Question
Should Mutual Funds which capitalise interests (no payment of interest and accounted at fair value) be taken into account for the net interest income measure plus market value changes ?
Background on the question
Banks may invest in Mutual Funds which capitalise interests and are accounted at faire value
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework. In particular, please see paragraphs 14, 15 (IRRBB et CSRBB) et 124 (CSRBB) of the Guidelines issued on the basis of Article 84 (6) of Directive 2013/36/EU specifying criteria for the management and mitigation of the identification, evaluation, risks arising from potential changes in interest rates risk or credit spread risk, of the assessment and monitoring of institutions’ non-trading book activities (EBA/GL/2022/14).For further information on the purpose of this tool and on how to submit questions, please see “Additional background and guidance for asking questions”.