Subject matter, scope and definitions
Subject matter
In accordance with Article 123(1) of Regulation (EU) No 575/2013 as amended by Regulation (EU) 2024/1623 (opens EUR-Lex in a new tab) (CRR), these guidelines specify proportionate diversification methods under which an exposure is to be considered as one of a significant number of similar exposures as specified in point (c) of Article 123(1) of Regulation (EU) No 575/2013.
Scope of application
Competent authorities should apply these guidelines in accordance with the scope of application of Article 123(1) of Regulation (EU) No 575/2013.
Addresses
These guidelines are addressed to competent authorities as defined in Article 4, point (2)(i) of Regulation (EU) No 1093/2010 and to financial institutions as defined in Article 4(1) of Regulation (EU) No 1093/2010.
Definitions
Unless otherwise specified, terms used and defined in Regulation (EU) No 575/2013 have the same meaning in the guidelines. Additionally, the following definitions apply:
Eligible retail exposure | Any exposure that fulfils the requirements set out in Article 123(1), points (a), (b) and (d) of Regulation (EU) No 575/2013. |
Securitised exposure | Any exposure underlying a securitisation, for which exposures arising from a position in this securitisation are risk weighted under Chapter 5 of Part Three, Title II of Regulation (EU) No 575/2013. |
Non-securitised exposure | Any exposure that is risk weighted under Chapter 2 of Part Three, Title II of Regulation (EU) No 575/2013. For the sake of clarity this includes exposures that form part of a securitised portfolio where significant risk transfer has not been achieved. |