EBA · 2019_4954 Rejected question

Risk weight of EU unrated central bank whose exposures are guaranteed by its EU government which is rated CQS1

Name: Risk weight of EU unrated central bank whose exposures are guaranteed by its EU government which is rated CQS1: EBA Q&A — EU Financial Regulatory Q&A
Creator: European Banking Authority
License: https://creativecommons.org/licenses/by/4.0/

Regulation: Regulation (EU) No 575/2013 (CRR)
Article: 114, para. 2
Topic: Credit risk
Submitted by: Credit institution
Submitted: 2019-10-23

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Question

What should be the risk weight of an EU unrated central bank whose exposures are fully guaranteed by its EU government which is rated CQS1?

Background

Q&A 3231 states that 100% risk weight is to be assigned to exposures to unrated central bank but it doesn't touch on what shall be the risk weight whether a) the central bank is located in EU and b) If the central government in EU which is rated CQS of 1 as per CRR 114(2) and fully guarantees the exposures of the unrated central bank.

No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4954

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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