Domestic - non-domestic distinction in Corep and Finrep

What should drive the domestic-non domestic distinction for COREP template 4.0 row 850 for the consolidated reporting of an institution with a holding company that is resident in another member state?

COREP definition of non-domestic according to Annex II of the ITS: “Exposures shall be deemed to be domestic where they are exposures to counterparties located in the Member State where the institution is located” Finrep reporting instruction from Annex V of the ITS: “107. Template 20 shall be reported when the institution exceeds the threshold described in Article 5.1(a)(iv). The geographical breakdown by location of the activities in templates 20.1 to 20.3 distinguishes between “domestic activities” and “non-domestic activities”. “Location” means the jurisdiction of incorporation of the legal entity which has recognized the corresponding asset or liability; for branches, it means the jurisdiction of its residence. For these purposes, “Domestic” shall include the activities recognised in Member State where the institution is located. 108. Templates 20.4 to 20.7 contain information “country-by-country” on the basis of the residence of the immediate counterparty. The breakdown provided shall include exposures or liabilities with residents in each foreign country in which the institution has exposures. Exposures or liabilities with supranational organisations shall not be assigned to the country of residence of the institution but to the geographical area “Other countries”.” Note that there a relevant Q&A is published by EBA (See link below): http://www.eba.europa.eu/single-rule-book-qa/-/qna/view/publicId/2013_330