4. Criteria for the identification of subsets of sectoral exposures

Subject to Sections 5 and 7, when applying an SyRB in accordance with Article 133(4) and (5)(f) of Directive 2013/36/EU, relevant authorities should identify a subset or subsets of sectoral exposures by combining one element or subelement from each of the following dimensions of exposures:

• a. type of debtor or counterparty sector;
• b. type of exposure; and
• c. type of collateral

The list of elements, including their breakdown, under each dimension is specified in Section 6.

In addition to the minimum set of dimensions referred to in paragraph 11, relevant authorities may, where appropriate, duly justified and proportionate in order to prevent and mitigate macroprudential or systemic risks, as referred to in Article 133(1) of Directive 2013/36/EU, further combine the selected elements or subelements of the dimensions referred to in paragraph 11 with one element or subelement from any of the following correlated subdimensions, as follows:

• a. economic activity (for the element ‘legal person’ of the dimension ‘type of debtor or counterparty sector’);
• b. risk profile (for the dimension ‘type of exposure’); and
• c. geographical area (for the dimension ‘type of collateral’).

The list of elements under each subdimension, including their breakdown, is specified in Section 6.

By way of derogation from paragraph 12, relevant authorities may combine, if deemed necessary, two elements from the subdimension ‘risk profile’ provided that the risks stemming from the targeted subset of sectoral exposures are systemically relevant according to Section 5.

Examples of possible combinations of elements and subelements of the dimensions and subdimensions referred to in this section are included in Annex 2.