The European Banking Authority (EBA) has published its report on the review of the large exposures regime as laid down in the Capital Requirements Regulation.  In the report the EBA:

  • considers it appropriate to strengthen the large exposures capital base by including only Tier 1 capital instead of allowing a proportion of Tier 2 capital, as is currently the case;
  • recommends removing some of the exemptions in the large exposures regime and highlights generally the importance of reducing exemptions and discretions where appropriate so as to further enhance alignment with the international standards produced by the Basel Committee on Banking Supervision (BCBS); and
  • considers other aspects of the large exposures regime that could be aligned with the BCBS standards.

View EBA calls for a simplified and more harmonised large exposures regime, 24 October 2016