EBA · 2016_2845 Rejected question

Items associated with particular high risk

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
128, para. 2
Topic
Credit risk
Submitted by
Credit institution
Submitted
2016-07-26
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Question

Does the term "investments" in letters (a) investments in venture capital firms, (b) investments in AIFs (...) and (c) investments in private equity include only exposures in the form of shares or units in (equity of) venture capital firms, AIFs, and private equity, or it is related to all forms of exposures (e.g. debt and equity instruments, units and shares in CIUs, etc.)?

Background

It is not clear to us, whether the Bank should evaluate all forms of exposures following A128 para. 2 letters (a), (b) and (c), or only a subgroup of exposures (in this case only equity instruments and shares or units in a CIU). We believe that different terms (exposures, investments and financing) used for expressing exposure types in A128 are meant to differentiate the targeted forms of exposures that should be treated as items associated with particular high risk.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2016_2845

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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