Legal note: According to para. 44 of the consultation paper and recital 1 of the RTS draft, exposures to financial institutions should not be treated as exposures to shadow banks as long as these financial institutions are supervised and approved in accordance with Article 119 (5) of the CRR and are subject to requirements comparable to those for institutions. These financial institutions are expressly not intended to be identified as shadow banks. We very much welcome this approach.
From a legal point of view, however, we would like to note that, in our opinion, this clear intention of the EBA is not yet evident without further ado from the wording of Article 1 para. 2 of the RTS draft. It only becomes clear in the overall view with the recitals. In order to prevent misinterpretations, we therefore suggest specifying Article 1 para. 2 of the RTS draft accordingly.