Regulatory Alerts2025-01-01
Final Report on Guidelines on specification of types of exposures to be associated with high risk under Article 128(3) of Regulation (EU) No 575/2013
The European Banking Authority issued guidelines to specify which types of exposures, beyond those explicitly listed in Article 128(2) of the CRR, must be classified as items associated with particularly high risk. These guidelines require institutions to assign a 150% risk weight to exposures that carry a high risk of loss due to structural differences from common exposures within their original asset class, such as speculative investments or certain specialized lending projects. Additionally, the document mandates that banks notify their national competent authorities of any high-risk exposures identified under Article 128(3) that fall outside the specific cases outlined in the guidelines to ensure consistent regulatory application.
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