Search for Q&As

Enquirers can use various factors to search for a Q&A:

  • These include searching by the Q&A ID; legal reference, date submitted, technical standard / guideline, or by keyword if known.
  • Searches can be extended to more than one legal act, topic, technical standard or guidelines by making multiple selections (i.e. pressing 'Ctrl' on your keyboard, and selecting the relevant ones from the drop-down lists by left mouse-click).

Disclaimer:

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.

Final Q&As Q&As under review Rejected Q&As Archived Q&As All Q&As

List of Q&A's

Effective absence of set-off or netting arrangements

If a statutory set-off or netting right exists and cannot be contractually excluded, would an AT1, T2 or eligible liabilities instrument be automatically considered ineligible pursuant to, respectively, Article 52(1)(r), Article 63(p) or Article 72b(2)(f) of Regulation (EU) No. 575/2013 (CRR) or would the instrument be eligible as long as the conditions for such statutory set-off or netting are not fulfilled, in particular in cases where a counterclaim to be used for set-off or netting does not exist? If a statutory set-off or netting right exists, can be contractually excluded, but has not been excluded, would the instrument be automatically considered ineligible or would the instrument be eligible as long as the conditions for such statutory set-off or netting are not fulfilled, in particular in cases where a counterclaim to be used for set-off or netting does not exist?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6285
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

The use of the financial collateral comprehensive method for retail exposures

If an institution uses the combination of A-IRB and F-IRB approaches for its retail (A-IRB) and corporate exposures (FIRB), can this institution then only use the Financial Collateral Comprehensive Method (FCCM) for its corporate exposures? If yes, what should it do for its retail exposures secured by financial collateral?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6279
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Treatment of management actions by competent authorities when providing guidance on additional own funds (P2G) within SREP

(a) When providing guidance on additional own funds in accordance with Art. 104b of CRD, should competent authorities adjust for the specifics of an institution’s risk profile with regards to in particular: The level of strategic investments for business expansion, where a rapidly expanding business will have a cost base that to a larger extent is made up of discretionary or non-recurring expansion costs compared to an institution with a lower level / share of investment for business expansion; and The nature of the lending business, e.g., accounting for the difference between a balance sheet primarily made up of short-term assets as compared with a bank with primarily long-term assets, in order to fulfil the requirement of an institution-specific guidance? (b) When providing guidance on additional own funds in accordance with Art. 104b of CRD, should competent authorities assess the credibility of management actions taking into account the specifics of the institution, with regards to in particular: The level of strategic investments for business expansion, where a rapidly expanding business will have a cost base that to a larger extent is made up of discretionary or non-recurring expansion costs compared to an institution with a lower level / share of investment for business expansion; and The nature of the lending business, e.g., accounting for the difference between a balance sheet primarily made up of short-term assets as compared with a bank with primarily long-term assets. in order to fulfil the requirement of an institution-specific guidance?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2018/03 - Guidelines on the revised common procedures and methodologies for SREP and supervisory stress testing (consolidated version)
  • ID: 2021_6278
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Jump-to-default risk weights in specific reporting requirements for market risk

Which risk weights should be used in the case of multiple exposures in different seniority classes and credit quality steps to the same obligor?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2021/453 - ITS with regard to the specific reporting requirements for market risk
  • ID: 2021_6273
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Aggregation of risk-class specific own funds requirements for delta, vega and curvature risks

Should own funds requirement for Sensitivities Based Approach  be the sum of GIRR, CSR, Equity and Forex requirement arising from the scenario with the highest total requirement value? or result from the scenario with the highest total requirement at the individual asset level class? And how to calculate the requirement in Article 325h(4)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6272
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Trading book business for the purposes of Article 94 CRR

What is meant by "positions concerning foreign currency"? Any derivative contract that has a currency pairs as underlyng (e.g. forex swap, forward foreign exchange contracts, cross-currency interest rate swaps, option currency)? Also contracts settled in currencies other than the reporting currency?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6270
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Common Equity Tier I Minority Interest Calculation

Should a specific level of profit distribution set by a third country competent authority, and communicated specifically to an institution, be considered “any additional local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital” for the purposes of the minority interest calculation provided in Article 84 1 i) and ii))  when this limit has been set above legislative prudential requirements with the aim of preserving capital above an specific limit by the way of limiting profit distribution?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6262
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Application of Articles 52 and 54 of Regulation No. 575/2013 (CRR) at consolidated level

How should the consolidated level of AT1 instruments where the issuer is a 100% fully owned subsidiary of an EU institution where the subsidiary is established in a third country and has not been designated in accordance with Article 12 of Directive 2014/59/EU (BRRD) as part of a resolution group the resolution entity of which is established in the Union be treated?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6261
  • Topic: Other issues
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

LCR treatment of deposits received as collateral

Should deposit received as collateral for a facility, in the case where a credit institution’s client has an option for early termination of this facility, which could lead to an outflow of the collateral during the next 30 calendar days, be assigned an additional outflow corresponding to 100% in accordance with Article 30(6) of Delegated Regulation (UE) 2015/61?

  • 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
  • ID: 2021_6238
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

Discount factor for the exposure under the standardised CVA risk capital requirement

Is it still correct for non-IMM banks to discount the exposure according to Article 384 CRR?

  • 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: 2021_6244
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 29/04/2022

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