Given the legal reference reported in the Annex IV, a clarification about the annual default rate computation is required

The reported default rate in c190 of Template C 103.00 of Annex IV of Draft ITS on Supervisory Reporting for Institutions for benchmarking the internal approaches (ITS on benchmarking) is the rate observed at the end of the year for the past year. The default rate is defined as the observed new defaults for the last year (c040 of template C 09.02 of Annex I of Regulation (EU) No 680/2014 13 ITS on reporting) divided by the amount of the non-defaulted assets existing one year before the reference date (the difference between c010 and c030 of template C 09.02 of Annex I of the ITS on reporting). The figure reported in c040 of C 09.02 of Annex I of the ITS on reporting covers only the new defaults of the reported quarter. To calculate an annual default rate all new defaults of the four quarters of the past year shall be taken into account.   DISCLAIMER: The present Q&A on Supervisory reporting is provisional. It will be reviewed after the Implementing Regulation is in force and published in the Official Journal, which may differ from the text of the draft ITS to which this Q&A relates.