EBA · 2024_7269 Final Q&A

Clarification of reporting of lending or financing where the use of proceeds is unknown in row 440 from Template 7 (ESG Disclosure)

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
449a, para. Template 7 – Mitigating actions: Assets for the calculation of GAR
Topic
Transparency and Pillar 3
Submitted by
Other
Submitted
2024-12-09
Answered
2025-05-23
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

Should all the instruments or lending against Sovereigns, where the use of proceeds is unknown, be excluded from the numerator of Template 7 ESG Disclosure - row 460 - Sovereigns and moved to row 440 - Other assets (e.g. Goodwill, commodities etc.)?

Background

Following the Commission Notice C/2024/6691 for EU taxonomy, published on 8th of November 2024 ( Q.15: How should exposures of financial undertakings to regional governments and to entities controlled by States be treated?) , we would like to understand if the exposures related to lending or financing where the use of proceeds is unknown should be excluded from the numerator of Template 7 ESG Disclosure.

Answer

Assets on lending or financing central governments, central banks and supranational issuers by the institutions irrespective of the use of proceeds, should be excluded from both the numerator and denominator of the GAR according to Article 7(1) of the Disclosures Delegated Act. Institutions should disclose them in row 46 – Sovereigns of Template 7.

Original source: European Banking Authority, Q&A ID 2024_7269

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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