17 April 2018
On the 17 April 2018, European Banking Authority (EBA), launched a Consultation on its Guidelines regarding the exposures to be associated with high risk. The Guidelines, which should be implemented by 1 January 2019, specify which types of exposures, other than those mentioned in Article 128 (2) CRR, are to be associated with particularly high risk and under which circumstances. The Guidelines also clarify the notion of investments in venture capital firms and private equity.
In particular, the Consultation document is seeking views on the exposure classes that could contain high-risk items. In addition, it specifies the method, which institutions can use in order to inform supervisors about the occurrence of high-risk items in their portfolios, which are considered as structurally different from common exposures of the same asset class. It furthermore includes clarification regarding the notion of investments in venture capital firms and private equity. The aim is to provide guidance and ensure harmonisation regarding the type of exposures considered as investments in venture capital firms and private equity.
The deadline for providing comments to the EBA’s Exposures Consultation is the 17 July 2018. A public hearing is scheduled to take place in advance of the deadline on 4 May 2018 at the EBA premises (more information is available here).
The European Covered Bond Council (ECBC) is the platform that brings together covered bond market participants including covered bond issuers, analysts, investment bankers, rating agencies and a wide range of interested stakeholders.
