Definition of NPL Ratio for EBA Dashboard and Disclosure

Please clarify, whether or not this inconsistency between NPL ratio definitions in a) EBA Dashboard and b) Disclosure is intended, and which definition is used by EBA for classifying an institute as a “High NPL Bank” (5% threshold).

We noticed an inconsistency in the definition of the NPL ratio, regarding the Cash Balances. In your EBA Dashboard you give the definition of the KPI AQT_3.2 so that it includes cash balances at central banks and other demand deposits. This definition is inconsistent to the definition for disclosure. In the instructions as published in the EU Journal (Commission Implementing Regulation (EU) 2021/ of 15 March 2021 laying down implementing technical standards with regard to public disclosures by institutions of the information referred to in Titles II and III of Part Eight of Regulation (EU) No 575/2013 of the European Parliament and of the Council and repealing Commission Implementing Regulation (EU) No 1423/2013, Commission Delegated Regulation (EU) 2015/1555, Commission Implementing Regulation (EU) 2016/200 and Commission Delegated Regulation (EU) 2017/2295 (europa.eu)) on page 157 (Annex XVI, Paragraph 1) it is stated that “cash balances at central banks and other demand deposits shall be excluded both from the denominator and the numerator of the ratios ”. We ask for clarification whether or not this inconsistency is intended, and which definition is used by EBA for classifying an institute as a “High NPL Bank” (5% threshold). Direct Link: https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.L_.2021...