EBA · 2014_1050 Final Q&A

SME supporting factor

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
Article 501
Topic
Credit risk
Submitted by
Credit institution
Submitted
2014-04-03
Answered
2015-10-02
Answer provided by
ESAs (EBA, ESMA, EIOPA)
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Question

Can you please confirm whether the SME supporting factor can be applied to derivative exposure and Repo exposure?

Background

Trying to complete the COREP return and we need confirmation as to whether the SME supporting factor can be applied to derivative and Repo exposure.

Answer

Article 501(2)(a) of Regulation (EU) No 575/2013 (CRR) states that the SME supporting factor applies to exposures included in the retail, corporates or secured by mortgages on immovable property classes, subject to satisfaction of all other criteria set out in that Article.  Whether an exposure qualifies for inclusion in the retail, corporates or secured by mortgages on immovable property class depends on the features of the relevant exposure meeting the criteria set out in the retail, corporates or secured by mortgages on immovable property provisions, as the case may be. This also applies to the case of derivatives and repurchase agreements. See further Q&A 704 .

Original source: European Banking Authority, Q&A ID 2014_1050

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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