EBA · 2016_2801 Final Q&A

Difference between 'product type' and 'product category' and clarification on product type reporting (Annex XIX, part 1.3, template C 68.00)

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
415, para. 3
Topic
Supervisory reporting - Liquidity (LCR, NSFR, AMM)
Submitted by
Competent authority
Submitted
2016-06-22
Answered
2018-01-12
Answer provided by
ESAs (EBA, ESMA, EIOPA)

Question

Template C 68.00 seeks to collect information about the reporting institutions' concentration of funding by product type, broken down into the listed funding types. After giving a broken-down list of funding types, the ITS in point 1.3.2 establishes that ‘for the purpose of completing this template, institutions shall report the total amount of funding received from each product category, which exceeds a threshold of 1 % of total liabilities’. Later, in point 1.3.4 the ITS states that ‘for the purpose of determining those product types from which funding obtained is greater than 1% of total liabilities threshold, the currency is irrelevant’. The doubt arises because in point 1.3.2, the ITS talks about ‘product category whereas in point 1.3.4 and also in the rest of the template, the ITS uses ‘product types’. Although the spirit of the regulation may suggest that both refer to the same concept, it is not clear that ‘product category’ and ‘product type’ can be considered interchangeable and have the same meaning. In either case, some clarification is needed. 1)     Therefore, what does the ITS mean by ‘product category’? Would it be the same meaning as ‘product type’? In either case, a complete description of what is understood as ‘product type’ or ‘product category’ would be helpful. 2)     In this line, and assuming that product type and product category are the same, then, each row of template C 68.00 would be considered a different product type / product category? If so, are they exclusionary? If they are, what are the concepts that have priority? For instance, if we have an unsecured wholesale funding that is both i) of which financial customers and ii) of which from intra-group entities, under which type should it be reported?

Background

see above

Answer

Template C 68.00 of Annex XVIII to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting) gathers information on the most relevant sources of funding for the institutions. Therewith they are required to report the outstanding amount of the funding in terms of carrying value for each product type indicated in the template that is greater than 1% of the total liabilities.   The product type refers to the products listed in paragraph 1 of chapter 1.3 of Annex XIX to the ITS on Supervisory Reporting.   The sub categories listed under e.g. product type ‘wholesale funding, unsecured wholesale funding’ are not exclusionary. See also Q&A 2015_1949 .

Original source: European Banking Authority, Q&A ID 2016_2801

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.

Similar Q&As

More Q&As on this topic

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

14-day free trial. No credit card required.