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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

EBA mapping tool deviation CR7-A column "Total exposures"

Following EBA ITS 2020/04, the instruction to fullfill CR7-A first column - Total exposures- recommands to disclosure :  "Exposure value (post conversion factors) in accordance with Articles 166 to 167 CRR Exposures shall be disclosed in accordance with the exposure class applicable to the obligor, without taking into account any substitution effects due to the existence of a guarantee."  => According to our understanding, we select EAD post conversion factor before credit risk mitigation (CRM) and not after CRM

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6740
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 16/05/2023

Reporting of deposit facility (overnight deposits with the central bank) in template C_66.01

It is not clear in which row of template C_66.01 the overnight deposits in central banks such as the deposit facility shall be reported.

  • 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: 2023_6784
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as Rejected Q&A: 15/05/2023

Definition of residential property

I am bringing a point to your notice where in article 4(75) the residential property is defined as a residence which is occupied by the owner or the lessee of the residence, including the right to inhabit an apartment in housing cooperatives located in Sweden. This has led to quite some confusion in my organisation as to what definition applies in other Nordic countries. Given that we have a presence in all Nordic countries, we expect a generic definition which can be consistently applied for the correct treatment of collateral types. These further also impact how the customer segments (rating systems) are defined as according to the regulation the exposure secured by RRE must be excluded when defining thresholds for retail vs non-retail customers. Therefore, I request you to either 1) modify the definition so that it is clearer if the same definition can be applied in all countries, or 2) Remove the specific country name "Sweden" from the definition, or 3) the institutions can follow local FSAs for such definitions, or 4) They can have their own guidelines for such definitions.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions
  • ID: 2023_6761
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 04/05/2023

Opinion to Question 2020_5551, whether an institution is allowed to apply the supporting factor for SMEs and the supporting factor for infrastructure projects simultaneously.

A pending Question 2020_5551 asks an opinion whether an institution is allowed to apply the supporting factor for SMEs (Art 501) and the supporting factor for infrastructure projects (Art 501a) simultaneously. I share here my opinion to help the answer, as it would be important to our institution, and I think the answer is simplier than thought suggested on that question. The pending question I am referring to is under the link https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2020_5551

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6725
  • Topic: Credit risk
  • Date of submission:
  • Published as Rejected Q&A: 04/05/2023

Collateral swaps where the borrowed and lent collaterals are in different currencies

For a collateral swap where borrowed and lent securities are subject to the separate reporting  as referred to in Article 415(2) of Regulation (EU) 575/2013, we wonder how the transaction must be reported in the c75 , or eventually in 2 different transactions in c73 and c74 but in this case we don't know in which cells and with which weight.  For example, for a settled collateral swap where level 2B USD – market value of 150m is lent and level 2A EUR – market value of 120m is borrowed.  The amounts are already converted into the reporting currency. And we raise the same question if the transaction is forward starting in the LCR window and maturing outside.  

  • 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: 2023_6772
  • Topic: Liquidity risk
  • Date of submission:
  • Published as Rejected Q&A: 04/05/2023

One Percent threshold to report an institution in the TOP 10

Should the institution report the section 1 of C67.00 based of 1% of total liabilities or based of 1% of total liabilities reported in section 1? In other words, based on Q&A 2018_4209 which has been published after the release of DPM 3.00 will you updated AMM ITS?

  • 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: 2022_6664
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as Rejected Q&A: 04/05/2023

Transitional provisions under the IFR (Regulation 2019/2033)

How should the “twice the relevant own funds requirement pursuant to Chapter 1 of Title I of Part Three of Regulation (EU) No 575/2013”, referred to in article 57(3)(a) of Regulation 2019/2033 be understood?

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_5808
  • Topic: Prudential consolidation
  • Date of submission:
  • Published as Rejected Q&A: 25/04/2023

Fixed overheads - deduction of expenses related to exchange rate differences for money belonging to clients and for which investment firms provide custody services according to MIFID

Can expenses related to exchange rate differences, only for the money (with amounts in foreign currency) belonging to the clients and for which the investment firm provides custody services according to MiFID, also be deducted from the total expenses even though they are included under total expenses in accordance with the relevant accounting framework?

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6738
  • Topic: Fixed overheads requirement
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Definition of trading book according to new IFD/IFR

Should the proprietary positions of the investment firm in the financial instrument in order to invest own funds of the investment firn which are held until maturity (for long-term) be recorded in the non-trading book and thus for such cases the investment firm would not need to have licence for dealing on own account?     

  • Legal act: Regulation (EU) No 2019/2033 (IFR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6463
  • Topic: Capital requirements
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Definition of NPL Ratio for EBA Dashboard and Disclosure

Please clarify, whether or not this inconsistency between NPL ratio definitions in a) EBA Dashboard and b) Disclosure is intended, and which definition is used by EBA for classifying an institute as a “High NPL Bank” (5% threshold).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2021_6215
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Regular buy and sell activity between ALM/Treasury departments and internal market making desks (Trading Book)

Are transactions between ALM/Treasury (identified as Banking Book) and an internal market making desk (Trading Book) in the scope of Article 104a (Re-classification of a position) Regulation (EU) No 575/2013 of the European Parliament and of the Council (CRR), even when such transactions fulfill the following conditions: They are conducted on an arm’s length basis (the market making desk in the Trading Book is considered as any other client, identical to external counterparties); The purpose of such transactions is to pursue prudential objectives (such as market testing of the HQLA buffer, inter alia).

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6769
  • Topic: Market risk
  • Date of submission:
  • Published as Rejected Q&A: 24/04/2023

Clarification on use of prearranged and highly reliable funding arrangements

If a CSD-banking service provider has routine credit at a central bank of issue in the EU, are the requirements in Article 11, paragraph 1, subparagraphs (b) and (d) simultaneously met?

  • Legal act: Regulation (EU) No 909/2014 (CSDR) - only RTS 2017/390
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2017/390 - RTS on prudential requirements of CSDs (CSDR-related)
  • ID: 2023_6733
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 21/04/2023

Clarification on the need for a prearranged and highly reliable funding arrangement to liquidate collateral referred to in Article 11, paragraph 2

What type of arrangement is required under Article 11, paragraph 2, subparagraph (c), point (i)?

  • Legal act: Regulation (EU) No 909/2014 (CSDR) - only RTS 2017/390
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2017/390 - RTS on prudential requirements of CSDs (CSDR-related)
  • ID: 2023_6732
  • Topic: Market infrastructures
  • Date of submission:
  • Published as Rejected Q&A: 21/04/2023

Reporting outflows from covered bonds and asset-backed securities in COREP template C 73.00

In which row of template C 73.00 should institutions report the outflows from debt securities such as covered bonds or asset-backed securities issued by the reporting institution?

  • 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: 2022_6443
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Promotional loans that constitute claims on central governments, regional governments, local authorities or public sector entities

As per article 429a (1), paragraph (d) of CRR, only claims on central governments, regional governments, local authorities or public sector entities in relation to public sector investments and promotional loans are exempt from Leverage ratio exposure where the institution is a public development credit institution, the exposures arising from assets that constitute claims on central governments, regional governments, local authorities or public sector entities in relation to public sector investments and promotional loans. In C40 report, ITS mentions that this part of the reporting collects data on an alternative treatment of derivatives, SFTs, off-balance sheet items, exempted public sector investments and exempted exposures to promotional loans. In C40 report also only exempted exposures to promotional loans are to be reported. That is claims on central governments, regional governments, local authorities or public sector entities only are to be reported in C40 report also. Row 0350 of C40 report requirement Promotional loans - Claims on non-financial corporations - Accounting balance sheet value Where the institution is a public development credit institution, the accounting balance sheet value under the applicable accounting framework of assets that constitute claims on non-financial corporations in relation to promotional loans Row 0360 of C40 report requirement Promotional loans - Claims on households - Accounting balance sheet value Where the institution is a public development credit institution, the accounting balance sheet value under the applicable accounting framework of assets that constitute claims on households in relation to promotional loans  As the only exposures to promotional exempt are to be reported in C40 also. However these two rows 0350 and 0360 of C40 report requirements are not in cosistence with the article 429a (1) (d) and (e) also. Please clarify.

  • 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: 2022_6550
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

SFTs exposure value on template C 48.02

What exposure value should be reported for a repurchase transaction on template C48.02 where the provided security is retained on the  balance sheet?

  • 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: 2023_6689
  • Topic: Supervisory reporting - Leverage ratio
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Validation error v4390_s

Validation rule v4390_s does not allow the reporting of negative amounts in F01.01 for all row items. We report however a negative amount in the Funding Plan reporting under 'other assets' (F01.01 row 211) which is due to a negative amount in the FINREP reporting under 'Fair value changes of the hedged items in portfolio hedge of interest rate risk' (F01.01 row 250) which is due to the application of IAS 39 89A (a). Can the validation rule be adapted, or guidance be provided with regard to the treatment in case of a negative amount in the FINREP reporting under 'Fair value changes of the hedged items in portfolio hedge of interest rate risk' (F01.01 row 250)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2019/05 – Guidelines on harmonised definitions and templates for funding plans of credit institutions under Recommendation A4 of ESRB/2012/2 - repealing EBA/GL/2014/04
  • ID: 2023_6751
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Incorrect validation rules related to Funding Plan

We observed that the following validation rules are causing error in submission to NBB Onegate via dissemination exchange and thus being refused to be accepted in the system. 1) eba_v6230_m 2) eba_v08995_m 3) eba_v08991_m

  • 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: 2023_6754
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as Rejected Q&A: 18/04/2023

Requirement for STS securitisations to involve a securitisation special purpose entity (SSPE) which acquires title to the underlying exposures by means of a true sale or assignment or transfer with the same legal effect

Can securitisations where the seller sells the underlying exposures directly to the funding party (typically a bank) rather than involving an SSPE also qualify as 'simple, transparent and standardised’ (STS) securitisations?

  • Legal act: Regulation (EU) No 2017/2402 (SecReg)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2023_6734
  • Topic: Simple Transparent and Standardised securitisation
  • Date of submission:
  • Published as Rejected Q&A: 14/04/2023

Prudential filters to the fair value reserves associated to Cash Flow Hedge

Does the prudential filter established in CRR Article 33(1) apply only to unrealised capital gains and losses?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2022_6580
  • Topic: Own funds
  • Date of submission:
  • Published as Rejected Q&A: 14/04/2023