EBA updates list of public sector entities for the calculation of capital requirements

22 March 2018

The European Banking Authority (EBA) published today an updated list of regional governments and local authorities that may be treated as central governments for the calculation of capital requirements, in accordance with the EU Capital Requirements Regulation (CRR). 
 
The list includes the regional governments and local authorities that are treated as central governments under the Standardised Approach (SA) due to their reduced risk level. As a result of this treatment, exposures to the regional governments and local authorities included in the list will qualify for the same risk weight as their respective central government.
 
Compared to the last published version, the list includes changes to the regional governments and local authorities in Finland.
 
The list is compiled using the information provided by the competent authorities and is based on the classification used in each individual country. The approaches and eligibility criteria for regional governments and local authorities, therefore, differ from country to country in many cases.

Legal basis

The EBA compiles these lists to supplement the requirements set out in Article 115 of the CRR, which specifies the treatment of exposures to regional governments and local authorities across the EU using the Standardised Approach (SA).