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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

Grandfathering of own funds instruments

Is buying back parts of an issued Tier 1 instrument that do not meet the requirements of Article 53 in Regulation (EU) No 575/2013 (CRR) but are eligible for grandfathering possible, or would it make the remaining outstanding amount disqualified for grandfathering? This question is similar to Question 2013_18, but keeps the contract of the instrument unchanged.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1253
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Retail Depoists - EUR1 million limit

With reference to the definition of "Retail Deposits", does the EUR1 million limit apply to 'natural persons'? Or does it solely apply to SMEs and companies eligible for the treatments set out in Article 153(4) 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_1062
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Inclusion of derivatives in the product list mentioned in Article 378

Are derivatives also to be included in the product list mentioned in Article 378?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_851
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Types of collateral to be taken into account in the calculation of hypothetical capital by a CCP in accordance with Article 223(5) of CRR

When a CCP calculates the KCCP in accordance with the formula set up in the new Article 50a of EMIR (introduced by Article 520 of CRR), what kind of collateral should be taken into account in the fully adjusted value of the exposure (E*), calculated according to Article 223(5) of CRR and substituted for EBRMi?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_657
  • Topic: Market infrastructures
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Administrative penalties for legal persons

Can Member States in their national law provide an option to impose higher penalties for legal persons?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_410
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Application of Article 52 of Regulation (EU) No 575/2013 (CRR) at consolidated level

What is the treatment at consolidated level of AT1 instruments issued by a third country subsidiary where the 5.125% CET1 conversion/write down trigger that refers only to the subsidiary CET1 ratio? To the effect of this calculation, which definition should be used, the one in the home country law or the one of the host country law?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_385
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Definition of a "material penalty" and "individually justified circumstances"

What is the definition of a "material penalty" and "individually justified circumstances"? Who will be the final arbiter in determining the “materiality” of the penalty for early withdrawal within 30 days?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_301
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Interpretation of Article 24 of the CRR regarding own funds requirement at solo level

Can the national discretion in Article 24(2) of Regulation (EU) No 575/2013 be applied at solo level, for prudential purposes in spite of the fact that institutions are not allowed according to national legislation to apply IFRS at solo level for general financial reporting purposes?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_110
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 24/10/2014

Scope of application of FINREP

Our question concerns Article 99(4) of Regulation (EU) No. 575/2013 (CRR). Does it empower national competent authorities to determine, in respect of smaller non-systemic institutions that for whatever reason use international accounting standards/ IFRS (and thereby fall under paragraph (2)), that such institutions need not be required to report financial information as envisaged in Article 99 (2)? This would be on the grounds that such information is not necessary either to obtain (i) a comprehensive view of the [individual] risk profile of such institutions; or to obtain (ii) a view of the systemic risks posed by such institutions [collectively] to the financial sector or the real economy.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_433
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 17/10/2014

Definition of Investments in Private Equity

Do investments in private equity referred to under Article 128(2)(c) of Regulation (EU) No. 575/2013 only relate to investments in CIU?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_374
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 17/10/2014

Scope of application of the new FINREP framework

Are the credit institutions that should not prepare consolidated accounts according to the prudential rules under the scope of the new FINREP framework?

  • 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: 2013_196
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 10/10/2014

Risk Weights for International Organisations

Could you please advise what risk weight/treatments should be applied to International Organisations that are not included in Article 118 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_968
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 10/10/2014

Scope of Waiver for Amended Solo Consolidation and Impact on Supervisory Reporting

Article 9 of Regulation (EU) No 575/2013 (CRR) for the ‘Individual consolidation method’ refers directly to Article 6(1) in terms of the discretion for competent authorities to allow institutions to include certain non-authorised subsidiaries in the scope of their individual returns. In this regard, can we confirm if the 'amended solo' waiver is also available for the Leverage Ratio given that it does not fall under the scope of Article 6(1) i.e. there is no reference to Part Seven of the CRR?

  • 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_752
  • Topic: Leverage ratio
  • Date of submission:
  • Published as final Q&A: 10/10/2014

Maturity matching

Articles 45(a), 59(a), 69(a) of Regulation (EU) No 575/2013 (CRR) each include a condition that “the maturity of the short position matches the maturity of the long position or has a residual maturity of at least one year”, in order for the short position to be recognized for the calculation of the net long position. Please confirm that maturities are deemed to match for the purposes of these provisions where the maturity of the short position is greater than the maturity of the long position. Where the maturity of the short is greater than the maturity of the long the institution will only ever be left with a net short position (economically a forward starting short), all things being equal, and should not therefore have to take a deduction.

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_252
  • Topic: Own funds
  • Date of submission:
  • Published as final Q&A: 10/10/2014

Definition of independent valuer referred to in Article 229(1) of Regulation (EU) No 575/2013 (CRR)

1. What is a definition of independent valuer referred to in Article 229(1)? 2. Whether the definition of independent valuer referred to in Article 229(1) is specified in Article 208(3)(b)? 3. Whether independent valuer is defined as a person who possesses the necessary qualifications, ability and experience to execute a valuation and who is independent from the credit decision process? 4. Whether the Regulation (EU) No 575/2013 (CRR) imposes additional obligations than those indicated in Article 208(3)(b) on a person who execute valuation as independent valuer? 5. Whether an independent valuer referred to in Article 229(1) may be an employee of the bank? 6. Whether CRR excludes the possibility of valuing the property for the purposes of Article 229(1) by employees of the bank?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1056
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 03/10/2014

Treatment of recognised exchanges (non-third country vs. third country)

Are exchanges, explicitly exchanges according to Article 4(1)(72) of Regulation (EU) No 575/2013 (CRR), also treated like institutions?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_677
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 03/10/2014

Substitution of ratings for CRMT purposes

For the instruments listed in Article 197 of Regulation (EU) No. 575/2013 (CRR), is it possible to use the issuer rating in order to derive eligibility (and haircuts) where no specific instrument rating exists (“substitution”)?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_679
  • Topic: External Credit Assessment Institutions (ECAI)
  • Date of submission:
  • Published as final Q&A: 03/10/2014

Relevance of Issuers Rating for Article 120 of Regulation (EU) No 575/2013 (CRR)

Does Article 120 of Regulation (EU) No 575/2013 (CRR) refer to claims only, where there is an issue-related rating existing, or does it also cover claims, where no rating exists for the issue, but for the issuer?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2013_652
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 03/10/2014

Content of “accumulated changes in fair value due to credit risk” in template F 16.05

Column 020 of template F 16.05 is labeled as “Accumulated changes in fair value due to credit risk”, whereas the respective instructions (paragraph 100 of part 2 of Annex V of the ITS on supervisory reporting) reads “Institutions shall report the net realised and unrealised and the amount of change in fair value in the period due to changes in the credit risk (own credit risk of the borrower or issuer).”. We would like to get confirmation that the instructions shall be followed and that the use of the word “accumulated” in the second column of F 16.05 is a typo.

  • 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_1109
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 03/10/2014

Annex II and VIII of the ITS on supervisory reporting under the CRR

According to the Article 395 paragraph (5) point a) of CRR the limit to large exposure may be exceeded for the exposures on the institution's trading book – among others - if the exposures on the non-trading book do not exceed the limit laid down in paragraph (1). How shall the excess of limit to the large exposure on the non-trading book after CRM be reported in the CA2 template?

  • 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_1085
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 03/10/2014