Question ID:
Legal Act:
Directive 2013/36/EU (CRD)
Other topics
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
not applicable
Disclose name of institution / entity:
Type of submitter:
Credit institution
Subject Matter:
Countercyclical capital buffer (CCB) relevant exposures

Should sovereign and institutions exposures in default (under Article 112.j of Regulation (EU) No 575/2013) and exposures to institutions with a short-term credit assessment (under Article 112.n of Regulation (EU) No 575/2013) be excluded from the relevant exposures required for CCB purposes?

Background on the question:

Under Article 140 of the CRD, exposures to sovereigns and institutions are excluded. It is unclear whether exposures to sovereign and institution which are in default, with a short term credit assessment or exposures to institutions in non-equivalent countries (which are not treated as institutions due to the equivalency rules under Article 107.3 of Regulation (EU) No 575/2013) should be excluded from the list of relevant exposures for CCB. Exposures to institutions and sovereigns which are in default, exposures to institutions in non-equivalent countries or with a short term credit assessment do not appear to meet the rational for the CCB. In particular, the intention for CCB is to look at core credit activity in the economy, hence the rational for excluding exposures to sovereigns and institutions. This logic should also be applied to the aforementioned exposures.

Date of submission:
Published as Rejected Q&A
Rationale for rejection:

Please note that as part of adjustments to the Single Rulebook Q&A process, agreed by the EBA and the European Commission, it has been decided to reject outstanding questions submitted before 1 January 2020, when the Q&A process was updated as part of the last ESAs Review. In particular, the question that you have submitted has now regrettably been rejected and will not be addressed.

If you believe your question would still benefit from clarification, you are invited to resubmit your question, adapting it to reflect any legislative, regulatory or other relevant developments that may have occurred since the initial date of submission. The EBA will aim to address resubmitted questions as a matter of priority. When considering to resubmit, you are kindly requested to observe the updated admissibility criteria agreed in the context of the adjustment of the Q&A process, available in the Additional background and guidance for asking questions. We hope for your understanding.

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Rejected question