QA2017-20 - Guidance T04.00 / T05.00 / T06.00

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Feb 01, 2024
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QA2017-20

Question


Please provide a more specific definition for the 'funding amount provided by any group entity'. There are at least two options of understanding: Option A) intragroup held outstanding amounts: this would not fit to the definition “excluding intragroup liabilities”. Option B) If the reporting entity provides funding to the buyer of the instrument (which is used to buy the instrument), these funding amounts should be reported here.


Response


The 'funding amount provided by any group entity' originates from the BRRD and the aim is to avoid the cross-financing of MREL and ultimately a contagion risk. Therefore, only option B is envisaged here.