The European Banking Authority (EBA) published today an updated list of public sector entities (PSEs) that may be treated as regional governments, local authorities or central governments for the calculation of capital requirements, in accordance with the EU Capital Requirements Regulation (CRR).
The list includes the PSEs that are treated as regional governments, local authorities or central governments under the Standardised Approach (SA) due to their reduced risk level. As a result of this treatment, exposures to the PSEs included in the list will qualify for the same risk weight as their respective regional government, local authority or central government.
The update includes the change of the list of PSEs in Slovakia from "exhaustive" to "non-exhaustive".
The list is compiled using the information provided by the competent authorities and is based on the classification used in each individual country. The approaches and eligibility criteria for PSEs can, therefore, differ from country to country in many cases.
The EBA compiles these lists to supplement the requirements set out in Article 116 of the CRR, which specify the treatment of exposures to PSEs across the EU using the Standardised Approach (SA).