The European Banking Authority (EBA) published its Opinion, whereby it concluded that the supervisory and regulatory framework applicable to credit institutions in Turkey and New Zealand can be regarded as equivalent to that applied in the Union.
According to the Capital Requirements Regulation (CRR), under well-defined conditions certain categories of exposures to entities located in countries outside the EU can benefit from the same preferential treatment applied to EU Member States' exposures in terms of capital requirements. This would imply that EU credit institutions can apply preferential risk weights to relevant exposures to entities located in those countries.
In particular, such preferential treatment is only available if and when the European Commission adopts an Implementing Decision determining that the country's prudential supervisory and regulatory requirements are at least equivalent to those applied in the EU.
Against this background, and within its mandate to promote supervisory convergence, the EBA was asked by the European Commission to provide technical advice on the equivalence of the legal and supervisory regimes in countries outside the EU.
Following this assessment, the EBA provided its opinion to the Commission in December 2015 that the supervisory and regulatory framework applicable to credit institutions as documented in domestic laws and regulations in Turkey and New Zealand can be regarded as equivalent to those applied in the Union.
EBA Opinion on CRR Third Country Equivalence of NZ and Turkey
Annex to EBA Opinion on equivalence of Turkey and New Zealand
Hover over the blue highlighted
text to view the acronym meaning
over these icons for more information
No Comments for this Article