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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

Certificate of Deposits (CDs)

How should we treat CDs (Certificate of Deposits) that we have issued? Could we treat them as deposit or should they be treated the same why as an issued senior bond?

  • 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: 2015_2305
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Treatment of Eligible CRM CDS for Leverage Ratio

Should credit derivatives subject to the CRR Article 273(3) which have zero exposure value for counterparty credit risk purposes also be treated as having zero value for the Leverage ratio exposure measure under CRR Article 429c(1)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/62 - DR with regard to the leverage ratio
  • ID: 2015_2165
  • Topic: Leverage ratio
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Providing IGFS pursuant to Article 19(3)

It is our understanding that the support which is provided without the existence of prior Intra Group Financial Support (IGFS) agreement still must meet all other conditions set by the Chapter III of Title II of Directive 2014/59/EU (BRRD) (i.e. the chapter which regulates Intra Group Financial Support). Providing IGFS pursuant to Article 19(3) is only possible if, inter alia: 22 conditions set by Article 23 BRRD are met (including the link to article 19, i.e. that each party must be acting in its own best interest); and 22 providing of such financing is notified to the supervisory authority and approved by that authority as required by Article 25. Can this be clarified? Providing IGFS without the prior IGFS agreement could mean that Articles 20, 21 and 22 BRRD would be circumvented and therefore e.g. shareholders (including minority shareholders) would lose entirely the safeguard which is embedded in Article 21 BRRD. Can it be also clarified if it is therefore necessary to apply Articles 20, 21 and 22 to the contract which would be concluded between the IGFS provider and IGFS receiver pursuant to Article 19(3).

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2718
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 13/05/2016

CVA for Exposures in structures with underlying assets

In case the bank invests in a structure with underlying assets (e.g. UCITS) that consist also of derivatives. Should the CVA also be calculated for these exposures?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_637
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Exclusion of Intragroup Liabilities -Treatment of cases when one institution pays annual contribution according to Article 10 of DA (lump sum) and the other according to standard risk-weight reflecting approach

How to apply requirement of Article 5 (1) (a) to exclude intragroup liabilities arising from transactions between institutions where one party to the transaction qualifies for lump-sum contribution in line with Article 10 of DA?

  • 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: 2015_1922
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Annual contribution of institutions newly supervised, institutions non existent in the reference year for contribution calculation, and institutions that ceased to be supervised

How to apply a requirement of the Article 12 of DA to determine a partial contribution calculated during subsequent contribution in case newly supervised institutions, institutions that ceased to exists / be supervised, and the institutions that were not existent in time in the reference year for contribution calculation as detailed in Article 14 of DA?

  • 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: 2015_1925
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 13/05/2016

Exclusion of positions from the calculation of net open currency positions

May positions that are already deducted in the calculation of own funds be excluded from the calculation of net open currency positions according to Articles 351, 352 of the Regulation (EU) No 575/2013 (CRR)? If the answer is "yes", are there any explicit legal provisions that say so?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2317
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 28/04/2016

Reporting of retail deposits to internet banks that are also partly used as collateral for various broker services such as forex and other OTC derivatives.

As per Commission Delegated Regulation EU of 10.10.2014 to supplement Regulation 575/2013 with regard to liquidity coverage requirements for credit institutions, it is stated that outflows from other retail deposits should be treated according to Article 25. Does this include retail deposits that are also partly used as collateral for broker services? 

  • 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: 2015_2301
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 28/04/2016

Minority interests

Are minority interests that arise from a bank subsidiary (as in the example), which are indirectly attributable to third parties, eligible at the EU parent consolidated level?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2157
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 28/04/2016

Large exposure reporting – Criteria for reducing the value of an exposure secured by commercial immovable property

Is Article 194(3)(b) relevant for accepting or rejecting commercial immovable property to reduce the value of an exposure secured by commercial immovable property according to the Article 402(2) when an institution uses the standardised approach for calculating credit risk capital requirements?

  • 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_1659
  • Topic: Large exposures
  • Date of submission:
  • Published as final Q&A: 22/04/2016

Datos C.15.00 / data C 15.00

Original Question:Cuándo se habla de pérdidas se incluyen las dotaciones específicas? Translated Question:Do ‘losses’ include specific provisions?

  • 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_961
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

CR IP Losses

Please can you clarify what should be reported in column 010 and 030 in CR IP Losses return. The query can be better expressed in the form of an example as below: The loan secured on Commercial Property is £65m and the market value of property before default is £60m. Therefore % lending secured = £60*50%/£65=46% Loss = £65-£60=£5 (this also gets reported in column 30) Column 10 = £5*46% = 2?? Assuming the entity applies 100% RW and not 50%/60% %lending secured = £60*100%/£65=92% Loss = £65-£60=£5 (this also gets reported in column 30) Column 10 = £5*92% = 4.6?? Or column 010=column 030= £5m (assuming 100% RW)

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1713
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

Validation Rule v3684_s,v3693_s,v3695_s

The fields within the scope of the three rules deliver values for various transitional adjustments to different types of capital.The three rules(v3684_s,v3693_s,v3695_s ) state that these values must be positive. There may be a problem with the sign, as some of the values referenced per CA1 could be negative.As examples I hereby include: -v3684_s : CA1 - field [730,010] Other transitional adjustments to AT1 Capital ; field [960,010] Other transitional adjustments to T2 Capital -v3693_s : CA5.1 - field [140,060] Deductions; field [180,060] IRB shortfall of provisions to expected losses; Are these rules correct ?(perhaps just the scope of the rules needs adjusting)

  • 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_1133
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

Reporting of initial margin posted in the context of derivative transactions and contribution to default funds to CCPs

Where should assets which a bank has posted on its own behalf as initial margin in the context of derivative transactions and contribution to default funds to CCPs be reported in the template C 60.00?

  • 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: 2016_2598
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

Rows 660 – 770 of the template C 60.00 of Annex XII of the ITS on supervisory reporting do not seem to be feasible for the reporting of equities if these are considered as liquid assets. After the application of the LCR Delegated act some equities are considered as level 2B liquid assets. Therefore a solution is needed on where to report these assets in this template.

Where should equities, when considered as level 2B liquid assets, be reported in the template C 60.00 of Annex XII of the ITS on supervisory reporting?

  • 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_2500
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

Amounts to be reported under derivatives receivables in C 60.00 (row 1290) and under liabilities from derivatives payables contracts in C 61.00 (row 240) of the - ITS on supervisory reporting of institutions.

Shall the amounts to be reported in derivatives assets or liabilities in rows 1290 and 240 respectively in C 60.00 and C 61.00 of the ITS on supervisory reporting of institutions be deducted by variation margins received or posted or shall they be gross amounts?

  • 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_2499
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

C 60.00 Items requiring stable funding – amounts to be reported under rows r040 – 070 and 152 – 153

Shall the amounts to be reported under rows 040 13 070 and 152 13 153 of C 60.00 include also encumbered assets or only unencumbered assets?

  • 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_2498
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

C 60.00 and C 61.00 – clarification on the amount extremely high liquidity and credit quality, on the amount high liquidity and credit quality and amount other assets

Which assets in rows 10 to 890 of the template C 60.00 of Annex XII of the Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions - shall be considered of extremely high liquidity and credit quality, of high liquidity and credit quality and as of other assets in the context of items requiring stable funding? The same question arises with respect to the template C 61.00 of the same Annex in rows 070 to 090 and in rows 140 to 160.

  • 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_2497
  • Topic: Supervisory reporting - Liquidity (LCR, NSFR, AMM)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

FINREP – Non-performing exposures during performing probation period

Clarification is requested surrounding non-performing probation periods. Scenario If a customer 19s exposure has previously had a concession event and has been classified as non-performing then they shall serve a 1 year non-performing probation period from the date of the concession event followed by a 2 year performing probation period (on the assumption they met all the exit criteria from non-performing probation). If the customer re-enters non-performing classification during the 2 year performing probation period, through: 1) Going more than 30 days past due; or 2) Non-performing as per any of the criteria per paragraph 145. a) Will the customer serve another 1 year non-performing probation? And if so, when would that non-performing probation period start from, as there has not been a new forbearance measure? b) Or would the customer go straight to a new 2 year performing probation period on the exit of non-performing criteria? Note: The scenario where customer becomes non-performing again due to a new concession event being issued (paragraph 179) is intentionally excluded from the above query. It is believed by the institution that this could only follow option a) above with a new non-performing probation period starting from the date of the new concession event.

  • 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_2145
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 15/04/2016

FINREP Counterparty Breakdown (ESA 2010)

Annex V, Part 1, Reference 6.34 (b) 'general governments': Please confirm that public companies and private companies controlled by central governments, state or regional governments, local governments (including administrative bodies and non-commercial undertakings), that are market producer has to be reported in accordance with ESA 2010 (which may either lead to a classification as "non-financial corporation" or "financial corporation"). Annex V, Part 1, Reference 6.34 (d) 'other financial corporations': Please confirm that 'captive financial institutions' according to ESA 2010 has to be reported under 'other financial corporations'.

  • 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_1758
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 15/04/2016