EBA · 2014_718 Final Q&A

How to report reverse repo operations in Part A template AE-ASS (C 31.01) and/or AE-COLL (C 32.02)

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
100, para. 0
Topic
Supervisory reporting - Asset Encumbrance
Submitted by
Credit institution
Submitted
2014-01-10
Answered
2014-04-30
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

The instructions say that the all the assets of the reporting institution must be reported in the template AE-ASS and it corresponds to the total assets registered in the balance sheet. At the same time, they also specify that collateral which has been received by the reporting institution through a reverse repo, should be reported in the template AE-COL. A reverse repo is registered as a cash loan in the balance sheet. How should a reverse repo be reported in the Part A of the reporting: as a loan in the template AE-ASS (such as its accounting treatment) or as collateral received depending on the breakdown (eg. equity, debt security…) in the template AE-COL? Or should it be reported in the 2 templates AE-ASS and AE-COL? Please note that if a reverse repo should be reported exclusively in the template AE-COL, the row 010 of the template AE-ASS will not correspond to the total assets registered in the balance sheet (i.e. the reverse repo is reported as a loan in the balance sheet)

Background

The instructions say that the all the assets of the reporting institution must be reported in the template AE-ASS and it corresponds to the total assets registered in the balance sheet. At the same time, they also specify that collateral which has been received by the reporting institution through a reverse repo, should be reported in the template AE-COL. A reverse repo is registered as a cash loan in the balance sheet. How should a reverse repo be reported in the Part A of the reporting: as a loan in the template AE-ASS (such as its accounting treatment) or as collateral received depending on the breakdown (eg. equity, debt security…) in the template AE-COL? Or should it be reported in the 2 templates AE-ASS and AE-COL? Please note that if a reverse repo should be reported exclusively in the template AE-COL, the row 010 of the template AE-ASS will not correspond to the total assets registered in the balance sheet (i.e. the reverse repo is reported as a loan in the balance sheet)

Answer

The amount of the finance granted in a 'reverse repo' should be reported in C 32.01 (AE-ASS template) as a non-encumbered loan. The collateral received in this 'reverse repo' transaction should be reported in C 32.02 (AE-COLL template). When it is reused, the collateral received in this transaction should be reclassified as encumbered on template AE-COLL. The encumbrance of the collateral received in a 'reverse repo' transaction do not change the classification of the loan (to which is associated) as non-encumbered in template AE-ASS. DISCLAIMER: The present Q&A on Supervisory reporting is provisional. It will be reviewed after the respective Implementing Regulation is in and published in the Official Journal, which may differ from the text of the relevant draft ITS to which  it relates.

Original source: European Banking Authority, Q&A ID 2014_718

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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