Question ID
2014_1351
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
10 largest exposures to institutions and unregulated financial sector entities
Question

How to count 10 largest exposures to institutions? If a reporting institution has 7 large exposures to institutions, does it have to include into report its next 3 largest (but "non large") exposures (10 alltogether) or 10 largest (but "non large") exposures (17 alltogether)? the same applies to reporting of exposures to unregulated financial sector entities.

Background on the question

Par. 2 of the Article 394 requires reporting of 10 largest exposures to institutions and unregulated financial sector entities (on a consolidated basis). It is however not clear enough how to count those 10 exposures. Does that mean that only 20rows must be populated in LE4 (10 for each type of oxposures)?

Submission date
Final publishing date
Final answer

Article 394 (1) of Regulation (EU) No 575/2013 (CRR) requires that institutions report every large exposure (defined in Article 392 of CRR as exposures to clients or groups of connected client where its value is equal to or exceeds 10 % of the eligible capital of the institution).

Furthermore, according to Article 394 (2) of 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. These 10 "largest exposures" might at the same time be "large exposures" as defined in Article 392 of the CRR.

With reference to the above mentioned example, in case a reporting institution has 7 "large exposures" to institutions, it has to add to its report the next 3 largest (but "non-large") exposures. As a result, the report would altogether contain 10 exposures to institutions of which 7 at the same time qualify as large exposures according to Article 392 of CRR. The same approach is applied to report the 10 largest exposures to unregulated financial sector entities.

For further information see Q&As 2013_441, 2014_1256 and 2014_1366

Status
Final Q&A
Answer prepared by
Answer prepared by the EBA.

Disclaimer

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