Large exposures and structural measures
The core aim of the large exposures regime is to act as a backstop to prevent an institution from incurring disproportionately large losses as a result of the failure of an individual client or group of connected clients due to the occurrence of unforeseen events. The objective of ensuring that risks arising from large exposures to individual clients or groups of connected clients are kept to an acceptable level is part of the overarching principles of prudential supervision, which are to ensure continued financial stability, maintain confidence in financial institutions and protect consumers, in particular depositors. The EBA has done extensive work regarding the review of the large exposures regime and continues to work to ensure a harmonised application across the EU.
An EU legal framework for structural measures is under development after the publication of the report of the high-level group on possible reforms to the structure of the EU banking sector (aka "Liikanen report") and the European Commission proposal on banking structural reform published on 29 January 2014. However, structural measures adopted at a national level can already have an impact on the large exposures regime when trading entities are ring-fenced within a banking group. In that context, the EBA shall provide an Opinion on such structural measures adopted at national level.
Technical Standards, Guidelines & Recommendations
Opinions, Reports and other Publications