On 6 August 2021, the European Commission issued a consultation a draft Implementing Decision 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).
The deadline for comments on the draft Implementing Decision is 3 September 2021. The draft Implementing Decision will come into force 20 days following its publication in the Official Journal of the EU. When the draft Implementing Decision comes into force, Implementing Decision 2014/908/EU will be repealed.
The third countries and territories set out in the draft 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).
