- Question ID
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2014_1020
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Credit risk
- Article
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501
- Paragraph
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/
- Subparagraph
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/
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
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/
- Type of submitter
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Competent authority
- Subject matter
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Country of incorporation of SMEs and application of the supporting factor
- Question
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Does the supporting factor 0,7619 apply only to SMEs that are incorporated within the EU?
- Background on the question
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Article 501 of Regulation (EU) No 575/2013 does not specify exactly whether the supporting factor can be applied to "non-EU" SMEs as well as SMEs incorporated in the EU. One of the criteria for the use of the supporting factor is that the annual turnover of the SME should not exceed EUR 50 million as it is stated in the Recommendation 2003/361/EC, which applies only for the EU SMEs.
- Submission date
- Final publishing date
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- Final answer
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Regulation (EU) No 575/2013 does not allow any form of discrimination against SMEs not located in the EU. The supporting factor shall be applied to any SME fulfilling the requirements provided for in Article 501 regardless of the country of incorporation of the SME.
DISCLAIMER
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General 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
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Final Q&A
- Answer prepared by
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Answer prepared by the European Commission because it is a matter of interpretation of Union law.
- Note to Q&A
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Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).
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.