Under the large exposure regime Article 390 (6)(e) of CRR provides an exemption for deduction of items according to article 36, 56 and 66. These deducted items must not be considered in the large exposure regime.

The treatment for supervisory reporting of direct, indirect or synthetic holdings of CET1 instruments in financial sector entities is laid down in the instructions to the solvency reporting templates (templates CA1 and CA4 in particular). These holdings shall be reported as deductions from CET1. The templates and the instructions are included in the Commission Implementing Regulation (EU) No 680/2014 of 16 April 2014 as Annex I and Annex II respectively. DISCLAIMER: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.