EBA · 2019_4490 Rejected question

Definition of exposure in non-significant business units and relating “significance” test

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
150, para. 1
Topic
Credit risk
Submitted by
Credit institution
Submitted
2019-01-28
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Question

A) Can you please clarify how exposures in non-significant business units in Art. 150(1) (c) should be intended? B) Can you please clarify which are the criteria for such a “significant” test.

Background

Art. 150 (1) (c) of the CRR lacks of specific indications on how to interpret the concept of exposure in non-significant business units, as well as of the criteria to assess the “significance”. The interpretation proposed seems the only plausible also taking into account the guidelines provided in Q&A 2014_1678 where business units are treated in the same way as “type of exposures” and “exposure class” which clearly refer to the counterparty of the exposure.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4490

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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