+Guidelines on large exposures breaches and time and measures to return to compliance (EBA/GL/2021/09)
---+1. Compliance and reporting obligations
------+Status of these guidelines
---------+1. This document contains guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/2010. …
---------+2. Guidelines set the EBA ’s view of appropriate supervisory practices within the European System …
------+Reporting requirements
---------+3. According to Article 16(3) of Regulation (EU) No 1093/2010, competent authorities must notify …
---------+4. Notifications will be published on the EBA website, in line with Article 16(3) of Regulation …
---+2. Subject matter, scope and definitions
------+Subject matter
---------+5. These guidelines specify, in accordance with the mandate set out in Article 396(3) of Regulation …
---------+6. In addition, these guidelines specify additional information that should be provided to the …
------+Scope of application
---------+7. These guidelines apply in relation to the assessment by competent authorities of the exceptional …
---------+8. These guidelines do not apply to the cases set out in Article 395(5) of Regulation (EU) No …
------+Addressees
---------+9. These guidelines are addressed to competent authorities as defined in point (i) of Article 4(2) …
------+Definitions
---------+10. Unless otherwise specified, the terms used and defined in Regulation (EU) No 575/2013 and …
---+3. Implementation
------+Date of application
---------+11. These guidelines apply from 01.01.2022.
---+4. Exceptional cases of breaches of the large exposure limits, time and measures to return to compliance
------+12. Based on the information provided when reporting a breach of the large exposure limits of …
------+13. The competent authority should inform the institution of the time granted to resolve the breach …
------+4.1 Criteria to determine the exceptional cases referred to in Article 396(1) of Regulation (EU) No 575/2013
---------+14. A breach of the limits set out in Article 395(1) of Regulation (EU) No 575/2013 should always …
---------+15. In order to assess a situation in which an institution has exceeded the limits of Article …
---------+16. The competent authority should assess whether the breach of the limits of Article 395(1) of …
---------+17. If an institution reports a second breach during the last 12 months that concerns the same …
---------+18. If, during the last 12 months, an institution has already reported two breaches of the large …
---------+19. The competent authority should assess whether the breach would have been a foreseeable event …
---------+20. The competent authority should also consider whether the institution could have been in a …
---------+21. In cases where identical or similar breaches of other institutions occur that could be …
---------+22. The competent authority should assess whether the breach was caused by reasons beyond the …
---------+23. A breach caused by an inappropriate application or misinterpretation of the large exposures …
---------+24. In general, if the competent authority concludes that the breach does not fulfil the criteria …
------+4.2 Information to be provided to the competent authority in case of a breach of the large exposure limits
---------+25. When reporting the exposure value in excess of the large exposure limits of Article 395(1) of …
---------+26. The competent authority should request further information and explanations if it is not …
------+4.3 Criteria to determine the appropriate time to return to compliance with the limits of Article 395(1) of Regulation (EU) No 575/2013
---------+27. Following the assessment of the breach reported by the institution in accordance with Section …
---------+28. A competent authority should not grant an institution a period longer than 3 months to resolve …
---------+29. In cases where a competent authority decides to allow an institution a period longer than 3 …
---------+30. In any case, the time to return to compliance should not be longer than 1 year. Exceptionally …
---------+31. In order to decide the appropriate time to return to compliance, the competent authority should …
---------+32. The competent authority should take into account any previous breaches by the institution and …
---------+33. If an institution unduly delays the notification of a breach, the competent authority may …
---------+34. The competent authority should assess the reasons for the breach and assess the point in time …
---------+35. The competent authority might require and request additional information when the causes of the …
---------+36. The competent authority should consider whether the institution’s compliance with the …
---------+37. The competent authority should consider the adequacy of the risk management practices of the …
---------+38. The competent authority should take into account the type of counterparty and its …
---------+39. The competent authority should consider the measures already implemented by the institution …
------+4.4 Measures to be taken to ensure the timely return to compliance of the institution with the limits of Article 395(1) of Regulation (EU) No 575/2013
---------+40. When a competent authority has granted an institution a period longer than 3 months to return …
---------+41. The compliance plan should at least encompass the following: a. arrangements to reduce the …
---------+42. The measures proposed by an institution should include a description of any foreseeable risks …
---------+43. The competent authority should assess the appropriateness, sufficiency and feasibility of the …
---------+44. If the competent authority has any material concerns with regard to the measures, it should …
---------+45. The institution should inform the competent authority immediately in case some of the measures …
---------+46. The frequency and intensity of the competent authority’s monitoring should be adequate and …
---------+47. The competent authority should decide and communicate whether the institution should perform an …
---------+48. The competent authority should have in place a standard and documented procedure with clear …
---------+49. Institutions should ensure, in accordance with the EBA Guidelines on Internal Governance that …
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Guidelines on large exposures breaches and time and measures to return to compliance (EBA/GL/2021/09)

Guidelines on large exposures breaches and time and measures to return to compliance (EBA/GL/2021/09)

https://www.eba.europa.eu/legacy/regulation-and-policy/regulatory-activities/large-exposures/guidelines-large-exposures – PDF

1. Overview

,
1. Compliance and reporting obligations

1. Compliance and reporting obligations
2. Subject matter, scope and definitions

2. Subject matter, scope and definitions
3. Implementation

3. Implementation
4. Exceptional cases of breaches of the large exposure limits, time and measures to return to compliance

4. Exceptional cases of breaches of the large exposure limits, time and measures to return to compliance

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

Requirements

3. Related Standards

Standards
  • EBA - Published by the European Banking Authority at https://www.eba.europa.eu/