Question ID
2026_7995
Legal act
Regulation (EU) No 575/2013 (CRR)
Topic
Credit risk
Article
127
Paragraph
1
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
Not applicable
Article/Paragraph
n.a.
Type of submitter
Other
Subject matter
Risk weight (RW) applicable to defaulted ADC and IPRE-Other exposures
Question

For defaulted ADC and IPRE-Other exposures, should the applicable risk weight (RW) remain 150%, consistent with the RW applied before they become defaulted, or should banks apply the risk weighting rules set out in Article 127(1) of the CRR3?

Background on the question

Performing ADC and IPRE-Other exposures - when the conditions set in Article 124(3) are not fulfilled - are assigned a risk weight of 150%. If these exposures become defaulted ones, it is unclear whether they should retain the 150% RW. The decision tree for RW assignment requires firstly identifying exposures as defaulted before categorizing them as exposures secured by mortgages on immovable property or as ADC exposures. With this background, should banks apply Article 127(1) of the CRR3 to non-performing ADC and IPRE-Other exposures, which mandates a 150% RW if specific credit risk adjustments are below 20%, and a 100% RW if such adjustments exceed 20%?

Submission date
Rejected publishing date
Rationale for rejection

This question has been rejected because the matter it refers to is the same of Q&A 2026_7938.

Status
Rejected question