EBA · 2019_4577 Rejected question

Treatment for the intragroup derivative liabilities in the methodology to calculate ex-ante annual contributions to the Single Resolution Fund

Regulation
Directive 2014/59/EU (BRRD)
Article
103, para. 7
Topic
Resolution financing arrangements
Submitted by
Industry association
Submitted
2019-02-27
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Question

Are there any provisions preventing to apply the same treatment for the intragroup derivative liabilities and for the other derivative liabilities as mentioned in Paragraph 4 of Article 5 of Delegated regulation (EU) 2015/63 ?

Background

Article 5 of the Delegated Regulation (EU) 2015/63 defines the methodology to calculate ex-ante annual contributions to the Single Resolution Fund and lists various liabilities excluded from the calculation. Paragraph 3 of Article 5 of the Delegated Regulation (EU) 2015/63 details the methodology that shall apply to derivative liabilities valued with Article 429(6) and (7) of Regulation (EU) 575/2013 (i.e. leverage methodology) and with the value resulting from accounting provisions (as regards the application of various accounting standards, on-balance sheet and off-balance-sheet positions should be considered). In the same paragraph, a floor states that the value assigned to derivative liabilities should not be less than 75% of the accounting methodology.
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Original source: European Banking Authority, Q&A ID 2019_4577

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.

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