EBA · 2022_6519 Rejected question

Article 111 or about

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
111
Topic
Credit risk
Submitted by
Individual
Submitted
2022-07-14
Browse ECB SSM Register → More Q&As on this regulation →

Question

What CCF and provisions should be allocated, if any, in year 1/2/3/4 considering this special situation that I cannot find in the regulation?

Background

We wanted to understand under the standardised approach the capital requirements for liquidity guarantees.  From an insurance point of view, what capital requirements (and CCF)  will attract a facility whereas is guaranteed the liquidity on a project finance loan between the 5th and 10th year (the first 5 years no risk)? The overall project though is 10 years, but the guarantee is provided just for the last 5 years (therefore, in the first 5 years the guarantee will not be called and the same if the project default before the 5th year the insurance is not liable. Otherwise between the 5th and 10th year is a committed guarantee). The product in the cause is an insurance product (off-balance sheet item).
No answer published yet.

Original source: European Banking Authority, Q&A ID 2022_6519

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

How should IRB-institutions exclude exposures according to art 140.4?

Answered 2014-03-21

Grandfathering according to Articles 494a and 494b of the CRR

Answered 2021-03-12

Allocation of additional resources (old CCP question 15 dated 5/08/2013)

Answered 2013-08-05

Transitional provision for deferred tax assets that rely on future profitability

Application of phase-in regime

Answered 2014-05-23

More Q&As on this topic

Application of the currency mismatch treatment to self-employed individuals (natural persons carrying out an economic activity) under Article 123a CRR.

Answered 2026-07-31

Requirements for the purpose of treating exposures secured by mortgages on immovable property as duly secured from an RWA computation perspective under CRR Article 124(2) of the CRR.

Answered 2026-05-08

Use of credit assessments by ECAIs not in scope of Regulation (EC) No 1060/2009.

Answered 2026-03-13

US Hard test: adequacy of considering US charge-off rates corresponding to loss rates for exposures secured by residential property or commercial immovable property situated within the territory of the US

Answered 2026-02-27

Application of the SME definition in specific cases

Answered 2025-11-28

📋 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.