Question ID
2013_155
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Market risk
Article
339, 340
Paragraph
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
N/A
Type of submitter
Investment firm
Subject matter
Scope of application of Articles 339 and 340 of Regulation (EU) No 575/2013 (CRR)
Question

Article 339 of Regulation (EU) No. 575/2013 starts with "In order to calculate own funds requirements against general risk all positions shall be weighted...". Does "all positions" also include positions in the banking book or are Articles 339 and 340 only valid for positions in the trading book?

Background on the question

Want certainty about the scope of application of Articles 339 and 340.

Submission date
Final publishing date
Final answer

Articles 339 and 340 of Regulation (EU) No. 575/2013 (CRR), which specify the calculation of own funds requirements against general risk for debt instruments as part of the determination of own fund requirements for market risk, only refer to positions in debt instruments booked in the trading book. 

According Article 92(3)(b) of the CRR, the notion of "position risk", used to determine the own fund requirements for positions in debt and equity instruments, is indeed applicable only to the trading book.

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.
Note to Q&A

Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR) and continues to be relevant.

Disclaimer

The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.