QA2021-54 - ALR: Reporting of Accrued Interest

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Feb 01, 2024
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QA2021-54

Question


Should accrued interest still be treated as MREL eligible for the ALR submission as well as the future ITS on TLAC/MREL Monitoring report although it is not part of the MREL capacity?


Response


Accrued interest are embedded in the outstanding amount of eligible liabilities to be reported in the various ALR tabs. The outstanding amount of a claim or instrument is the sum of the principal amount of, and accrued interest on, the claim or instrument. As regards the maturity breakdown of eligible liabilities, please refer to the CIR 2021/763 : "Where a maturity breakdown is required, the residual maturity shall be the time until the contractual maturity or, in accordance with the conditions of Articles 72c(2) or (3) of Regulation (EU) No 575/2013, the earliest possible date on which the option can be exercised. In case of interim payments of principal, the principal shall be split and allocated into the corresponding maturity buckets. Where applicable, the maturity shall be considered separately for both the principal amount and accrued interest."