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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

Correct application of credit conversion factors in relation to credit substitutes and shipping guarantees

According to Annex I Classification of off-balance sheet items:a) Paragraph 1. (a) guarantees having the character of credit substitutes are guarantees for the good payment of credit facilities. These guarantees bear full risk, therefore CCF of 100% is applied as stated in Article 111. Could you provide more examples or a definition of credit substitutes?b) Paragraph 2. (b). (i) shipping guarantees: could guarantees for payment of delivered goods and services be considered shipping guarantees?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2543
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 09/12/2016

EBA Benchmarking 2016

In template C 103.00 ”Details on exposures in High Default Portfolio”, column 230 and 240, it is demanded the RWA* and RWA**. For those purposes, we need to calculate a PD* and PD**. Our question is about how PD* must be estimated. In this sense we have read the specifications and we need more clarifications or be sure our understanding is correct.

  • Legal act: Directive 2013/36/EU (CRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Draft ITS on Supervisory Reporting of Institutions (for benchmarking the internal approaches)
  • ID: 2016_2782
  • Topic: Supervisory reporting - Supervisory Benchmarking
  • Date of submission:
  • Published as final Q&A: 02/12/2016

Exemption from bail-in of emergency liquidity assistance provided by the central bank

Does the BRRD provide for any exceptions from bail-in as regards liabilities from emergency liquidity assistance provided by the central bank before the institution is in resolution?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2435
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 02/12/2016

Clarification on the applicable framework for public recapitalisation

We would like clarification on the applicable framework for public recapitalisation which is not classified as precautionary recapitalisation accordingly to Article 32(4)(d)(iii) of Directive 2014/59/EU (BRRD), in particular i) its relation to Government Financial Stabilisation Tools, and ii) differences in rules applicable in 2015 and from 2016 onwards.

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2178
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 02/12/2016

Coverage of further losses following bail-in

Can it be clarified as to whether in cases where there has been bail-in of at least 8% of the total liabilities, and on all liabilities other than liabilities excluded by Article 44(2) the settlement financing scheme (or alternative financing sources in accordance with Article 44(7)) cannot make a contribution if the liabilities has not been excluded under Article 44(3)? This also seems to follow from Article 101(1)(c).How are further losses covered? The guarantee scheme can only provide limited funds in accordance with Article 109(5).

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2172
  • Topic: Resolution objectives and triggers
  • Date of submission:
  • Published as final Q&A: 02/12/2016

Exclusion of corporate deposits

Can corporate deposits be excluded from bail-in in the context of Article 44 of the BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2953
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 25/11/2016

FINREP reporting requirements

If an institution is currently not within the scope of FINREP (i.e. not subject to article 4 of Regulation (EC) No. 1606/2002), but may fall within the scope of FINREP in the future, what would be the institution's first reporting reference date for FINREP?

  • 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_1128
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Exclusion of securities guaranteed by an independent on-demand guarantee from bail-in

Can securities guaranteed by an independent on-demand guarantee be considered as "otherwise guaranteed" claims mentioned in Recital (70) of Directive 2014/59/EU (BRRD) and as such be excluded from bail-in?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2951
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 25/11/2016

FINREP template F 40.01 – Group Structure Listing - Entity by Entity

Regarding the definition 124(p)“Acquisition cost” means the amount paid by the investors.”:a)where the company has changed ownership but is still within the group, does the amount paid refer to the initial amount paid on entry into the Group or to the amount paid by the current investor.b)where a subsidiary has not been purchased but rather has been set up by the investor does the amount paid refer to the initial share capital invested ( which can often just be a nominal amount eg: EUR3)

  • 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_1222
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Additional implementation to Article 27(1)(d)

What additional implementation to that required for Article 27(1)(d) of Directive 2014/59/EU (BRRD) is expected in the light of Article 28, and if so, how can any difference be implemented in compatibly with the European Convention on Human Rights?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2517
  • Topic: Early intervention
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Entity in resolution and purchaser not registered in the same Member State

Article 38 (7) of Directive 2014/59/EU (BRRD) says that a purchaser will have the appropriate authorisation to carry out the business it acquires. In case the entity in resolution and the purchaser are not registered in the same Member State, which authority is competent to give this authorisation: the authority in the member state of the entity in resolution, or the authority in the member state of the purchaser?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2359
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Preparation and approval of recovery plans of institutions which are members of an IPS

Are institutions which are members of an IPS exempted from drafting their own recovery plans in case they are granted a waiver from “the requirements of Section 2”?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2080
  • Topic: Simplified obligations
  • Date of submission:
  • Published as final Q&A: 25/11/2016

FINREP Template 13.2 and 13.3

The difference between the templates 13.2 and 13.3 and the purpose of template 13.3 is not clear. Can you please explain the following questions.1.)Template 13.2 “Collateral obtained by taking possession during the period [held at the reporting date]”: We have understood that “during the period” means Information about obtained Collateral year-to-date (ytd). That means from 1. January to Reference date. Is this correct?2.)Template 13.3 “Collateral obtained by taking possession [tangible assets] accumulated”: We have understood that “accumulated” means life-to-date (ltd). Is this correct?3.)The heading of Template 13.3 is “Collateral obtained by taking possession [tangible assets] accumulated”. In de ITS part 2.84 you explain, that this template excluding those classified as “Property, plant and equipment”. For our understanding the definition of tangible assets are the same definition of Property, plant and equipment. Is the heading incorrect? If not, can you please confirm the purpose of this 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_1094
  • Topic: Supervisory reporting - FINREP (incl. FB&NPE)
  • Date of submission:
  • Published as final Q&A: 25/11/2016

Write down of capital in BRRD and CRR / CRDIV

What is the relationship between the powers of the resolution authority following the BRRD to write down capital and the provisions in CRR / CRD IV allowing the competent authority to write down capital?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2955
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Interpretation of consolidated prudential requirements

How should the reference to "consolidated prudential requirements" in Article 59(6) be interpreted?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2954
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Exclusion of “financial services” from the exemption from bail-in

Would the Commission agree that domestic legislation which excludes "financial services" from the exemption from bail-in retains this prerogative when implementing the BRRD?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2434
  • Topic: Resolution tools and powers
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Netting set treatment for trades with Specific Wrong Way Risk

For a netting set with three OTC derivative trades (trades A, B and C), Trade A is identified existing Specific Wrong-Way Risk. The underlying collateral was assigned in trade level, namely collateral 1, 2 and 3 allocated to trade A, B and C respectively. When removing trade A from the netting set and treated as a separate netting set, shall the underlying collateral be considered?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2590
  • Topic: Market risk
  • Date of submission:
  • Published as final Q&A: 18/11/2016

PONV write-down leaving an institution failing or likely to fail

Do capital instruments and liabilities eligible for internal MREL (minimum requirement for own funds and eligible liabilities) always have to be written down or converted through the application of the point of non-viability (PONV) write-down prior to bail-in?

  • Legal act: Directive 2014/59/EU (BRRD)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2956
  • Topic: Write-down and conversion of capital instruments
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Treatment of retail exposures secured by property under IRB

How should institutions treat a retail exposure for an SME that has a minor property collateral (and thus it is partly secured by immovable property) but the purpose of this loan is not property/mortgage finance? Are the correlation coefficient prescribed in Article 154(3) and the minimum LGD requirement in Article 164(4) applicable for the full exposure?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2599
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 18/11/2016