-for-profit nature of the promotional loans granted (as defined under Article 429a(3) CRR) and the recipient of the promotional loan?   In other words, is the leverage ratio exemption under Article 429a(1)(e) CRR applicable to promotional loans irrespective of how the latter are match-funded? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6231
  • Topic: Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Application of the conditions set out at Article 104b(2) CRR which apply to trading desks when there is no approval for or operation of alternative internal models.

Can the conditions for trading desks arising pursuant to Article 104b(2) apply where the obligation to establish trading desks pursuant to Article 104b(1) does not arise?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6228
  • Topic: Other issues
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Custom software development and support outsourcing clarification

Company for development and maintenance of banking software has identified the following unclarities related to the EBA Guidelines on outsourcing arrangements (EBA/GL/2019/02) that were published by European Banking Authority (EBA) and for which we ask for clarification/interpretation: Is custom software development, which is based on specifications and orders from a bank, and which covers thematic area or function that the bank defined as a critical function, considered as outsourcing (in terms of the referenced guidelines) when the act of development is performed on an occasional (not recurrent and not ongoing) basis? Is regular custom software maintenance and support of software mentioned in the previous bullet point, which covers thematic area or function that the bank defined as a critical function, considered as outsourcing (in terms of the referenced guidelines) if the company providing the software maintenance and support service doesn’t have access to bank’s production environment or data from the production environment? IT department of the bank exclusively maintains their production environment, and only the bank has access to production environment data (first level support). The company offers second level support to the IT department, which consists of consultations for resolving more demanding problems, which are simulated in the test environment (without any access to the production environment). In case any of the services mentioned in the previous bullet points are considered as outsourcing (in terms of the referenced guidelines), must the contract between the company and the bank implement all guidelines or only those that are relevant for the scope of cooperation between the company and the bank? Please confirm that there is no need for the contract to cover guidelines related to cloud services and outsourcing data processing services if the company does not offer cloud services nor processes any data of the bank.  

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/02 - Guidelines on outsourcing arrangements
  • ID: 2021_6191
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Dutch Residential Real Estate Mortgages - covered by NHG - Nationale Hypotheek Garantie - National Mortgage Guarantee - Calculation of RWA within and outside the Netherlands

If a foreign bank, with a Dutch branch, is exempt from applying the rules from the Dutch NCA for the branch, would this not lead unfair competitive advantage?  

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6105
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Elaboration of the template EU LIQ2 using supervisory data EBA/ITS/2020/04 - Annex XIII - Template EU LIQ2: Net Stable Funding Ratio

There seems to be inconsistencies at the level of the mapping tool for the elaboration of the template EU LIQ2 using superviosry data: specifically, while in CoRep templates C80 and C81 the assets/liabilities with no maturity are included in the "less than 6 months maturity" band, in the disclosure template these items are requested separately. This is inconsistent with the indications provided by the mapping tool: can the mapping tool be ignored?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_5782
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Collateralized loans below 35% Risk Weight

Could you please clarify whether in case of collateralized loans (collateralized credit claims) the applicable risk weight (based on the CRR standardised approach) used for classifying certain assets in NSFR refers to the risk weight after credit risk mitigation (i.e. considering the collateral) of the loan?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_5753
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Risk weight for new asset class of non-preferred senior debt

What risk weight should be applied to non-preferred senior (NPS) debt, under the standardised approach for credit risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2020_5312
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

To overrule the validation error V09341_m in SBP credit risk report

Can you agree to overrule the validation error V09341_m in SBP credit risk reporting for context date of 202012?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/2070 - ITS on Supervisory Reporting (for benchmarking the internal approaches) (as amended)
  • ID: 2021_5817
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 28/03/2022

Validation rule v6210_m, C105.02

What rules or regulations raise the upper limits for the ratio of RWA to EAD?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2021_5809
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 28/03/2022

Validation Rules v6205_m and v6206 in respect of portfolios with only Unfunded Credit Protection

How the two blocking Validation Rules v6205_m and v6206_m in current DPM, applicable to Supervisory Benchmarking reporting, shall be managed in light of the regulatory provisions of Article 158(5) of Regulation EU 575-2013 (CRR) allowing portfolios to have Expected Loss equal to zero and PD, LGD, EAD all greater than zero?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2021_6047
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 28/03/2022

To overrule the validation error V6205_m in SBP credit risk report

Can you agree to overrule the validation error V6205_m in SBP credit risk reporting for context date of 202012?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/2070 - ITS on Supervisory Reporting (for benchmarking the internal approaches) (as amended)
  • ID: 2021_5816
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 28/03/2022

Supervisory Benchmarking Exercise, Annex VI, C107.01, row 0010, column 0020

Is row 0010, column 0020 of C107.01, as specified in Annex VI expected to be filled in as compulsory field?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2021_5791
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as Rejected Q&A: 28/03/2022

Approval to exclude IPS exposures from the Leverage Ratio exposure measure.

It is not clear from the instructions whether a specific approval from the competent authorities is necessary to exclude IPS exposures from the leverage ratio exposure measure or the approval referred to in article 113(7) of CRR is sufficient.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2021_6322
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 28/02/2022

Validation rule v09753_m

Should the validation rule v09753_m  be adapted for column 0060 “Number of obligors”?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6314
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as Rejected Q&A: 28/02/2022

FINREP - Validation rules EBA_v10610 on F18.0

During the last reporting of 30/06/2021 and 30/09/2021 we received a return from ACPR about the validation rule EBA_v10610 on F18.0. The message is : "Failed XBRL rule v10610_m: [F 18.00.a (r0005;0010;0020;0030;0040;0050;0060;0070;0080;0090;0100;0110;0120;0130;0140;0150;0160;0170;0180;0181;0182;0183;0184;0185;0186;0191;0192;0193;0194;0195;0196;0900;0903;0197;0910;0913;0201;0330;0335)] {c0020} = {c0056} + {c0057} + {c0058}" We think the check is wrong on row 330. On this row, column 020 is the sum of rows 0180 + 0201 + 0231. Line 0231 corresponds to DEBT INSTRUMENTS AT STRICT LOCOM, OR FAIR VALUE THROUGH PROFIT OR LOSS OR THROUGH EQUITY NOT SUBJECT TO IMPAIRMENT or which the Finrep does not request a breakdown on the columns 0056 + 0057 + 0058.

  • 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
  • ID: 2021_6312
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 28/02/2022

Calculation of NPE ratio and coverage of NPEs with accumulated impairment and collateral following changed definition of gross carrying amount of debt instruments at fair value through other comprehensive income (in continuation: debt instruments at FVOCI) from "carrying amount before adjusting for any loss allowance" to "the amortised cost before adjusting for any loss allowance"

Should enter into calculation of NPE ratio and coverage of NPEs with accumulated impairment and collateral in case of debt instruments at FVOCI   "carrying amount before adjusting for any loss allowance" or "the amortised cost before adjusting for any loss allowance"?

  • 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
  • ID: 2021_6311
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as Rejected Q&A: 28/02/2022

Warning in COREP C42.00 (LR3) template validation regarding column 010, row 010 and row 020

Does COREP C42.00 template expect “Common Equity Tier 1 capital – fully phased-in definition” in row 010 column 010 should match with “Common Equity Tier 1 capital – transitional definition” row 020 column 010?

  • 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
  • ID: 2021_6307
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 28/02/2022