Single Rulebook Q&A

Question ID: 2016_2823
Legal act : Regulation (EU) No 575/2013 (CRR) as amended
Topic : Liquidity risk
Article: 11
Article/Paragraph : 11(1)(d)(ii)
COM Delegated or Implementing Acts/RTS/ITS/GLs: Delegated Regulation (EU) 2015/61 - DR with regard to liquidity coverage requirement
Type of submitter: Credit institution
Subject matter : Third countries considered to have supervisory arrangements equivalent to EU

Article 11 of Delegated Act 2015/61 specifies the conditions under which covered bonds can be considered buffer L2A eligible. For covered bonds issued by credit institutions in third countries, Article 11(1)(d)(ii) requires that “supervisory arrangements applied in the third country must be at least equivalent to those applied in the Union”. Could you please indicate us if a list of such countries will be made available?

Background on the question:

Which third countries can be considered as having supervisory arrangements similar to UE, in relation to Article 11(1)(d)(ii) requirements.

Date of submission: 08/07/2016
Published as Final Q&A: 04/08/2017
EBA answer:

Commission Implementing Decision 2014/908/EU, as last amended by Implementing Decision 2016/2358/EU, has for sole purpose to determine equivalence for the purposes of assigning risk weights under Articles 107, 114, 115, 116 and 142 of Regulation (EU) No 575/2013 (CRR), and thus is not applicable for the purpose of Article 11(1)(d)(ii) of the Delegated Regulation (EU) No 2015/61.

For the specific purpose of Article 11(1)(d)(ii) of the Delegated Regulation (EU) No 2015/61, an additional assessment on a case-by-case basis of the equivalence of the third country by the bank and its supervisor is necessary.


This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Financial Stability, Financial services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Status: Final Q&A
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