EBA validations rules for DPM 2.8 with reference to rule V3975_S.

Institutions report interest income and expenses related to transactions with related parties in rows 010 and 020 of template F 31.02 of Annex V to Regulation (EU) 2014/680 (ITS on Supervisory Reporting). Pursuant to Part 2.31 and Part 2.192 of the same regulation, rows 010 and 020 of template F 31.02 can also include interest income and interest expense on hedging instruments. The contribution of the hedging instrument shall be presented according to the contribution of the hedged instrument to profit or loss.(see Q&A 2014_1203). Thus, the reported values in rows 010 and 020 of template F 31.02 can be negative when the effect from hedging instruments outweighs the positive effect from the hedged item and other transactions with related parties. In contrast, validation rule v3975_s requires that the value reported in these rows is greater than or equal to zero. Therefore, the severity of validation rule v3975_s has been changed to “Warning” to allow for the possibility of negative values in rows 010 and 020 of template F 31.02.