Large exposures

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, in particular developing regulatory instruments as mandated in Regulation (EU) No 575/2013.

Technical Standards, Guidelines & Recommendations

Technical standards

Implementing Technical Standards on Supervisory Reporting

These Implementing Technical Standards (ITS) aim at implementing uniform reporting requirements which are necessary to ensure fair conditions of competition between comparable groups of credit institutions and investment firms. Uniform requirements will ultimately make institutions more efficient and result in a greater convergence of supervisory practices.

Regulatory Technical Standards on the determination of the overall exposure to a client or a group of connected clients in respect of transactions with underlying assets

These Regulatory Technical Standards (RTS) aim at defining the conditions and methodologies used to determine the overall exposure to a client or group of connected clients resulting from a transaction with underlying assets and the risks inherent in the structure of the transaction itself.

Opinions, Reports and other Publications