Consultation paper draft regulatory technical standards on assigning risk weights to specialised lending exposures under Article 153(9) of Regulation (EU) No 575/2013 (Capital Requirements Regulation–CRR)

The Capital Requirements Regulation (CRR) and the Capital Requirements Directive (CRD) set out prudential requirements for banks and other financial institutions which have been applied from 1 January 2014. Among others, the CRR contains specific mandates for the EB A to develop draft Regulatory Technical Standards (RTS) to specify how institutions shall take into account the following factors in assigning risk weights to specialised lending exposures: “financial strength, political and legal environment, transaction and/or asset characteristics, strength of the sponsor and developer, including any public private partnership income stream, and security package”. This consultation paper sets out the EBA proposal to fulfil this mandate.