EBA · 2025_7437 Rejected question

Inconsistency in the formulation of conditions for Hard Tests

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
125, 126, 199, para. 125 (3), 126 (3), 199 (3, 4)
Topic
Credit risk
Submitted by
Credit institution
Submitted
2025-05-07
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Question

Can Art. 199 para. 3, para. 4 CRR be interpreted in line with amended Art. 125 para. 2 sub-para. 3 and para. 3 sub-para. 1 6 , 126 para. 2 sub-para. 3 and para. 3 sub-para. 1, 199 para. 4a CRR; hence, is it sufficient that a member state’s competent authority publishes loss rates despite different wording in Art. 199 para. 3, 4 CRR?

Background

Under CRR III, Art. 199 para. 3, para. 4 CRR are to be interpreted in line with the amended Art. 125 para. 2 sub-para. 3 and para. 3 sub-para. 1, 126 para. 2 sub-para. 3 and para. 3 sub-para. 1, 199 para. 4a CRR. Hence, it is sufficient that a member state’s competent authority publishes loss rates despite different wording in Art. 199 para. 3, para. 4 CRR.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2025_7437

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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