Subject matter

These guidelines specify, in accordance with the mandate set out in Article 396(3) of Regulation (EU) No 575/2013, the criteria that competent authorities should use to assess the exceptional cases referred to in Article 396(1) of Regulation (EU) No 575/2013 and where a competent authority allows an institution to exceed the limits set out in Article 395(1) of Regulation (EU) No 575/2013. These guidelines also determine the criteria that competent authorities should use to determine the appropriate time for an institution to return to compliance with the large exposure limits of Article 395(1) of Regulation (EU) No 575/2013, and the measures to be taken to ensure the timely return to compliance with those limits.

In addition, these guidelines specify additional information that should be provided to the competent authority when reporting a breach of the large exposure limit in accordance with Article 396(1) of Regulation (EU) No 575/2013.