Question ID
2014_1103
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Credit risk
Article
116
Paragraph
(3)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
N/A
Type of submitter
Other
Subject matter
What day count convention is to be used in Regulation (EU) No 575/2013 (CRR) Art.116 (3)
Question

What day count convention is to be used in Regulation (EU) No 575/2013 (CRR) Article 116 (3) ?

Background on the question

There are some different day count conventions discribing a 'three month runtime', What exact convention is to use in the sense of Regulation (EU) No 575/2013 (CRR) Article 116 (3) ?

Submission date
Final publishing date
Final answer

In the absence of Regulation (EU) No 575/2013 (CRR) prescribing any day count convention, the actual exact number of days should be used when an institution needs to convert into days a specific number of weeks, months or years referenced in the CRR.


For the purpose of Article 116(3) CRR, "three months or less" means within three calendar months, or, if converted into days, within the exact number of days of these three calendar months.


By way of example, a loan granted on 1 January must have an original maturity date on or before 31 March of the same year in order to qualify for the 20% risk weight. Similarly, a loan granted on 25 August must have an original maturity date on or before 24 November of the same year in order to qualify for the 20% risk weight.

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

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