Reporting of own funds deductions required by the competent authority.

What is the treatment for the purpose of supervisory reporting of specific own funds deductions or prudential filters required by the competent authority pursuant to Article 104(1)(d) of Directive 2013/36/EU?

The question concerns deductions or prudential filters resulting from the application of Pillar 2 powers by the competent authority (Article 104(1)(d) of the CRD) targeted at specifically identified risks, used in combination with target ratios (Total SREP capital requirement ratio - TSCR) applied pursuant to the EBA SREP Guidelines (EBA/GL/2014/13 and EBA/CP/2017/18). In such cases, treating the deductions as Pillar 2 adjustments (COREP template C04, row 820 - “Own funds requirements related to Pillar II adjustments”) does not seem appropriate. In fact, following Q&A 2016_2699, row 820 of C04 is understood to refer to the total of all Pillar 2 measures and is alternative to the indication of Pillar 2 target ratios.