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2022 11 03 Letter to Mr Berrigan re EBA Report on the application of the Infrastructure Supporting Factor.pdf
2022 10 31 PMR -2022 Jose Manuel Campa.pdf
2022-11-08 Agenda SGST meeting.docx
Report on the application of the Infrastructure Supporting Factor.pdf
Report on the application of the Infrastructure Supporting Factor
EBA publishes assessment on the application of the supporting factor to infrastructure lending
The European Banking Authority (EBA) today published a Report, which analyses some qualitative as well as quantitative aspects of the lending trends and riskiness of infrastructure loans which have benefitted from a capital reduction due to the introduction of the so-called infrastructure supporting factor (ISF) under the Capital Requirements Regulation (CRR). While data on infrastructure lending is scarce overall, the EBA analysis relied on information received from a sample of banks that participated in a survey launched in April 2022. The data collected is not sufficient to conclude on the impact of ISF on lending or the consistency of the riskiness of the affected loans with the own funds requirements. At the same time, from a broader prudential perspective, and in line with previous EBA recommendations, the continued application of the ISF could be questioned.