EBA opinion on Poland’s request for a partial waiver of CRR Article 129(1)(c), allowing credit quality step 2 for up to 10% of covered bond exposures due to concentration risks in the Polish banking sector under the Capital Requirements Regulation.
The European Banking Authority (EBA) published today an Opinion addressed to the Polish Financial Supervision Authority (FSA) following the Competent Authority’s notification of its intention to introduce a partial waiver of Article 129 (1)(c) of the Capital Requirements Regulation (CRR), which specifies the conditions for the eligibility of covered bonds in relation to risk weight preferential treatment. Given the significant potential concentration problem in Poland, the EBA is of the opinion that the application of a partial waiver is adequately justified.