EBA · 2023_6725 Rejected question

Opinion to Question 2020_5551, whether an institution is allowed to apply the supporting factor for SMEs and the supporting factor for infrastructure projects simultaneously.

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
501, 501a
Topic
Credit risk
Submitted by
Individual
Submitted
2023-02-22

Question

A pending Question 2020_5551 asks an opinion whether an institution is allowed to apply the supporting factor for SMEs (Art 501) and the supporting factor for infrastructure projects (Art 501a) simultaneously. I share here my opinion to help the answer, as it would be important to our institution, and I think the answer is simplier than thought suggested on that question. The pending question I am referring to is under the link  https://www.eba.europa.eu/single-rule-book-qa/qna/view/publicId/2020_5551

Background

Article 501 and 501a both allow to apply some decreasing factors in Capital Requirement Calculation if the conditions are fulfilled defined in the corresponding Articles. The question is whether both decreasing factors are allowed to use in case conditions of both Articles are fulfilled.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2023_6725

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

More Q&As on this topic

📋 Track EU financial regulation continuously

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

14-day free trial. No credit card required.