EBA · 2013_448 Rejected question

Non material losses

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
472, para. 3
Topic
Own funds
Submitted by
Other
Submitted
2013-10-31
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Question

The definition of what is a non-material loss is not defined within Article 472 of Regulation (EU) No 575/2013 (CRR); is it possible to clarify what ‘material’ / 'non-material' is? Can you advise how- if applicable- such non-material losses are treated?

Background

Article 472 (‘Items not deducted from CET1’) refers to both residual amounts of current year losses that are material and which are deducted from CET1, and those that are not material and which are not deducted. It is unclear how 'material' is defined in this context, and furthermore it is not clear whether those non-material losses which are not deducted from common equity tier 1 warrant further treatment elsewhere.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2013_448

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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