Financial Supervision: Consultation launched by European Banking Authority on criteria to assess breaches of the large exposure limits
The European Banking Authority (EBA) has launched today a consultation on the criteria that competent authorities should use to assess a breach of the large exposure limits of Article 395(1) of the Capital Requirements Regulation (CRR).
The consultation paper also details the criteria to determine whether the breach was a rare event; whether it was beyond the institution’s control; the period of time; and the measures for institutions to return to compliance with those limits (no more than three months).
The consultation will remain open until 17 May 2021, and the eventual Guidelines will apply from 1 March 2022.
Read the EBA’s press release here for more information.