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07 May 2014

EBA consults on treatment of equity exposures under IRB approach


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The EBA launched a consultation on draft RTS to specify the treatment of equity exposures under the internal ratings-based (IRB) approach. These RTS will be part of the Single Rulebook aimed at enhancing regulatory harmonisation in the banking sector in the EU.


These RTS propose that competent authorities grant institutions a temporary exemption from IRB treatment of certain equity exposures if such exemption was being applied on the last day of application of the Capital Requirements Directive I (CRD I) – 31 December 2007.
 
This exemption, which was introduced in CRD I to partly relieve institutions' capital requirement  for equity exposures under the IRB approach, will end on 31 December 2017 and is deemed to have immaterial impact in most institutions.  
 
Comments to this consultation can be sent to the EBA by 7 July 2014. A public hearing will take place at the EBA premises on 27 May 2014 from 10:00 to 12:00 hours UK time. The EBA must submit the draft RTS to the Commission by 30 June 2014.
 
 
 


© EBA


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