Question
Should such investment products (such as bonds) accounted at amortised cost be included in the CSRBB perimeter when the management intention is to hold the asset until maturity?
Background on the question
In French GAAP, investment products such as bonds can be accounted at amortised cost or fair value depending on the management intention. Investment products are accounted at amortised cost if the management intention is to hold them until maturity. Market value changes for investments products at amortised cost are not accounted. However the market value changes can impact the bank if the product is sold (which is not the management intention but may occur if liquidity is needed due to market conditions for instance).
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 paragraph 124 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”.