- Question ID
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2015_2506
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Large exposures
- Article
-
400
- Paragraph
-
2
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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Article 400 (2) CRR
- Name of institution / submitter
-
BearingPoint
- Country of incorporation / residence
-
Germany
- Type of submitter
-
Consultancy firm
- Subject matter
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Can multiple exemptions be applied to an exposure at the same time?
- Question
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This question relates to the application of multiple exemptions from article 400 (2) CRR in specific cases. As stated in article 400 (2) CRR „competent authorities may fully or partially exempt exposures“. Which exemption should be applied to an exposure if it falls under the incidence of more than one of the partial exemptions from article 400 (2) CRR? We would like to give an example related to this question. In Germany, a partial exemption of 75% may be applied according to article 400 (2) c) CRR for exposures, excluding participations or other kinds of holdings, incurred by an institution to its parent undertaking, to other subsidiaries of that parent undertaking or to its own subsidiaries, in so far as those undertakings are covered by the supervision on a consolidated basis to which the institution itself is subject, in accordance with this Regulation, Directive 2002/87/EC or with equivalent standards in force in a third country. Furthermore, according to article 400 (2) i) CRR an exemption of 50% may be applied to medium/low risk off-balance sheet undrawn credit facilities referred to in Annex I.
- Background on the question
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Example: Assume an institute has given a loan commitment of 200 million euro to a subsidiary and 100 million euro of this commitment have been drawn. Thus an open loan commitment of 100 million euro remains. Considering the exemption of 75% given by article 400 (2) c) CRR a capital charge recourse of 25 million euro remains outstanding. However, given that an exemption of 50% according to article 400 (2) i) CRR could be applied to this exposure, should a capital charge open loan position of 12.5 million euro be reported?
- Submission date
- Rejected publishing date
-
- Rationale for rejection
-
Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.
If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.
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- Status
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Rejected question