The European Banking Authority (EBA) has updated its Q&As on the single rulebook, publishing 11 new answers to questions. The Q&As relate to the CRD IV package of reforms: the CRD IV Directive, the Capital Requirements Regulation and the related technical standards and guidelines developed by the EBA. The 11 updated Q&As cover various issues including: supervisory reporting and minimum reserve requirements.
The topics for the new answers are:
- supervisory reporting of bonds issued by promotional banks;
- mark to market method, application of the mark to market reset 2014;
- residual maturity of exposures with an undefined maturity;
- regulatory add-on % for inflation swaps;
- effect on the capital requirement of a guarantee where the right to call is linked to default versus another where it is linked to realised loss;
- own funds, prudential filters;
- treatment of SME-supporting factor in the case of secured exposures;
- tier 2 instruments;
- eligibility of capital instruments for classification as Common Equity Tier 1 (CET1) instruments when the instruments are supplemented by a contractual obligation of the majority-holder of those instruments to pay compensation to the minority shareholders even in loss years;
- exemption from deduction of equity holdings in an insurance company from CET1; and
- minimum reserve requirement.
View Single Rulebook Q&A, 4 July 2014
View Question ID: 2013_628: Supervisory reporting of bonds issued by promotional banks, 4 July 2014
View Question ID: 2014_892: Mark to market method, application of the mark to market reset, 4 July 2014
View Question ID: 2014_883: Residual maturity of exposures with an undefined maturity, 4 July 2014
View Question ID: 2014_841: Regulatory add-on % for inflations swaps, 4 July 2014
View Question ID: 2014_720: Own funds, prudential filters, 4 July 2014
View Question ID: 2013_565: Treatment of SME-supporting factor in the case of secured exposures, 4 July 2014
View Question ID: 2013_544: Tier 2 instruments, 4 July 2014
View Question ID: 2013_502: Exemption from deduction of equity holdings in an insurance company from CET1, 4 July 2014
View Question ID: 2013_293: Minimum reserve requirement, 4 July 2014