March 29, 2019

EC published the Implementing Decision (EU) 2019/536 regarding the lists of third countries and territories whose supervisory and regulatory requirements are considered equivalent for the treatment of exposures, in accordance with the Capital Requirements Regulation or CRR (EU Regulation No 575/2013). Decision 2019/536 amends the Implementing Decision 2014/908/EU. The key change involves the addition of Argentina to the lists, after EC concluded that the supervisory and regulatory requirements applied to credit institutions in Argentina are at least equivalent to those applied in EU. Decision (EU) 2019/536 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

EC conducted assessments of the supervisory and regulatory arrangements applicable to credit institutions in third countries and territories. These assessments have enabled EC to evaluate the equivalence of these arrangements for the purposes of determining the treatment of the relevant categories of exposures mentioned in Articles 107, 114, 115, 116, and 142 of CRR. In its assessments, EC has considered relevant developments in the supervisory and regulatory framework since the adoption of Implementing Decision (EU) 2016/2358 and taken into account available sources of information, including the assessment made by EBA. The assessment by EBA recommended that the supervisory and regulatory frameworks applicable to credit institutions in Argentina should be considered as equivalent to the Union legal framework for the purposes of Articles 107(4), 114(7), 115(4), 116(5), and 142(1)(4)(b) of CRR.

EC concluded that Argentina has in place supervisory and regulatory arrangements that comply with a series of operational, organizational, and supervisory standards reflecting the essential elements of the Union's supervisory and regulatory arrangements applicable to credit institutions. Therefore, it is appropriate to consider the supervisory and regulatory requirements applied to credit institutions located in Argentina as at least equivalent to those applied in the Union. The Implementing Decision 2014/908/EU, therefore, has been amended to include Argentina in the relevant lists of third countries and territories whose supervisory and regulatory requirements are considered equivalent to the Union's regime for the treatment of exposures in accordance with CRR. Annexes I , IV, and V to Decision 2014/908/EU has been replaced by the text set out in the respective Annexed I, II, and III to Decision (EU) 2019/536.

The lists of third countries and territories considered to be equivalent for the relevant provisions of CRR are not exhaustive. EC, with the assistance of EBA, will continue to regularly monitor the evolution of supervisory and regulatory arrangements of third countries and territories with a view to updating, as appropriate and at least every five years, the lists of third countries and territories set out in Decision 2014/908/EU in light of the constant developments of supervisory and regulatory arrangements.

 

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Effective Date: April 18, 2019

Keywords: Europe, EU, Argentina, Banking, CRR, Supervisory and Regulatory Requirements, Equivalence, Third Country, Decision 2019/536, EC

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