EBA · 2022_6476 Rejected question

Netting of DTAs with DTLs for the purposes of the calculation of leverage exposures

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
429, para. 7
Topic
Leverage ratio
Submitted by
Competent authority
Submitted
2022-06-07
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Question

For the purposes of calculation of leverage exposures as per CRR Art. 429 should the amount of DTAs be reduced  by the amount of the associated deferred tax liabilities?

Background

According to CRR Art. 429 par 7 point b, unless otherwise expressly provided in Part 7, institutions, in order to calculate the total exposure measure, shall not net assets with liabilities. Does this restriction also comprise netting of DTAs with DTL prescribed by the accounting framework (for example deferred tax assets and the deferred tax liabilities that relate to taxes levied by the same tax authority and on the same taxable entity)?
No answer published yet.

Original source: European Banking Authority, Q&A ID 2022_6476

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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