EBA launches discussion on possible treatments of unrealised gains measured at fair value

02 August 2013

EBA published a discussion paper on possible treatments of unrealised gains of assets and liabilities measured at fair value, other than including them in CET 1 without adjustment. Comments should be sent to the EBA by 27 September, 2013.

The proposed discussion paper has been developed on the basis of Article 80(4) of Regulation 575/2013 of 26 June 2013 (CRR), which requires the EBA to provide technical advice to the European Commission on possible treatments of unrealised gains measured at fair value. In its advice, the EBA shall take into account relevant developments in international accounting standards and international agreements on prudential standards for banks.

This discussion paper expresses the EBA's preliminary views on possible treatments of unrealised gains measured at fair value and aims at gathering the stakeholders' inputs on this topic at an early stage of the process.

In particular, this paper tables:

• the relevant criteria that should be taken into consideration in the analysis of the different policy options for the treatment of unrealised gains; and
• an analysis of the policy options.

Following the outcome of this consultation, the EBA will deliver its technical advice to the Commission by 1 January, 2014. Comments can be sent to the EBA by 27 September, 2013.

Press release

Discussion paper

© EBA