EBA · 2024_6970 Rejected question

Sovereign credit assessment to apply to exposure of central government, central bank and government-100%-owned central bank.

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
114, para. 2
Topic
Credit risk
Submitted by
Credit institution
Submitted
2024-01-18
Browse ECB SSM Register → More Q&As on this regulation →

Question

1. Is sovereign credit assessment of a country by a nominated ECAI available for assigning a corresponding risk weight to exposures to the central government or central bank of this country? 2. Is sovereign or central government credit assessment applicable to central bank when a central bank is 100% owned by central government?

Background

Article 114 CRR states that exposures to central governments and central banks shall be assigned a 100% risk weight, unless the treatments set out in paragraphs 2 to 7 apply. And article 114 (2) CRR states exposures to central governments and central banks for which a credit assessment by a nominated ECAI is available shall be assigned a risk weight in accordance with Table 1 which corresponds to the credit assessment of the ECAI in accordance with Article 136. Q&A 2017_3231 has answered that a nominated ECAI has provided a credit assessment that applies to exposures to the central government of a third country but not to exposures to the central bank of this country, this credit assessment is not available for assigning a corresponding risk weight to exposures to the central bank, vice versa.  While the final answer of Q&A 2017_3231 is not covered the availability of sovereign credit assessment to central government or central bank and the situation of credit assessment that applies to exposure to the central government who fully own the central bank of its country.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_6970

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

Risk weight to apply to exposures to unrated central banks

Answered 2017-07-14

Exposures to unrated institutions

Answered 2019-03-01

Template C07.00 Column 240: of which: with a credit assessment derived from Central Government

Answered 2016-09-09

Use of ECAI credit assessments for the determination of risk weights

Answered 2015-07-03

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

Answered 2026-03-13

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.