Supervisory reporting: large exposures - CSSF FAQ

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Supervisory reporting: large exposures - CSSF FAQ

January 2015

CSSF issued answers to two frequently asked questions in relation to notification threshold for information relating to large exposures applicable at individual level.

The FAQ issued by the CSSF on 23 January 2015 addresses two issues in relation to notification threshold for information relating to large exposures applicable at individual level.

The questions are about specifications introduced by CSSF Circular 14/593 on Supervisory reporting requirements applicable to credit institutions as from 2014 and more specifically by point 9.

The first question deals with the distinction that must be done between risks taken on “institutions” and risks taken on “clients other than institutions”.

For risks taken on “Institutions” the bank should notify all risks taken on the same client (or a group of connected clients), where the amount is greater than or equal to the lower of the two following amounts:

  • 10% of own funds or
  • EUR 25 million for risks taken on "institutions”.

For risks taken on “clients other than institutions” the bank should notify all risks taken on the same client (or a group of connected clients), where the amount is greater than or equal to the lower of the two following amounts:

  • 10% of own funds or
  • EUR 12,5 million for risks taken on "clients other than institutions”.

The second answer confirms that the thresholds mentioned in point 9 of the CSSF Circular 14/593 is only applicable at individual level.

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