in force 2025-01-01 MODIFIED+254 −104§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
Paragraph 1 no longer limits its scope to exposures with a residual maturity of more than three months, and the table it references is renumbered from Table 3 to Table 1, with the risk weight for credit quality step 2 changed from 50 % to 30 %.
Paragraph 2 replaces the reference to exposures of up to three months residual maturity with exposures having an original maturity of three months or less, adds coverage for exposures arising from the movement of goods across national borders with an original maturity of six months or less, and renumbers the referenced table from Table 4 to Table 2, while the risk weight percentages in that table remain the same as before.
Cited: Art. 120, v2
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 120
Exposures to rated institutions
1. Exposures to institutions with a residual maturity of more than three months for which a credit assessment by a nominated ECAI is available shall be assigned a risk weight in accordance with Table 3 1 which corresponds to the credit assessment of the ECAI in accordance with Article 136.
Table 3 1
Credit quality step 1 2 3 4 5 6
Risk weight 20 % 50 30 % 50 % 100 % 100 % 150 %
2. Exposures to institutions with an institution original maturity of up to three months residual maturity or less for which a credit assessment by a nominated ECAI is available and exposures which arise from the movement of goods across national borders with an original maturity of six months or less and for which a credit assessment by a nominated ECAI is available, shall be assigned a risk-weight risk weight in accordance with Table 4 2 which corresponds to the credit assessment of the ECAI in accordance with Article 136: 136.
Table 4 2
Credit quality step 1 2 3 4 5 6
Risk weight 20 % 20 % 20 % 50 % 50 % 150 %
3. The interaction between the treatment of short term credit assessment under Article 131 and the general preferential treatment for short term exposures set out in paragraph 2 shall be as follows:
(a) If there is no short-term exposure assessment, the general preferential treatment for short-term exposures as specified in paragraph 2 shall apply to all exposures to institutions of up to three months residual maturity;
(b) If there is a short-term assessment and such an assessment determines the application of a more favourable or identical risk weight than the use of the general preferential treatment for short-term exposures, as specified in paragraph 2, then the short-term assessment shall be used for that specific exposure only. Other short-term exposures shall follow the general preferential treatment for short-term exposures, as specified in paragraph 2;
(c) If there is a short-term assessment and such an assessment determines a less favourable risk weight than the use of the general preferential treatment for short-term exposures, as specified in paragraph 2, then the general preferential treatment for short-term exposures shall not be used and all unrated short-term claims shall be assigned the same risk weight as that applied by the specific short-term assessment.