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_803: 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, 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_543: 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, 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