Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Credit risk
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:
Definition of exposure in non-significant business units and relating “significance” test

A) Can you please clarify how exposures in non-significant business units in Art. 150(1) (c) should be intended? B) Can you please clarify which are the criteria for such a “significant” test.

Background on the question:

Art. 150 (1) (c) of the CRR lacks of specific indications on how to interpret the concept of exposure in non-significant business units, as well as of the criteria to assess the “significance”. The interpretation proposed seems the only plausible also taking into account the guidelines provided in Q&A 2014_1678 where business units are treated in the same way as “type of exposures” and “exposure class” which clearly refer to the counterparty of the exposure.

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