The European Banking Authority (EBA) has updated its Single Rulebook Q&A on the Capital Requirements Directive IV and the Capital Requirements Regulation and the related technical standards.

Questions and answers have now been added on the following issues:

  • determination of the exposure class for exchange-traded option, warrants and futures;
  • definition of liquidity facility;
  • derogation from the application of liquidity requirements on an individual basis;
  • stand-by credit facilities as liquid assets;
  • the calculation of outstanding Tier 2 capital, following pre-payment amounts that have been phased out;
  • own funds: value adjustments for prudent valuation (additional value adjustments); and
  • capital instruments that were issued with an incentive to redeem but no longer contain one.

View EBA Single Rulebook, 20 June 2014