Question ID
2018_3793
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - FINREP (incl. FB&NPE)
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Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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
Annex V part 2.41 (i)
Type of submitter
Credit institution
Subject matter
Clarification “Other collateralized loans” template F 05.01
Question

Should “Finance leases” and “Reverse repurchase loans” be excluded from the specification in row 100: “of which: other collateralized loans” in template F 05.01?

Background on the question

In Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) Annex V part 2.41 (i), valid until Q4 2017 reporting, the following guidance is given: “Other collateralized loans” include loans formally backed by collateral, independently of their loan/collateral ratio (so-called “loan-to-value”), other than “Loans collateralised by immovable property”, “Finance leases” and “Reverse repurchase loans”. This collateral includes pledges of securities, cash, and other collateral. The guidance in the IFRS 9 ‘Supervisory Reporting ITS’ is amended and does not specifically mention the exception of the “Finance leases” and “Reverse repurchase loans”. The IFRS 9 ‘Supervisory Reporting ITS’ Annex V. states in part 2.86 (a):‘Other collateralized loans’ shall include loans and advances formally secured by collateral, independently of their loan/collateral ratio (commonly referred to as ‘loan-to-value’) and the legal form of the collateral, other than ‘Loans collateralized by immovable property’. This collateral shall include pledges of securities, cash, and other collateral independently from the legal form of the collateral.

 

Submission date
Final publishing date
Final answer

According to paragraph 86(b) of Part 2 of Annex V to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), applicable to template F 05.01 of Annexes III and IV to the ITS on Supervisory Reporting, ‘other collateralized loans’ shall include loans and advances formally secured by collateral, independently of their loan/collateral ratio (commonly referred to as loan-to-value) and the legal form of the collateral, other than ‘Loans collateralized by immovable property’. This collateral shall include pledges of securities, cash and other collateral independently from the legal form of the collateral.

Consequently, “finance leases” and “reverse repurchase loans” shall be included in the definition of “other collateralised loans”. This is also consistency with the information provided in the template F 13.01 of Annex III and IV, where “other collateralised loans” are reported in columns broken-down by type of collateral received. 

 

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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