In EBA /ITS/2017/01 published 07 April 2017, c230 and c240 of C 07.00 are sub categories of c220. If the RW applied is based on uniform treatment paragraphs rather than an ECAI e.g. Article 119(2) of Regulation (EU) No 575/2013 (CRR) , should these RWA be included in column 230 & 240 of COREP C 07.00 even if they do have an own ECAI or could have applied the sovereign rating. e.g We have an exposure of 1000 in GBP to a Regional Government incorporated in UK for which a 20% RW is applied according to Article 115 (5) of the CRR. Additionally this exposure could attract a 20% RW by applying the sovereign rating. Based on the example do we include the RWAs of 200 GBP in column 240?
Not clear instructions in Annex II section 3.
According to the instructions of Annex II to Regulation (EU) No 680/2014 (ITS on Supervisory Reporting), the risk weighted exposure amount of exposures toward counterparties included in the exposures classes of Articles 112 b) to d), f), g), l) and o) of CRR shall be reported in column 240 of template C 07.00 of Annex I to the ITS on Supervisory Reporting to the extent that the risk weight of these exposures is determined based on a credit assessment derived from central government. With regard to the content of column 230 of C 07.00, please see Q&As 2014_1188 and 2017_3183.
Having said that, and with regard to the example mentioned in the question, exposures to regional governments that receive a preferential treatment on the basis of Article 115 (5) of Regulation (EU) No 575/2013 (CRR), shall neither be reported in column 240 of template C 07.00 nor should they be reported in column 230.