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

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.

Submission date
Final publishing date
Final 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.

Disclaimer:

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
Answer prepared by
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A

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.