Featured Product

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    April 08, 2021

    EBA updated the list of regional governments and local authorities (RGLAs) that may be treated as central governments for the calculation of capital requirements. Also updated was the list of public-sector entities (PSEs) that may be treated as central government, regional government, or local authorities. These lists are intended to supplement the requirements set out in Articles 115 and 116(4) of the Capital Requirements Regulation or CRR, which specifies the treatment of exposures to central government, regional governments, or local authorities across EU as part of the standardized approach—also known as SA—for credit risk.

    The list of RGLAs includes the regional governments and local authorities that are treated as central governments under the standardized approach due to their reduced risk level. As a result of this treatment, exposures to the regional governments and local authorities included in the list will qualify for the same risk-weight as their respective central government. Compared to the previous version, the updated list includes amendments to the regional governments and local authorities in Austria, Finland, the Netherlands, and Sweden. Additionally, the list of PSEs includes the PSEs that are treated as regional governments, local authorities, or central governments under the standardized approach due to their reduced risk level. As a result of this treatment, exposures to the PSEs included in the list will qualify for the same risk-weight as their respective regional government, local authority, or central government. Compared to the previous version, the updated list includes amendments to the PSEs in Greece, Germany, Luxembourg, Malta, Portugal, Slovenia, and Slovakia and updates to the names of PSEs in Denmark and Spain. Both the lists are compiled using information provided by the competent authorities and are based on the classification used in each country. The approaches and eligibility criteria for PSEs and regional governments and local authorities, therefore, differ from country to country in many cases.

     

    Related Links

    Keywords: Europe, EU, Banking, CRR, Basel, Credit Risk, Regulatory Capital, Standardized Approach, Public Sector Entities, EBA

    Featured Experts
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295