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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.

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List of Q&A's

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Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 680/2014 - ITS on supervisory reporting of institutions (repealed)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

Assigning Specific Credit Risk Adjustments for a group of exposures to the exposures within the group

Following question 2013_499, could you confirm that this implies that the collective provisions allocated to specific portfolios for accounting purposes (FINREP) will agree at aggregate level with the amounts booked in the financial statements but the allocation for RWA to single exposures will differ from the allocation for accounting purposes to single exposures and thus a single exposure will show a different collective provision for accounting purposes (FINREP) than that for RWA?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Regulation (EU) No 183/2014 - RTS for the calculation of specific and general credit risk adjustments
  • ID: 2016_2574
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Application of Article 215(2)(b) of the CRR

Can the competent authorities be satisfied that the effects of a guarantee (which covers losses resulting from the non-payment of interest and other types of payments which the borrower is obliged to make) justify the treatment of eligible unfunded credit protection when the time of payment such guarantee is indeterminate? Are there other considerations that the competent authorities should take into account to be satisfied with the effects of the guarantee to justify such treatment, in addition to those listed in article 213 and 215(1)(b) and (c) of CRR?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2306
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 18/11/2016

Applying a currency mismatch haircut to OTC derivatives in a netting pool which are in a currency different from settlement currency

For OTC derivative transactions covered by master netting agreements, if the exposure (derivative) currency is different from the settlement currency, should the exposure amount be increased by the currency mismatch haircut?While calculating the replacement cost of the derivatives, should the exposure amount be increased by the currency mismatch haircut?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2015_2394
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Classifications of loans to SPVs as to SME

How should the repayment of loans to SPV's (classified as SME) be considered for the purpose of Article 501 of Regulation (EU) No 575/2013 (CRR)? Should the original exposure amount be taken into account? 

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Not applicable
  • ID: 2016_2711
  • Topic: Credit risk
  • Date of submission:
  • Published as final Q&A: 11/11/2016

Eligible collateral in a central bank

Must liquid assets be eligible in a central bank when LCR is calculated?

  • Legal act: Regulation (EU) No 575/2013 (CRR)
  • COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
  • ID: 2015_2459
  • Topic: Liquidity risk
  • Date of submission:
  • Published as final Q&A: 11/11/2016