EBA published an updated list of regional governments and local authorities that may be treated as central governments for the calculation of capital requirements, in accordance with the EU Capital Requirements Regulation (CRR). Compared to the last published version, the list includes changes to the regional governments and local authorities in Finland.
The list includes the regional governments and local authorities that are treated as central governments under the standardized approach due to their reduced risk level. Consequently, exposures to the regional governments and local authorities included in the list will qualify for the same risk-weight as their respective central government. The list is compiled using the information provided by the competent authorities and is based on the classification used in each country. The approaches and eligibility criteria for regional governments and local authorities, therefore, differ from country to country in many cases. EBA compiles the list to supplement the requirements set out in Article 115 of the CRR, which specifies the treatment of exposures to regional governments and local authorities across the EU, using the standardized approach.
Keywords: Europe, EU, Banking, Standardized Approach, Public Sector Entities, Capital Requirements, CRR, EBA
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