Other Asset

Article 429(5)(a) of Regulation (EU) No 575/2013 (CRR), as amended by the Delegated Regulation (EU)2015/62 (DR), specifies that the leverage ratio exposure value of assets, including SFTs, should be calculated in accordance with the first sentence of Article 111(1) CRR, pursuant to which the exposure value of an asset item shall be its accounting value remaining after specific credit risk adjustments, additional value adjustments in accordance with Articles 34 and 110 and other own funds reductions related to the asset item have been applied. Art. 195 CRR also clarifies that “an institutions may use on-balance sheet netting of mutual claims between itself and its counterparty as an eligible form of credit risk mitigation” (CRM), thus including the on-balance sheet netting of mutual claims among the forms of CRM. Given that the instructions for the position “Other assets” in Annex XI of the Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) also refer specifically to the principles set out in Article 429(5) of the CRR, which allow no netting nor application of CRM, offsetting relating to tax assets / liabilities should be reversed.