QA2019-131 - Section 3(a)(2) instruments

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Feb 01, 2024
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QA2019-131

Question


The EBA published a Q&A ( https://eba.europa.eu/single-rule-book-qa/-/qna/view/publicId/2016_2966 ) in which the EBA concluded that 3(a)(2) instruments are not eligible liabilities. Some 3(a)(2) may be T2 instruments. In that case, they qualify as own funds. Could you explain how should we report senior preferred and senior non preferred 3(a)(2) instruments in the LDR ?


Response


In T01.00 the liability should be reported in the category which corresponds to the nature of the contract. In T04.00, the details of the instrument, in particlar the guarantee (T04.00 c0280) need to be clearly and correctly reported, in addition to the third country isuance information.