EBA · 2016_2600 Archive

Clarification on the Geographical Area breakdown

Regulation
Directive 2013/36/EU (CRD)
Article
78, para. 2
Topic
Supervisory reporting - Supervisory Benchmarking
Submitted by
Credit institution
Submitted
2016-01-29
Answer provided by
ESAs (EBA, ESMA, EIOPA)

Question

Is the list of Geographical areas (countries, macroregions) of the template C 103.00 of Annex I complete? Some relevant EU countries are omitted, like Spain. Other non EU relevant countries in term of exposures like US are omitted too. Is there any materiality threshold below which portfolios corresponding to certain Geographical Areas should not be included in templates C 103.00 and C 105.02 of Annex III?

Background

In template C 103.00 of ANNEX II the field Geographical Area is defined as the ISO Code of the counterparty country of residence or macro region of residence. In templates C 103.00 and C 105.02 of Annex III portfolios of the different Geographical Areas must be included. If there is no materiality threshold, a long list of irrelevant portfolios with little exposures could be created because of this Geographical Area breakdown.

Answer

For c030 of template C 103.00 of Annex I of Draft ITS on Supervisory Reporting for Institutions for benchmarking the internal approaches (ITS on benchmarking), the ISO Code of the country of residence of the counterparty was revised and the mentioned countries are now included. All EU institutions using internal approaches to calculate capital requirements for credit risk will be subject to an assessment of their internal approaches and are required to submit to their Competent Authorities the data on the portfolios listed in template C 103.00 of Annex I without particular thresholds for certain geographical areas.   DISCLAIMER: The present Q&A on Supervisory reporting is provisional. It will be reviewed after the Implementing Regulation is in force and published in the Official Journal. The text of the Implementing Regulation may differ from the text of the draft ITS to which this Q&A refers.

Original source: European Banking Authority, Q&A ID 2016_2600

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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