+Annex
---+Groups of connected clients based on control
------+Scenario C 1: Exceptional case (no single risk exists despite the existence of control)
---+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’
---+Establishing interconnectedness based on economic dependency
------+Scenario E1: Main case
------+Scenario E3: Overlapping groups of connected clients
------+Scenario E4: Chain of dependency
------+Scenario E5: Reporting institution as source of funding (no grouping requirement)
---+Relation between interconnectedness through control and interconnectedness through economic dependency
------+dependency)
------+dependency)
------+Scenario C/E 3: Downstream contagion
------+Scenario C/E 4: Upstream contagion
---+Control and management procedures for identifying connected clients
------+Scenario Mm 1: Limits to the identification of a chain of contagion
---+B A
---+A A B
---+B B

Annex

The scenarios included in this annex illustrate the application of Commission Delegated Regulation (EU) 2024/1728, as well as the guidelines to groups of connected clients falling under the definition in Article 4(1)(39) of Regulation (EU) No 575/2013, from the perspective of the reporting institution.

1. Visão geral

,
Groups of connected clients based on control

Groups of connected clients based on control
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.
Establishing interconnectedness based on economic dependency

Establishing interconnectedness based on economic dependency
Relation between interconnectedness through control and interconnectedness through economic dependency

Scenario C/E 1: Combined occurrence of control and economic dependency (one-way
Control and management procedures for identifying connected clients

Control and management procedures for identifying connected clients
B A

B A
A A B

A A B
B B

B B

1.1 Referências

1.2 Requisitos identificados

1.3 Normas relacionadas

2. Requisitos identificados

Requisitos

3. Normas relacionadas

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