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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

Interaction of the EBA Opinion on the MDA and Article 92 Regulation (EU) No 575/2013 (CRR)

Where a bank does not have sufficient subordinated debt in issue to fulfil its minimum 1.5% Tier 1 and 2.0% Tier 2 requirement, it may need to use a higher quality form of capital to fulfil these requirements.To the extent a bank has to assign CET1 to fulfil shortfalls in its minimum Tier 1 and Tier 2 requirements, can this CET1 also be applied to meet Pillar 2 and Combined Buffer requirements for the purpose of calculating the MDA? 

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2552
  • Topic: Other issues
  • Date of submission:
  • Published as final Q&A: 26/08/2016

SREP and combined buffers

Article 104(1)(a) of the Directive 2013/36/EU (CRD) states that competent authorities have the power to require institutions to hold own funds in excess of the requirements set out in "Chapter 4 and Regulation 575/2013", i.e. in excess of the minimum capital requirements set in the CRR plus the capital buffers. Moreover, Articles 129(5), 130(5) and 131(13) of the CRD prevent the use of CET1 capital required per Article 104 to meet any of the buffer CET1 requirements.1) When the competent authorities give to an institution an individualised CET1 capital requirement (so-called SREP requirements or Pillar 1 + Pillar 2 requirements), does this include any potential combined buffer requirements, since any additional requirement per Article 104 should come on top of the requirements imposed by Chapter 4 of the CRD and by the CRR ?2) In particular, if a competent authority changes the systemic risk buffer (SRB) or the other systemically important institutions buffer (O-SIIB) applicable to a bank would this not increase the total Pillar 2 + Pillar 1 requirement of the bank, unless the new Pillar 1 requirement went above the old Pillar 1 + Pillar 2 requirement or unless the competent authority also changed the total SREP requirement of the bank?

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2302
  • Topic: Supervisory review and evaluation (SREP) and Pillar 2
  • Date of submission:
  • Published as final Q&A: 26/08/2016

Is collateral from REPO and SBL transactions taken into consideration for the BRRD base calculation?

Could liabilities arising from repos and securities lending and borrowing transactions be netted with the collateral posted what would result in a BRRD base decrease?

  • 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: 2016_2765
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 12/08/2016

Application of the even deduction rule in case of intragroup transactions booked - by institutions which are parties to the contract - in different amounts

How to apply the even deduction rule stipulated in the Article 5(2) of the Commission Delegated Regulation (EU) 2015/63 and further clarified by the EBA Q&A 2015_1893 (Treatment of specific liabilities - even deduction) in cases where each party books the transaction in different amount?

  • 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_2283
  • Topic: Resolution financing arrangements
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Transfer of covered deposits as a substitute to reimbursement

Can resolution authorities take resolution action, e.g. a transfer of the deposit book, restoring access to covered deposits, even after such access has been interrupted and the conditions laid down in Article 2(1)(8) of Directive 2014/49/EU (DGSD) are met?In such a case, what is the effect of such action on the obligation of the DGS under Article 8(1) DGSD (repayment obligation) and 109(1) of Directive 2014/59/EU (BRRD) (contribution in resolution)?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2123
  • Topic: Interactions with the DGS and the BRRD
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Calculation of MREL

For the purpose of calculating the total liabilities, including own funds of the resolution entity, as provided under Article 45b(4), (5) and (7) BRRD, should we account for financial instruments that qualify as both own funds and liabilities (such as subordinated debt) in both categories? If so, would this not amount to a double counting of the same financial instruments?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2120
  • Topic: MREL
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Definition of client funds

Is it sufficient to refer to "client assets" in the list of resolution objectives, if the definition of "client assets" at a national level includes "client money"?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2111
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 05/08/2016

Reporting of Regulatory High Risk Items in default in C 09.01

Please can you advise how Regulatory High Risk exposures which are in default should be reported in C 09.01?

  • 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_1646
  • Topic: Supervisory reporting - COREP (incl. IP Losses)
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Should National GAAP reporters fill in template F 18.00 and F 19.00 on non-preforming and forborne exposures?

Should National GAAP reporters fill in template F 18.00 and F 19.00 on non-preforming and forborne exposures?

  • 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_2415
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 29/07/2016

The 3 largest material currencies in the structural currency mismatches tables (P 02.06) of funding plan report

According to the instructions for P 02.06, the table provides a breakdown of the 3 largest material currencies. The currency is material if it accounts for more than 5% of total liabilities, as per Art 415 (2) lit. b CRR. (We think the correct reference here is Art 415 (2) lit. a CRR.)According to Art. 415 (2) lit. a) CRR,: an institution shall report separately to the competent authorities of the home Member State the items referred to in paragraph 1 in the currency below when it has:(a) aggregate liabilities in a currency different from the reporting currency under paragraph 1 amounting to or exceeding 5 % of the institution's or the single liquidity subgroup's total liabilitiesDoes that mean that the reporting currency has to be reported?If yes, how shall the reporting currency – take the Hungarian forint as example - be reported in the structural currency mismatches tables of funding plan report?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_2329
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Clarification on Funding Plans significant currencies criteria

What rule should be followed given the discrepancy between what the EBA Guideline establishes and the criteria given by the template GL on FP?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_2388
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Design of Templates for 3-year horizon

The guideline provides Templates for 3-year horizon with 5 columns:Actual Current Position (e.g. end 2013)Planned 6 month Position (e.g. H1 2014)Planned Year 1 Position (e.g. end 2014)Planned Year 2 Position (e.g. end 2015)Planned Year 3 Position (e.g. end 2016)For the year 2015 institutions report their funding plans with the reference date (Actual Current Position) 30 June 2015.For subsequent years institutions report their funding plans with the reference date 31 December of previous year. Our understanding is that for the year 2016 FP templates should be designed as follows:Actual Current Position (end 2015)Planned Year 1 Position (end 2016)Planned Year 2 Position(end 2017)Planned Year 3 Position (end 2018)We are not sure if our understanding of FP templates for the 2016 and further (without Planned 6 month Position (H1 2016) is correct?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_2127
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Funding plans projection horizon for the June 2015 reference date

Can you please clarify whether the projection horizon for the June 2015 reference date relates to (a) Dec 2015, June 2016, June 2017 and June 2018 for each of columns 020 to 050 respectively, or (b)Dec 2015, Dec 2015, Dec 2016 and Dec 2017 for each of columns 020 to 050 respectively

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_2048
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Funding Plans : Table 2C (P 02.06) - Gradation of currencies in the taxonomy

In Table 2C (P 02.06), there is a notion of gradation on currencies' breakdown (1st, 2nd, and 3rd Largest material currency). But for now, the taxonomy don't handle this gradation. Does that mean that we can report the three most significant currencies regardless of their rank of importance?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2014_1521
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Loans collateralized by immovable property in F 05.00 and F 13.01

Do loans collateralized by immovable property in template F 05.00 contain only residential and commercial immovable property, like in F 13.01, or are they open to other collateralized immovable property (those which do not meet the definition of residential and commercial provided by CRR)? If the former, are those loans collateralized by other immovable property reported as other loans collateralized?

  • 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_1108
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 29/07/2016

GL on funding plans: treatment of loans/deposits on demand across different items in Table 1a - Assets (P 01.01)

How should "Other demand deposit (with credit institutions)" be treated across different items of the Table 1A - Assets (P 01.01) in funding plans in order to avoid double counting? Furthermore, is it relevant to exclude loans on demand from the household sector?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: EBA/GL/2014/04 - Guidelines on harmonised definitions and templates for funding plans of credit institutions - repealed by EBA/GL/2019/05
  • ID: 2015_1936
  • Topic: Supervisory reporting - Funding Plans
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Entry criteria NPE for forborne exposures under probation

Entry criteria for NPE according to paragraph 179 are stricter than exit criteria according to paragraph 156. This can lead to an infinite circle of reclassifications.

  • 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_1014
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 29/07/2016

Conditions for Resolution

At what point of time during a resolution procedure must the conditions for resolution pursuant to Article 32(1) BRRD be met? Is it necessary to only positively assess them at the initiation of the resolution process, i.e. at the moment the resolution authority initiates a resolution procedure?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2428
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 22/07/2016

Risk weight for exposures to central-government-risk Public Sector Entities (PSEs) denominated and funded in domestic currency

May exposures to PSEs established in a Member State, whose level of risk in the opinion of the competent authority of the Member State in question does not differ from the level of risk of the central government, be assigned a risk weight of 0% in accordance with Article 114(4) of CRR if they are denominated and funded in domestic currency?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2484
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 15/07/2016

Definition of "institution" for large exposure purposes

Should EC implementing decision on the equivalence of the supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures according to Regulation (EC) No. 575/2013 be used to determine equivalence for LE purposes?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2014_1692
  • Topic: Large exposures
  • Date of submission:
  • Published as final Q&A: 15/07/2016