EIOPA · 3331
Solvency Capital Requirement (SCR)
- Regulation
- (EU) No 2015/35 - supplementing Dir 2009/138/EC - taking up & pursuit of the business of Insurance and Reinsurance (SII), (EU) No 2009/138 - Solvency II Directive (Insurance and Reinsurance)
- Article
- 180
- Topic
- Solvency Capital Requirement (SCR)
- Submitted
- 2025-04-23
- Answered
- 2025-07-28
Question
Let's consider exposures in the form of bonds and loans that are fully, unconditionally and irrevocably guaranteed by central governments and central banks that meet the conditions described in paragraph 3 of Article 180, and are denominated and funded in the domestic currency of such central government and central bank: if the guarantee meets the requirements set out in Article 215, do these bonds and loans get assigned a risk factor stress(i) that is also calculated based on the table set out in Article 180, paragraph 3?
Background
We seek to confirm the capital treatment for bonds that have been guaranteed by certain governments of countries that are outside the EU.
Answer
This question has been rejected because the issue it deals with is already explained in Article 180 of Delegated Regulation (EU) 2015/35. Article 180(3) explicitly refers to exposures directly towards central governments and central banks meeting the conditions set out therein. The article does not apply to exposures towards other counterparties, even if such exposures are fully, unconditionally, and irrevocably guaranteed by central governments or central banks that meet the conditions described in Article 180(3).
This Q&A is published by European Insurance and Occupational Pensions Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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