EBA updates methodology for assessing equivalence

The Capital Requirements Regulation (CRR) provides that certain risk exposures to entities located in third countries can be treated, for risk-weighting purposes, as exposures in EU Member States, provided that the third country’s prudential requirements are equivalent to those in the EU. The European Banking Authority (EBA) is required by the CRR to assist the Commission in preparing its Decisions on equivalence of prudential regimes. The methodology which the EBA uses to assess the regimes is based on two questionnaires.

The EBA has now published updated questionnaires to reflect provisions introduced by the revised prudential regulation in the EU. This includes recent amendments to CRD V and CRR2. These new questionnaires will replace the existing ones.

The new questionnaires maintain the same structure as the previous ones:

Emma Bond