Question
Could the EBA clarify, in relation to the applicable reporting reference dates, from which point in time institutions are expected to implement and apply the corresponding model adjustment in their IRRBB reporting once this 2% threshold has been breached? Specifically, should the model change be reflected from the reporting period during which the threshold was exceeded, or from the beginning of the next full reporting period following the breach?
Background on the question
In accordance with Article 12 of Regulation (EU) 2024/857 under the IRRBB standardised approach, institutions are required to apply a specific treatment for non-performing exposures (NPEs) where the share of NPEs exceeds the 2% threshold.
Answer
This question has been rejected because the issue it deals with is already explained or addressed in the regulatory framework, which is sufficiently clear and unambiguous.