EBA · 2020_5340 Final Q&A

Applicability of the Guidelines of the Committee of European Banking Supervisors on Article 106(2)(c) and (d) of Directive 2006/48/EC (CRD)

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
390, para. 6
Topic
Large exposures
Submitted by
Credit institution
Submitted
2020-06-30
Answered
2021-12-17
Answer provided by
ESAs (EBA, ESMA, EIOPA)
Browse ECB SSM Register → More Q&As on this regulation →

Question

Are the implementation guidelines on Article 106(2)(c) and (d) of Directive 2006/48/EC (CRD) of the Committee of European Banking Supervisors applicable for interpreting Regulation (EU) No 575/2013 as amended by Regulation (EU) 2019/876?

Background

The Committee of European Banking Supervisors 28 July 2010 Implementation guidelines on Article 106(2)(c) and (d) of Directive 2006/48/EC recast (herein ‘Guidelines’) set out eligibility criteria for when exemptions from the Capital Requirements Directive (herein ‘CRD’) can be applied.  The Guidelines provide that to be eligible for the exemption in Article 106(2) (c) of the CRD, “exposures shall… (a) arise from the provision of specific types of services; (b) arises from client activity; and (c) not last longer than the following business day.” The Guidelines then detail what each of these conditions comprise. Given that no later guidance replaced this element of the Guidelines when the CRD was amended and repealed, it could be argued that the Guidelines apply to operations and exposure calculations under the relevant provisions of CRR and CRR2.

Answer

Pursuant to Article 76 of Regulation (EU) No 1093/2010 (EBA Regulation) the EBA is the legal successor of the Committee of European Banking Supervisors (CEBS) and therefore assumes all of its tasks and competences as stated in recital (10) of that Regulation. Therefore, Guidelines issued by the CEBS are still applicable unless expressly repealed. References in the CEBS Implementation Guidelines on Article 106(2)(c) and (d) of Directive 2006/48/EC recast (CRD) are to be understood to be to Article 390(6)(c) and (d) of Regulation (EU) No 575/2013 (CRR), the terms of which are identical to the text in Article 106(2)(c) and (d) Directive 2006/48, in accordance with the correlation table of Annex IV of Regulation (EU) No 575/2013.

Original source: European Banking Authority, Q&A ID 2020_5340

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.

Similar Q&As

Scope of application of EBA guidelines on loan origination and monitoring

Answered 2022-01-07

Operational risk

Answered 2013-11-08

Consistency between Early intervention measures in BRRD and CRD IV

Answered 2016-10-28

Application of article 95 (2) of Regulation (EU) No 575/2013

Answered 2013-08-27

Interpretation of consolidated prudential requirements

Answered 2016-11-18

More Q&As on this topic

Reporting aggregate exposure to shadow banking entities in CRR3

Answered 2025-06-13

Transaction with underlying assets: “distinct client” vs. “unknown client”

Answered 2024-03-15

"Unexpected outflow" in the context of applying large exposure exemptions granted in Article 390(6)(c) CRR

Answered 2023-06-09

Definition of exposures arising from mortgage lending

Answered 2023-02-10

Mandatory substitution approach according to Article 403 CRR when applying either the Financial Collateral Comprehensive Method (FCCM) or, in the case of securities financing transactions (SFTs) the Internal Model Method (IMM) or master netting agreements to calculate the exposure value.

Answered 2022-01-21

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.