Regulatory Alerts2025-01-01
Final Draft RTS on Structural FX Positions under Article 104c of the CRR
The European Banking Authority issued final draft Regulatory Technical Standards to harmonize the treatment of structural foreign exchange positions under Article 104c of the Capital Requirements Regulation. These standards transpose previous guidelines into binding rules, allowing institutions to exclude specific risk positions from foreign exchange own funds requirements if they deliberately hedge capital ratio sensitivity. The RTS clarify calculation methodologies, remove currency eligibility thresholds, and permit banks to consider only credit risk requirements when determining position neutrality to reduce operational burdens.
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