EBA · 2013_133 Final Q&A

Large exposures: LE4 and LE5 on maturity buckets for institution's and unregulated entities applies to firms reporting on solo basis.

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
Article 394, para. 2
Topic
Supervisory reporting - Large Exposures
Submitted by
Credit institution
Submitted
2013-08-07
Answered
2014-02-14
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

Do COREP templates LE4 and LE5, which contains the maturity structure of 10 largest exposures to unregulated financial entities apply to an entity reporting on solo basis?

Background

Article 394 (2) (e) requires reporting of the maturity buckets in relation to and institution's 10 largest exposures on a consolidated basis to institutions as well as its 10 largest exposures on a consolidated basis to unregulated financial entities. Under ITS on Supervisory Reporting (Large Exposures), the above information is requested in template LE4 and LE5. Reporting instructions provided in "Annex IX - Reporting on Large Exposures" are not clear on the scope for LE4 and LE5. Part II Section 1(5) reads as if templates LE4 and LE5 only need to be reported by parent institutions in a Member State and hence entities reporting on a solo basis will not be required to submit these templates.

Answer

According to Article 394(2) of Regulation (EU) No 575/2013 (CRR), an institution shall report its 10 largest exposures on a consolidated basis to institutions as well as its 10 largest exposures on a consolidated basis to unregulated financial entities. "On a consolidated basis " in this respect shall mean that the parent institution in a Member State reporting Large Exposures (LE) on a consolidated basis is subject to this reporting requirement. These exposures shall be measured on the basis of the consolidated financial situation of the group. An institution reporting LE on a solo basis (irrespective of whether it belongs to a banking group or not) will not be subject to the reporting requirements of Article 394(2) of the CRR and consequently not be required to submit templates C 30.00 and C 31.00.

Original source: European Banking Authority, Q&A ID 2013_133

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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