EBA · 2025_7631 Rejected question

Obligations in Equity exposures of Article 133 (1) (c) (i) CRR

Regulation
Regulation (EU) No 575/2013 (CRR)
Article
133, para. 1
Topic
Credit risk
Submitted by
Other
Submitted
2025-11-21
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Question

Does the term “obligation” in Article 133 (1) (c) (i) CRR refer to the principal amount, or does it also refer to the interest payment solely?

Background

According to the prospectus, a given debt instrument forsees the possiblity of deferral of interest payment by the issuer. For the purpose of determining the correct exposure, clarification is needed if this causes the debt instrument to be assigned to the equity exposure class according to Article 133 (1) (c) (i) CRR, or if it does not, as the deferral possibility refers solely to the interest payment and not to the principal amount itself.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2025_7631

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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