+Alternative approach for exposures to central governments
---+Scenario CG 1: Alternative approach – partial use
---+Scenario CG 2: Alternative approach – used for all directly dependent entities
---+Scenario CG 3: Alternative approach – applicable on ‘first/second level’, not below
---+Scenario CG 4: ‘Horizontal connections’ on the ‘second level’
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Alternative approach for exposures to central governments
To illustrate the possible scenarios, the following general scenario is used: the central government directly controls four legal persons (A, B, C and D). Entities A and B themselves have direct control over two subsidiaries each (A1 /A2 , B1 /B2 ). The reporting institution has exposures to the central government and all of the entities shown.
1. Panoramica
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Regolamentazione |
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Scenario CG 1: Alternative approach – partial use
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The reporting institution could carve out only one group (‘central government/A/all controlled or dependent entities of A’) and keep the general treatment for the rest (‘central government/B, C and D/all controlled or dependent entities of B’):
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Scenario CG 2: Alternative approach – used for all directly dependent entities
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Scenario CG 2: Alternative approach – used for all directly dependent entities
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Scenario CG 3: Alternative approach – applicable on ‘first/second level’, not below
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In the scenarios CG1 and CG2, entities A, B, C and D constitute the ‘second level’, i.e. the level directly below the central government (‘first level’). Here, a carve -out from the overall group of connected clients is possible. However, entities A1 , A2 , B1 and B2 are only indirectly connected to the central government. A carve-out on their level is not possible (e.g. both A1 and A2 need to be included in the group ‘central government/A’):
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Scenario CG 4: ‘Horizontal connections’ on the ‘second level’
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In a variation on the general scenario above, entities A and B are economically dependent (payment difficulties for B would be contagious to A): Assuming that the reporting institution uses the alternative approach only in part, as described in scenario CG 1 above, the following groups of connected clients need to be considered:
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1.1 Riferimenti
1.2 Requisiti identificati
1.3 Standard correlati
2. Requisiti identificati
Requisiti
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Requisito |
3. Standard correlati
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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