10 largest exposures to institutions and unregulated financial sector entities

Article 394 (1) of Regulation (EU) No 575/2013 (CRR) requires that institutions report every large exposure (defined in Article 392 of CRR as exposures to clients or groups of connected client where its value is equal to or exceeds 10 % of the eligible capital of the institution ). Furthermore, according to Article 394 (2) of 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 sector entities . These 10 "largest exposures" might at the same time be "large exposures" as defined in Article 392 of the CRR. With reference to the above mentioned example, in case a reporting institution has 7 "large exposures" to institutions, it has to add to its report the next 3 largest (but "non-large") exposures. As a result, the report would altogether contain 10 exposures to institutions of which 7 at the same time qualify as large exposures according to Article 392 of CRR. The same approach is applied to report the 10 largest exposures to unregulated financial sector entities. For further information see Q&As 2013_441 , 2014_1256 and 2014_1366