Choice of method for commodities risk when an entity has 2 different business lines

Regulation (EU) No 575/2013 (CRR) does not seem to exclude the possibility of using two different methods for calculating own fund requirements for commodities risk. However, it must be highlighted that in order to apply the "extended maturity ladder approach" in Article 361 CRR, a series of conditions must be met. These conditions refer to certain characteristics which regard to the whole commodities portfolio of the financial institution, basically: undertaking significant commodities business and having an appropriately diversified commodities portfolio. Fulfilling these conditions, what allows institutions to qualify for the use of this method, and then, applying this method only to a portion of the commodities portfolio does not seem to be in line with the spirit of the regulation. Therefore, it would not be consistent to allow a combination of the approach in Article 361 CRR and the other ones in Articles 359 and 360 CRR 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.