EBA publishes draft RTS on prudential consolidation methods, including approach for entities subject to step-in risk

Following the approval of the Risk Reduction Measure Package, EBA has revised the RTS for the purpose of alignment with the changes introduced in the CRR and CRD, focusing mainly on the appropriate methods of prudential consolidation for the calculation of CRR requirements.

In this alert you will read more on the methods of calculating capital requirements and also about BCBS Guidelines on identification and management of step‐in risk and about the EBA Guidelines on limits on exposures to shadow banking entities.