Question
Is it confirmed that the waiver of the provisions in respect of deduction applies to capital instruments or subordinated loans that an entity holds or has granted temporarily for the purposes of a financial assistance operation designed to reorganize and save another entity even prior to the CRR/CRDIV regulations coming into force? Is it confirmed that the waiver of the provisions in respect of deduction for capital instruments or subordinated loans envisaged for the purposes of a financial assistance operation designed to reorganize and save the entity still applies also with reference to holdings already acquired but still necessary for the purposes of the financial assistance operation?
Background on the question
Article 58 of Directive 2006/48/CE (“CRD II”)
Answer
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in theAdditional background and guidance for asking questions. We hope for your understanding.For further information please refer to thepress releaseand the updatedQ&A page.