Deduction of IRB Shortfall to Own Funds

Article 472 (6) of Regulation (EU) 575/2013 (CRR) requires the deduction half from Tier 1 items and half from Tier 2 items of the residual amount of IRB shortfall of provisions to expected losses which is not deducted from CET1 according to the applicable percentage. This transitional provision is reflected mainly in template C 05.01 of Annex I of Regulation (EU) 680/2014 (ITS on Reporting). The residual amount should therefore be reported half in {C 05.01, r180, c020} and half in {C 05.01, r180, c030}. Aggregated with other transitional adjustments in C 05.01, the residual amounts will appear in {C 01.00, r730, c010} and {C 01.00, r960, c010}. According to paragraph 13 a) of Annex II of ITS on Reporting, the position {C 01.00, r380, c010} includes the amount according to Art. 36 (1) d) CRR, i.e. the amount fully phased in. The adjustment according to Art. 469 (1) a) CRR (“applicable percentage”) is reported with a positive amount in {C 05.01, r180, c010}. Aggregated with other transitional adjustments in C 05.01, the adjustment due to the applicable percentage will appear in {C 01.00, r520, c010}.