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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

Relation between the sale of business tool and take-over bid requirements

Does the reference to 'securities law' in Article 38(1) of Directive 2014/59/EU (BRRD) relate to take-over bid requirements? In general, what is the approach to the exemption to apply securities law requirements? For example, in case of bail-in in for the conversion into capital instruments an alternative in given, and therefore the investor has to decide between two instruments but the conversion is mandatory, could the obligation of prospectus be overridden? The same for a capital increase with pre-emption rights?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1787
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 06/02/2015

On-balance sheet netting and exemption from the Large Exposures limits

Are on-balance sheet (OBS) netting agreements, where there are maturity mismatches between loans and deposits, eligible the exemption from the large exposures regime as laid down in Article 400 of Regulation (EU) No 575/2013 (CRR)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1508
  • Topic: Large exposures
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Simplified obligations regarding recovery and resolution plans for a subsidiary constituting a significant share in the financial system of a Member State

Is a competent authority in charge of the supervision of a subsidiary constituting a significant share in the financial system of their Member State (according to paragraph 10 of Article 4 Directive 2014/59/EU (BRRD), to submit that request during the process of the assessment of group recovery plans if they want that subsidiary (part of the EU group with parent institution in another Member State) to draw up and submit a recovery plan on an individual basis, required (according to Article 7. paragraph 2) in order for that fact to form part of the joint decision regarding the group recovery plan or is the competent authority allowed to require individual plans to be drawn up independently from joint decision process prescribed in Article 8 of the BRRD? Is a resolution authority in charge of a subsidiary constituting a significant share in the financial system of their Member State (according to Article 4(10) of the BRRD ), if they want to prepare individual resolution plan for that subsidiary (part of the EU group with parent institution in another Member State), allowed to define topics of the resolution plan such as resolution strategy, measures to remove impediments to that strategy and MREL for that particular subsidiary separately from the joint decision process defined in Articles 13, 16, 18 and 45h of the Directive 2014/59/EU (BRRD)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1788
  • Topic: Simplified obligations
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Notification of stakeholders in the context of intra-group financial support

What is the scope of the obligations imposed by Articles 25(1) and 25(6) 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_1789
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 06/02/2015

On-balance sheet netting and exemption from the Large Exposures limits - question 1

Are on-balance sheet (OBS) netting agreements, where both legs are denominated in different currencies, exempted from the application of Article 395(1) of Regulation (EU) No 575/2013 (CRR)??

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1505
  • Topic: Large exposures
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Differences between proportionality in the CRD IV and Simplified obligations in the BRRD.

In accordance with the Directive 2014/59/EU (BRRD), Article 74(4) of CRD IV will expire when BRRD is implemented. Is the proportionality in the CRD IV different from the simplified obligations in the BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1793
  • Topic: Interactions with the CRR / CRD IV and the BRRD
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Meaning of "initial" recovery plan

What does the reference to the ‘initial’ recovery plan’ in Article 27(1)(a) of Directive 2014/59/EU (BRRD) mean? Is it the first recovery plan or does it relate to subsequent recovery plans?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1794
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Use of the resolution fund

Are the purposes for which a resolution fund can be used exhaustive according to Article 101 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_1797
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Intra-group financial support with regard to third countries

Why does Article 19 (1) of Directive No 2014/59/EU (BRRD) include third countries and how is the procedure of granting intra-group financial support supposed to work regarding third countries?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1799
  • Topic: Intra-group financial support
  • Date of submission:
  • Published as final Q&A: 06/02/2015

Non transferred assets, rights and liabilities of shareholders or creditors

Articles 38(13), 40(11) and 42(12) of Directive 2014/59/EU (BRRD) state that shareholders or creditors whose assets, rights and liabilities are not transferred, shall have no rights over the assets, rights and liabilities that are transferred. What is meant by that and how would this affect a creditors right in rem against an institution?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1775
  • Topic: Resolution safeguards
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Use of an existing legal person as a bridge Institution

In cases where a legal person already exists can this be used for the purposes of Article 40 of Directive 2014/59/EU (BRRD)? Does, in particular, Article 40(2)(b) of the BRRD exclude using a) a legal person that already exists but is now bought for this purpose; b) using a legal person that is being held available for this purpose by the institution concerned?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1774
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Timing of Valuation

Should the valuation according to Article 36(1) of Directive 2014/59/EU (BRRD) be carried out 1) only at the very beginning of the whole process, i.e. before the first application of the resolution tool or the power to write down or convert capital instruments or 2) in the cases where two or more tools or powers are applied should the valuation be carried out before each of them?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1773
  • Topic: Valuation
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Bridge Insitution Tool

Can you please clarify whether Article 41 (4) of Directive 2014/59/EU (BRRD) is about the sale by the resolution authority of the bridge institution; or the sale by the bridge institution of the institution in resolution or an entity referred to in Article 1(1)(b)(c)(d)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1772
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Appointment of Temporary Administrator

Does Article 29 of Directive 2014/59/EU (BRRD) mean that a competent authority can appoint a temporary administrator to replace the senior management as well as the management body?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1771
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Bail-in tool

Can the list of exemption from bail-in of Article 44(2)(g)(i) of Directive 2014/59/EU (BRRD) be interpreted such as to include a) continued payment of wages in case of illness; b) holiday pay; c) compensation for a worker who was unable to exercise his right to paid annual leave on account of incapacity for work?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1770
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Actions of a Special Manager

Is the scope of actions of a special manager mentioned in Article 35(3) of Directive 2014/59/EU (BRRD) an exhaustive list

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_1769
  • Topic: Special management
  • Date of submission:
  • Published as final Q&A: 30/01/2015

Treatment of Cash collateral

How does cash collateral be treated as this creates a financial asset when cash collateral has been given for initial margin or adverse margin. Does this form part of the other assets section of the return, or is it excluded? If it is to be included, should it be unencumbered?

  • 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_1039
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 16/01/2015

Issues with Template row headers

On Template C_16.00.b header row 'Subject to ASA' has been numbered on XBRL template as row 125 and inserted above row 130. Header row 'Subject to ASA' should appear on XBRL template C_16.00a above row 110

  • 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_1025
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 16/01/2015

Start of Probation Period

For exiting the non-performing category Art. 17 no. 157 requires that one year has passed since the forbearance measures were extended. Does that mean that, a) the probation period starts already at the date of the forbearance measure. b) The probation period starts only when the exposure is no longer considered impaired or defaulted.

  • 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_1018
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 16/01/2015

Tracking of Past-due amounts

In our view, the criterion “there is not, following the forbearance measures any past-due amount” must be met at the date when the exit criteria is examined (regardless whether there have been any past-due amounts before that date but after the extension of the forbearance measure). Do you agree?

  • 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_1016
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 16/01/2015