EBA · 2025_7305 Rejected question

Computation of the secured part of Non-IPRE according to Art.125(1)

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
125, para. 1
Topic
Other issues
Submitted by
Individual
Submitted
2025-01-15
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Question

In the computation of the secured part of Non-IPRE exposures, should senior liens from banks within the same group be taken into account?

Background

Article 125(1) specifies that, to determine the portion of the institution’s exposure eligible for the 20% risk weight, 55% of the property value must be reduced by the amount of more senior liens not held by the institution. However, the regulation does not specify the scope to be considered for the institution—whether at the group level or for individual banking entities.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2025_7305

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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