Question ID
2014_1366
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Supervisory reporting - Large Exposures
Article
394
Paragraph
2
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Draft ITS on Supervisory Reporting of Institutions
Article/Paragraph
Reporting on large exposures
Type of submitter
Competent authority
Subject matter
Reporting of 10 largest exposures to institutions (correct counting in a case where 2 clients in a group of connected clients are institutions)
Question

How should an institution count "top 10 exposures to institutions" in a case of an exposure to a group of connected clients in which an institution is a parent and there are at least 2 institutions in this group? a) As 1 (of 10) exposure to institutions – because a group of connected clients counts as one exposure when counting top 10 (no matter how many institutions there are in this group) b) As 2 (of 10) exposures to institutions - because there are two institutions in the group of connected clients with a parent institution.

Background on the question

Unclear guidelines

Submission date
Final publishing date
Final answer
According to Article 394 (2) of Regulation (EU) No 575/2013 (CRR) an institution shall report its 10 largest exposures on a consolidated basis to institutions as well as its 10 largest exposures on a consolidated basis to unregulated financial sector entities. The exposure of a group of connected clients itself counts as one of the 10 largest exposures to institutions or unregulated financial sector entities independent of the actual number of individual clients being institutions or unregulated financial sector entities and being members of this group. Option (a) (see Question) is the correct way to count the exposures.
Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

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.