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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

Asset Encumbrance - Eligible collateral in a central bank

Should deposits at central banks be reported as central bank eligible 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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: 2017_3619
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Wrong validation rule v2855_m

Is a netting of repurchase agreements with securities lending needed in Asset Encumbrance?

  • 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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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_2190
  • Topic: Supervisory reporting - Asset Encumbrance
  • Date of submission:
  • Published as final Q&A: 13/12/2019

CRR's definition of an investment firm

Article 4(1)(2)(c) CRR contains three conditions for an investment firm, as defined by MiFiD I, to be excluded from the CRR definition of an investment firm. What is the difference between the first and the third condition set in this article?Under what circumstances can you have an investment firm that is permitted to hold money or securities belonging to its clients that has not been authorised to provide safekeeping and administration of financial instruments for the account of its clients?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3663
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 13/12/2019

Compliance with SCA in offline mode on an aircraft without internet connection

How can Strong Customer Authentication (SCA) be applied in an offline environment onboard an airplane when chip and pin cannot be verified with a Point of Sale (POS) device? Specifically, how is dynamic linking achieved in an offline mode for airlines who don't have internet connectivity but instead have a closed wireless network to be able to make purchases onboard an aircraft?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication
  • ID: 2019_4740
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 06/12/2019

Unsuccessful authentications and declined transactions effect on the counters of cumulative amount and number of consecutive transactions

Do failed authentications or declined transactions increase the counters of cumulative amount or number of hits?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication
  • ID: 2019_4785
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 06/12/2019

Definition of local firm under Article 4(1)(4)

Does the reference to “dealing for its own account” set-out in Article 4(1)(4) of the CRR include acting in the role of a “market maker” (as defined in Directive 2014/65/EU – MiFID II)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4260
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 06/12/2019

Clarification of the treatment of contracts for difference (CFD)

Shall long (short) positions in CFDs, where the underlying is denominated in foreign currency, be treated as a single long (short) foreign currency position equal to the market value of the notional position of the underlying or market value of the CFD in the quote currency?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3137
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 29/11/2019

Separate IMA approval or summation approach for market risk OFR at consolidated level

Assuming that a parent institution does not have permission by the competent authorities to use the Internal Models Approach (IMA) on consolidated level, but(i) it has the permission to use the IMA on individual level and/or one (or several) of its subsidiaries have the permission to use the IMA on individual level or (ii) it has no permission to use the IMA on individual level and only one (or more) subsidiaries have the permission to use the IMA on individual level.Question 1:Is the parent institution compliant with the requirements of the CRR (in particular Articles 11 and 363(2) thereof) if it calculates the own funds requirements for market risk on consolidated level by summation of (i) the individual VaR, sVaR (and where applicable IRC and CRM) where IMA permission on individual level has been granted; and(ii) the own funds requirements according to the standardised approaches for market risk in accordance with Chapters 2, 3 and 4 of Title IV of Part Three of the CRR for consolidated entities which do not have IMA permission?Question 2: Does the assessment depend on whether permission has been granted for the consolidating parent entity on individual level?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4021
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 29/11/2019

Offset of Additional Value Adjustments (AVA) against day one profits deferral

Under Article 8(3), is day one profit deferral eligible to offset the AVAs under Articles 9, to 17 of Regulation (EU) No. 2016 / 101?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2016/101 - RTS for prudent valuation under Article 105(14) CRR
  • ID: 2019_4458
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 29/11/2019

IFRS 9, validation rule v6030_m

Validation rule v6030_m for IFRS 9 (taxonomy 2.7) seems to be incorrect. Subsequently validation rules v6031_m, v6032_m, v6033_m, v6034_m, v6035_m, v6036_m, v6037_m and v6038_m seem also to be incorrect. Template F 12.1 contains a reconciliation of the opening and closing balances of the allowance account for financial assets measured at amortised cost and at fair value through other comprehensive income broken down by impairment stages, by instrument and by counterparty. If there are allowances for other demand deposits (table F 01.01. row 040) do these allowances have to be reported in table F 12.01.a as well? In case of that allowances for other demand deposits have to be shown in table F 12.01.a the validation v6030_m (and subsequently the validation rules v6031_m, v6032_m, v6033_m, v6034_m, v6035_m, v6036_m, v6037_m and v6038_m) can't be fullfilled as table F 04.03.1 and F 04.03.1 do not include other demand deposits.

  • 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: 2018_3835
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 22/11/2019

Application of Article 254(2) to derivative exposures

Is new Article 254(2) CRR applicable to derivatives positions to hedge market risk?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2019_4465
  • Topic: Securitisation and Covered Bonds
  • Date of submission:
  • Published as final Q&A: 15/11/2019

IRRBB Application of the sudden parallel

How should banks apply the sudden parallel +-200 basis points shift of the yield curve in their forecast yield curve?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2015/08 - Guidelines on the management of interest rate risk arising from non-trading activities
  • ID: 2019_4448
  • Topic: Other topics
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Deduction of deferred tax assets that rely on future profitability

Is the deduction of the deferred tax assets that rely on future profitability (hereinafter, the “DTAs”) and the amount of the associated deferred tax liabilities (hereinafter, the “DTLs”) relevant for the calculation of the amount to be deducted from Common Equity Tier 1 (CET1) according to Article 36(1)(c) of Regulation (EU) No. 575/2013 (CRR) to be determined independently of the Accounting Policies defined by the Bank for the offsetting of the DTAs and the DTLs in the Balance Sheet and regardless of the way in which the DTAs and DTLs are reported in the Financial Statements?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4302
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Immovable property collateral under the Standardised approach & Credit risk mitigation principles

Do the Article 193 ‘Principles for recognising the effect of credit risk mitigation techniques’ and Article 194 ‘Principles governing the eligibility of credit risk mitigation techniques’ apply to immovable property collateral under the Standardised approach?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_4300
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Clarification on application of incurred CVA to the Leverage Ratio Exposure calculation

Can incurred CVA, which is recognised as an incurred write-down in the Balance sheet, be used in the calculation of the Leverage Ratio Exposure for derivatives contracts?

  • 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: 2017_3628
  • Topic: Leverage ratio
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Clarification of Z02.00, row 0200 (DGS liabilities)

What is expected to be reported in Z 02.00, row 0200 (DGS liabilities) as the instructions only refer to Article 44 (2) point g (iv) of Directive 2014/59/EU and liabilities to deposit guarantee schemes arising from contributions due in accordance with Directive 2014/49/EU?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on the provision of information for the purpose of resolution plans
  • ID: 2018_4213
  • Topic: BRRD Reporting
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Treatment of negative contribution base while calculating contributions to resolution financing arrangements

Due to specificities of the business model of some institutions, exclusions according to Article 5(1) of the Delegated Regulation (EU) 2015/63 may result in negative amount of total liabilities (excluding own funds) less covered deposits (contribution base according to Article 103(2) BRRD).Could you confirm that the approach in which the contribution base is floored to zero is correct in such cases?

  • 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: 2018_4002
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Requirements in Commission Delegated Regulation (EU) 2016/1712

- Do the requirements in Commission Delegated Regulation (EU) 2016/1712 only apply to financial contracts resulting in a liability which could be subject to bail-in under resolution, rather than all assets and liabilities?- Are there any expectations on the format/method of submission for the information if/when requested (i.e. excel, CSV, other)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2018_3928
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 15/11/2019

Minority interest, AT1 and T2 instruments qualifying for inclusion in consolidated own funds

How should the calculation in Article 85(1) CRR be performed “on a sub-consolidated basis for each subsidiary” as required by Article 85(2) CRR, where no sub-consolidation or sub-consolidated own funds requirements apply to an institution?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2017_3567
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 08/11/2019

Transaction Risk Analysis (TRA) exemption – Time period for calculation of initial fraud rate

What is the relevant time period to use when calculating the initial fraud rate for use when the Strong Customer Authentication (SCA) comes into force?

  • Legal act: Directive 2015/2366/EU (PSD2)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) 2018/389 - RTS on strong customer authentication and secure communication
  • ID: 2018_4044
  • Topic: Strong customer authentication and common and secure communication (incl. access)
  • Date of submission:
  • Published as final Q&A: 08/11/2019