EBA · 2024_7186 Rejected question

Can the Article 122a adjustment be combined with the Article 501 SME-adjustment?

Name: Can the Article 122a adjustment be combined with the Article 501 SME-adjustment?: 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: 122a, para. 3
Topic: Credit risk
Submitted by: Credit institution
Submitted: 2024-08-30

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Question

The Article 122a paragraph 3 letter c subletter ii CRR says, that if all the criteria are met, there can be a factor of 80 % applied. But it can't be combined with the 75 % adjustment of Artikle 501a. But can it be combined with the adjustment for SMEs due to Article 501?

Background

If it is possible to combine both factors, there would be a final riskweight between 61% an 68% for specialised lending exposures which are also SMEs, which is lower than the 75 % of Article 501a CRR.

No answer published yet.

Original source: European Banking Authority, Q&A ID 2024_7186

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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