Question ID
2017_3343
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - COREP (incl. IP Losses)
Article
99
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)
Article/Paragraph
Annexes I and II, C 01.00, C 09.01
Type of submitter
Competent authority
Subject matter
Reporting of credit risk adjustments according to Article 110 of CRR
Question
  1. In relation to SA General credit risk adjustments, as per template C 01.00, row 920, column 010, is an institution also required to report the respective values in column 050 in template C 09.01?
  2. Furthermore, should this credit risk adjustment apply for a bank and the bank is not including it in its Tier 2 capital, is the NCA obliged to inform the bank accordingly?
Background on the question
  1. No instructions are given in Annex II - Reporting on own funds and own funds requirements in this regard. We currently have institutions which are reporting in row 920, column 010 of C 01.00 without reporting in C 09.01 and there are others who report in both templates.
  2. Some institutions are not reporting in C 01.00 but according to the RTS on the calculation of credit risk adjustments, such adjustment does apply.
Submission date
Final publishing date
Final answer
  1. General credit risk adjustments (GCRAs) shall be reported both in templates C 01.00, row 920, column 010 and C 09.01, column 050 of Annex I to Regulation (EU) 680/2014 (ITS on Supervisory Reporting). Column 050 of template C 09.01 shall reflect the amount of GCRAs before the application of the cap of Article 62(c) of Regulation (EU) No 575/2013 (CRR), i.e. the uncapped amount.
  2. It is the responsibility of the reporting entity to determine its Tier 2 capital, under control and review of the National competent authority. The reporting entity might choose not to recognize their GCRAs in Tier 2 as this constitutes a stricter prudential measure according to Article 3 CRR.
Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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