- accounting portfolios
means financial instruments aggregated by valuation rules.
- Accounting value assuming no netting or other CRM
refers to the accounting balance sheet value not taking into account any effects of netting or other credit risk mitigation.
- accumulated negative changes in fair value due to credit risk
means, for non-performing exposures, accumulated changes in fair value due to credit risk where the accumulated net change is negative.
- Acquisition cost
shall mean the amount paid by investors;
- business as usual
shall mean ‘a situation without any liquidity stress assumption.
- Carrying amount
shall mean the amounts reported on the balance sheet of the institution for investees that are neither fully nor proportionally consolidated;
- Cash collected net of costs
shall mean the amount of cash received net of transaction costs, such as fees and commissions paid to agents, transfer taxes and duties.
- Consulting and professional services
shall mean expenses made to get expert or strategic advice.
- Date of accounting
means the date when a loss or reserve/provision was first recognised in the Profit and Loss statement, against an operational risk loss.
- Debt balance reduction
shall mean the gross carrying amount of the exposure that was derecognised from the balance sheet in exchange for the collateral obtained by taking possession, at the exact moment of the exchange, and the related impairments and negative changes in fair value due to credit risk accumulated at that point in time.
- debtor
shall mean an obligor within the meaning of Article 178 CRR.
- Entry date
shall mean the date on which the investee entered within the ‘scope of the group’;
- Expenses related to credit risk
shall mean administrative expenses in the context of credit events, such as expenses incurred in respect of taking possession of collateral or legal proceedings.
- Fair value of the investments for which there are published price quotations
shall mean the price at the reference date.
- fixed rate instrument
means ‘fixed rate instrument’ as defined in Article 1, point (4), of Commission Delegated Regulation (EU) 2024/857.
- floating rate instrument
means ‘floating rate instrument’ as defined in Article 1, point (5) of Delegated Regulation (EU) 2024/857.
- Foreign exchange
includes fee and commission income (expenses) for foreign exchange services (including exchange of foreign banknotes or coins, fees on international currency cheques, bid-ask-spread) and fee income from/expenses on international transactions.
- Goodwill link to the investee
shall mean the amount of goodwill reported on the consolidated balance sheet of the reporting institution for the investee in the items ‘goodwill’ or ‘investments in subsidiaries, joint ventures and associated’;
- Gross loss
means a loss - as referred to in Article 322(3), point (b), of Regulation (EU) No 575/2013 - stemming from an operational risk event or loss event type before recoveries of any kind, without prejudice to ‘rapidly recovered loss events’ as defined below.
- institution
shall mean the institution, which applied the forbearance measures.
- liquidity support drawn
shall mean the sum of the carrying amount of the loan and advances granted to unconsolidated structured entities and the carrying amount of debt securities held that have been issued by unconsolidated structured entities.
- Litigation expenses not covered by provisions
shall mean litigation expenses not related to credit risk that were not covered by an associated provision.
- location
shall mean the jurisdiction of incorporation of the legal entity which has recognised the corresponding asset or liability.
- Loss
shall mean the loss defined in point (2) of Article 5 CRR, including losses stemming from leased property.
- memo item
refers to a separate item that is not a subset of an exposure class.
- more than twice
shall mean exposures classified as forborne in accordance with paragraphs 240 to 268 of this Part at the reporting reference date, to which forbearance measures have been applied at two, respectively more than two different points in time.
- Net cumulated recoveries
shall mean (i) the amount of cash or cash equivalents collected, net of related costs, in the context of collateral liquidations, of the sale of exposures and of risk transfers, respectively (ii) the value at initial recognition as defined in paragraph 175i of this Part of the collateral obtained in the context of outflows due to taking possession of collateral.
- Non-trading non-derivative financial assets measured at a cost-based method
includes financial instruments measured at cost-based methods as well as instruments measured at the lower of cost or market (‘LOCOM’) under a non-continuous basis (moderate LOCOM), regardless of their actual measurement as of the reporting reference date.
- of which
refers to an item that is a subset of a higher level exposure category whereas ‘memo item’ refers to a separate item that is not a subset of an exposure class.
- Of which: interest-income on impaired financial assets
means interest income on credit-impaired financial assets, including purchased or originated credit-impaired financial assets where the latter are considered as non-performing in accordance with paragraph 215 of this Part.
- On an immediate risk basis
shall mean that, for the purposes of determining whether a claim is a cross-border or local claim, the position is allocated to the direct counterparty of the contract.
- On an ultimate risk basis
shall mean that, for the purposes of determining whether a claim is a cross-border or local claim, the position is allocated to a third party that has contracted to assume the debts or obligations of the primary counterparty if that party fails to perform, where such a third party exists.
- previous reporting reference periods
shall mean all reporting reference periods until and including the one ending at the preceding calendar year end.
- Profits/(-) losses from sale of collateral obtained by taking possession
shall mean the difference between the carrying amount of the collateral measured at the date of derecognition and the amount of cash received net of transaction costs.
- Rapidly recovered loss events
means operational risk events that lead to losses that are partly or fully recovered within five working days.
- Real estate expenses
shall mean expenses for repairs and maintenance that do not improve the use or prolong the useful life of the real estate, as well as utility expenses (water, electricity and heating).
- Recovery
means an independent occurrence related to the original operational risk loss that is separate in time, in which funds or inflows of economic benefits are received from first or third parties, such as insurers or other parties.
- refinancing
shall mean the use of debt contracts to ensure the total or partial payment of other debt contracts the terms of which the debtor is unable to comply with.
- relevant indicator
refers to ‘the sum of the elements’ at the end of the financial year as referred to in Article 316, Table 1, point 1 of Regulation (EU) No 575/2013.
- Residence of investee
shall mean the country of residence of the investee;
- residence of the obligor
refers to the country of incorporation of the obligor.
- Sector of investee
shall mean the sector of counterparty referred to in paragraph 42 of Part 1 of this Annex;
- Severance payments
shall mean payments relating to the early termination of a contract and shall include termination benefits as defined in IAS 19.8;
- Share capital of investee
shall mean the total amount of capital issued by the investee as of the reference date;
- Stage 1
refers to impairment measured in accordance with IFRS 9.5.5.5.
- Stage 2
refers to impairment measured in accordance with IFRS 9.5.5.3.
- Stage 3
refers to impairment on credit-impaired assets as defined in Appendix A of IFRS 9;
- the carrying amount
means the amount to be reported in the balance sheet.
- time passed since exposures classified as non-performing
shall mean the time in years passed since exposure has been classified as non-performing.
- Trading financial assets
includes all financial assets classified as trading under the relevant national GAAP based on BAD.
- Trading financial liabilities
includes all financial liabilities classified as trading under the relevant national GAAP based on BAD.
- Unsecured loans and advances without guarantees
refers to exposures for which neither collateral was pledged nor financial guarantees were received;
- upside uncertainty
shall mean the following: As determined by Article 8(2) of Delegated Regulation (EU) 2016/101, AVAs are calculated as the difference between the fair value and a prudent valuation that is determined on the basis of a 90 % confidence that institutions can exit the exposure at that point or better within the notional range of plausible values.
- Value at initial recognition
shall mean the gross carrying amount of the collateral obtained by taking possession at the point in time of the initial recognition in the balance sheet of the reporting institution.
- Voting rights (%)
shall mean the percentage of voting rights associated to the ownership instruments held by the institution as of the reference date;