On 4 October 2021, there was published in the Official Journal of the EU (OJ) Commission Implementing Decision 2021/1753 on the equivalence of the  supervisory and regulatory requirements of certain third countries and territories for the purposes of the treatment of exposures in accordance with the Capital Requirements Regulation (CRR).

Article 391 of the CRR, as amended by the CRR II Regulation, allows the Commission to adopt implementing decisions as to whether a third country applies prudential supervisory and regulatory requirements at least equivalent to those applied in the EU for the purpose of determining the treatment of exposures under the CRR’s large exposures regime. The Commission has decided to consolidate all the provisions on the equivalence of third countries’ regulatory requirements for the purposes of the treatment of exposures in accordance with the CRR into a single decision.

The third countries and territories set out in the Implementing Decision are deemed equivalent for the following purposes:

  • Equivalence of requirements applied to credit institutions for the purposes of Article 107(4) of the CRR (capital requirements for credit risk).
  • Equivalence of requirements applied to investment firms for the purposes of Article 107(4) of the CRR (capital requirements for credit risk).
  • Equivalence of requirements applied to exchanges for the purposes of Article 107(4) of the CRR (capital requirements for credit risk).
  • Equivalence of requirements applied to exposures to central governments, central banks, regional governments, local authorities and public sector entities for the purposes of Articles 114, 115 and 116 of the CRR (risk weights, exposures to regional governments or local authorities, exposures to public sector entities).
  • Equivalence of requirements to credit institutions and investment firms for the purposes Article 142 of the CRR (internal ratings based approach).
  • Equivalence of requirements applied to institutions for the purposes of Article 391 of the CRR (definition of an institution for large exposures purposes).

The Implementing Decision enters into force on the twentieth day following its publication in the OJ (24 October 2021).