05 April 2022
The European Banking Authority (EBA) today launched a survey for banks on their experiences with the application of the so-called infrastructure supporting factor in accordance with the Capital Requirement Regulation (CRR 2). Besides assessing the application of the supporting factor, the survey aims at providing valuable information on the materiality of infrastructure project loans across EU banks, irrespective of whether credit institutions specialise in infrastructure lending or not. The survey runs until 27 May 2022.
Article 501a of the CRR 2 introduces a reduction by 25% of the own fund requirements for specific corporate exposures, the so-called infrastructure supporting factor. The eligible exposures must be to entities that were created specifically to finance or operate physical structures or facilities, systems and networks that provide or support essential public services. They must also meet additional conditions, which imply a certain minimum level of quality or maximum riskiness of the exposures.
The original intention of CRR 2 was to have the supporting factor in place from 28 June 2021. However, in response to the COVID-19 pandemic, the application was frontloaded to 27 June 2020 in the so-called “quick-fix” CRR package.
National Competent Authorities (NCA) will disseminate the survey directly to the largest banks. However, any bank willing to participate in the survey can download the excel file, which also includes instructions, and submit the template filled on a best effort basis to their respective NCAs by 27 May 2022. It is important to note that the information requested should be submitted at the highest level of consolidation in the European Economic Area.
The contacts of the NCA representatives can be requested via email at datacollection[at]eba.europa.eu
A virtual Industry Roundtable to discuss the application of the infrastructure supporting factor will take place on 21 April 2022 at 15:00 CEST. If you wish to participate in the roundtable, please register here by 19 April at 16:00 CEST
Franca Rosa Congiu