Following the publication of the guidelines on the application of Article 122a of the Capital Requirements Directive (CRD), on 31 December 2010, the European Banking Authority (EBA) received a substantial number of questions from competent authorities and market participants seeking further clarification on how the guidelines should be interpreted.
Furthermore, the clarifications provided by this Q&A are of particular importance to credit institutions, as non-compliance with certain paragraphs of Article 122a could lead to additional risk weights on securitisation holdings.
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