For the purposes of populating C 07.00 and C 09.01 CoRep returns, should exposures to a regional government/local authority covered under Article 115(4) CRR or a public sector entity covered under Article 116(4) CRR be categorised for reporting as regional government/local authority and public sector entity exposures respectively (with column 240 reported as appropriate), or should they both be categorised as central government exposures?
If reported as exposures to central government in C 07.00 and C 09.01 then for the purposes of populating the LE templates (C 27.00 etc) should the exposure be reported as one to the central government itself or to the specific named regional government/local authority, or public sector entity to which the exposure is incurred?
The categorisation for the CoRep reporting links to Article 112(b) and (c) but under Article 115(4) and 116(4) the wording is ‘treated as exposures to the central government’ as opposed to ‘risk weighted as exposures to the central government’ and hence it is not clear how to categorise for CoRep purposes.
Article 115(4) and Article 116(4) of Regulation (EU) No 575/2013 (CRR) do not change the allocation to the exposure class but only the applicable risk weight. Therefore exposures to regional governments and local authorities and public sector entities which fall within the scope of Article 115(4) or 116(4) CRR respectively, do not have to be reported as exposures to central governments.