EBA updates lists of regional governments and local authorities (RGLAs) and public sector entities (PSEs) for the calculation of capital requirements

The European Banking Authority (EBA) published today the updated list of regional governments and local authorities (RGLAs) that may be treated as central governments (CGs), as well as the list of public sector entities (PSEs) that may be treated as RGLAs or CGs for the calculation of capital requirements, in accordance with the EU Capital Requirements Regulation (CRR). 

List of regional governments and local authorities

The list of RGLAs 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 previous version, the updated list includes amendments to the regional governments and local authorities in Austria, Finland, the Netherlands and Sweden. 

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.

List of public sector entities

The list of PSEs includes the PSEs that are treated as regional governments, local authorities or central governments under the Standardised Approach (SA) due to their reduced risk level. As a result of this treatment, exposures to the PSEs included in the list will qualify for the same risk weight as their respective regional government, local authority or central government.

Compared to the previous version, the updated list includes amendments to the PSEs in Greece, Germany, Luxembourg, Malta, Portugal, Slovenia and Slovakia and updates to the names of PSEs in Denmark and Spain. 

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 PSEs can, 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).