Question ID
2014_1050
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Credit risk
Article
Article 501
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Credit institution
Subject matter
SME supporting factor
Question

Can you please confirm whether the SME supporting factor can be applied to derivative exposure and Repo exposure?

Background on the question

Trying to complete the COREP return and we need confirmation as to whether the SME supporting factor can be applied to derivative and Repo exposure.

Submission date
Final publishing date
Final answer

Article 501(2)(a) of Regulation (EU) No 575/2013 (CRR) states that the SME supporting factor applies to exposures included in the retail, corporates or secured by mortgages on immovable property classes, subject to satisfaction of all other criteria set out in that Article.  Whether an exposure qualifies for inclusion in the retail, corporates or secured by mortgages on immovable property class depends on the features of the relevant exposure meeting the criteria set out in the retail, corporates or secured by mortgages on immovable property provisions, as the case may be. This also applies to the case of derivatives and repurchase agreements.

See further Q&A 704.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.
Note to Q&A

Update 26.03.2021: This Q&A has not yet been reviewed by the EBA in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).

Update 28.10.2021: This Q&A has been reviewed in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR) and continues to be relevant.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.