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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

Statement of Profit or Loss

1. What has to be included in 350 Other Operating Expenses and what in 380 Other Adminstrative Expenses? It is not clear what the difference between these two data points is, and to what extent we have the option to classify costs in one data point or the other. 2. Is it true that as long as in our judgement we consider a cost an operating cost, it should be included in 350 Other Operating Costs? 3. Are lessee costs, ie operating lease rentals, the only item we should be including or are required to include in data point 380 Other Administrative Expenses?

  • 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_1002
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Defintion of “micro, small and medium sized enterprises”

How should be defined the concept of “micro, small and medium sized enterprises” given by the Article 108(a)(i)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1827
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Inclusion of interim profits in CET1

If a credit institution includes interim profits in Common Equity Tier 1 capital (with the prior permission from the competent authority in accordance with Article 26(2) of the CRR), can the institution decide that in the following interim period it will not apply for a permission concerning interim profits for that (current) interim period, but to use the (previously permitted) amount of interim profits for the previous interim period? For example, a credit institution received a prior permission from the competent authority and included interim profits reported on 30 June in its CET1 capital. When calculating CET1 capital on 30 September, can it choose not to apply for a prior permission from the competent authority to use interim profits reported on 30 September and, instead, include the amount of interim profits reported on 30 June (the same amount it has included in the calculation in the previous quarter)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1242
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Client money

To what extent the deposits linked to securities accounts can be qualified of “client money”?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1826
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 08/05/2015

Treatment of Sovereign Wealth Funds as non-financial customers or financial customers

If an institution has unsecured deposits from a Sovereign Wealth Fund, are those deposits from financial customers or deposits from non-financial customers?

  • 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_1764
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 30/04/2015

Deposits received as collateral

Under 423(6) of Regulation (EU) No 575/2013 (CRR) should the deposits received as collateral be calculated as net posted collateral in order to treat posted and held cash collateral symmetrically? What if more cash collateral is posted than held? Thus should all other posted level 1 collateral not be reported?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1089
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 30/04/2015

Exposure to third country institutions and investment firms

What is the treatment for credit risk purposes of an exposure to an investment firm which is established in that third country and which is subject to the supervisory and regulatory requirements applicable to credit institutions in that country?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1968
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 30/04/2015

Disclosure on the basis of consolidated situation of EU parent financial holding company

According to Article 13(2) of Regulation (EU) No 575/2013 (CRR), institutions controlled by an EU parent financial holding company shall comply with the obligations laid down in Part Eight on the basis of the consolidated situation of that financial holding company. In the case where a parent financial holding company has control over two separate institutions in different member states (without any equity holdings between these two institutions), are both of these institutions obliged to disclose information laid down in Part Eight on the basis of consolidated situation of the parent financial holding company? If yes, is there possibility that one of aforementioned institutions can “outsource” disclosure obligations on the basis of consolidated situation of the parent financial holding company to the other?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1502
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as final Q&A: 24/04/2015

Removal of Senior Management

We would like clarification on Article 28 of Directive 2014/59/EU (BRRD) envisaging the possibility to remove the senior management and also with regard to individuals. This seems the same power that is already envisaged in Article 27(1)(d) providing for the removal of managers that are unfit to perform their duties albeit linked to a different trigger; therefore different triggers could end up with the same early intervention measures.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1862
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 17/04/2015

Solvency in the context of Article 32(4)(d)

What is a solvent institution in the context of Article 32(4)(d) of Directive 2014/59/EU(BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1777
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 17/04/2015

Definition of the exposure portfolio for which permanent partial use of standardised approach can be applied for by a credit institution using the IRB approach

Can an IRB credit institution have the standardised approach applied to type of clients to whom the IRB approach is being used? I.e. if the standardised approach is approved for a specific portfolio of exposures, can this portfolio be defined by the type of client only or may it also be defined by the type of business?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1678
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 10/04/2015

Disclosure requirement on individual basis

What is the connection between the provisions of Article 13 and Article 433 of Regulation (EU) No 575/2013 (CRR)? When shall the institutions disclose all the information required by Part Eight and on what condition could the limited disclosure requirement be applied on individual basis?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1379
  • Topic: Transparency and Pillar 3
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Scaling factor for IRBA securitisations with 1250% risk weight under the Ratings Based Method

Does an institution have to multiply the risk-weighted exposure amount of a banking book IRBA securitisation with a 1250% risk weight under the Ratings Based Method with the scaling factor of 1.06?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1179
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Consideration from residual values in the LCR calculation

As significant inflows from residual values of large portfolios of leased cars are not regulated within Part 6 of Regulation (EU) No 575/2013 (CRR) how may institutions who professionally manage such portfolios take those values into account?

  • 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: 2013_191
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Error in validation v0623_m (C.21.00 – MKR SA EQU)

Please confirm whether v0623_m is erroneous (refer to background on question for further detail) and if so, what the correct validation should be.

  • 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_1374
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Scope for probation period

Paragraph 176 defines the criteria to discontinue forbearance classification. According to paragraph 176 (b) "...a minimum 2 year probation period has passed from the date the forborne exposure was considered as performing". According to Annex II “EBA ITS 2013 03 Annex I (Annex I ITS FBE NPE Amemdments Annex III ITS reporting IFRS templates)” paragraph 176 (b) is only applicable to table 19 column 50 (of which: Performing forborne exposures under probation). Does this mean that the 2 year probation period is only required for exposures which are reported in column 50 – i.e. exposures with forbearance measures which have been reclassified out of the non-performing forborne exposure columns (see paragraph 180)?

  • 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_878
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Clarification of EBA answer published for Q&A 2014_1000

Q&A 2014_1000 states that there are only two accepted ways in FINREP to report interest income and expenses from financial instruments held for trading, interest income and expenses (“clean price”) or as part of the gains and losses from these assets (“dirty price”), and that for economic hedge there is the possibility to report the amounts separately as financial income or expenses.How should this answer be understood in the case of credit institutions applying “dirty price convention”? The possibility to report the amounts separately as interest income or expenses (mentioned in the last sentence of the answer) envisages only the items “Interest income. Financial assets held for trading” and “Interest expenses. Financial liabilities held for trading”?

  • 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_1878
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 27/03/2015

Inclusion of consolidated current and year-end profits in Common Equity Tier 1 Capital

According to Articles 18 and 19 of Regulation (EU) No 575/2013 (CRR), institutions have to carry out a prudential consolidation. The scope of entities included in prudential consolidation can differ from the scope of full financial consolidation. For the purposes of meeting the requirements of Article 26(2) of the CRR, should the current as well as year-end profits resulting from the prudential consolidation also be verified by persons independent of the institution that are responsible for the auditing of the accounts of that institution? Is the General Meeting of Shareholders obliged to confirm the year-end profit for the Group prudentially consolidated, in addition to the year-end profit for the Group financially consolidated?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1221
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 20/03/2015

Validation rule v1384_m

With reference to Question ID 2013_345. Here you defined that the accounting of the impact of foreign currency translation (gain or loss) is included in row 190 ("Other Increase or Decrease in equity") and in column 050 ("Accumulated other comprehensive income"). Validation rule v1384_m defines that: sum({F 46.00, r200, ({c050}, {c100})}) is on par with {F 03.00, r360,c010}. One part of F 03.00, r360, c010 is the position: F 03.00, r150, c010 "Foreign currency translation" (Sum of r160 & r170). So, if we see that correctly, the impact of foreign currency translation would be part of {F 03.00, r360,c010} but not part of sum({F 46.00, r200, ({c050}, {c100})}). Consequence is that is not possible that validation rule v1384_m succeeds.

  • 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_1529
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 13/03/2015