in force 2025-01-01 MODIFIED+759 −64§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
The provision is now split into numbered paragraphs 1 and 2, with paragraph 1 restating the domestic-versus-foreign-currency credit assessment rule using 'shall not' instead of 'cannot' and referring to 'an exposure' rather than 'another exposure'.
Paragraph 2 expands the multilateral development bank exception by adding loans guaranteed against convertibility and transfer risk, by requiring the bank to be one listed in Article 117(2), and by adding a new subparagraph limiting use of the domestic-currency credit assessment to the guaranteed part of a foreign-currency exposure that is guaranteed against convertibility and transfer risk, with the unguaranteed part risk weighted using a credit assessment referring to the foreign-currency item.
Cited: Art. 141, v2 · Art. 141, v1
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 141
Domestic and foreign currency items
1. A credit assessment that refers to an item denominated in the obligor's obligor’s domestic currency cannot shall not be used to derive a risk weight for another an exposure on that same obligor that is denominated in a foreign currency.
When 2. By way of derogation from paragraph 1, where an exposure arises through an institution's institution’s participation in a loan that has been extended by by, or has been guaranteed against convertibility and transfer risk by, a multilateral development bank whose listed in Article 117(2) the preferred creditor status of which is recognised in the market, the credit assessment on the obligors' obligor’s domestic currency item may be used to derive a risk weight for an exposure on that same obligor that is denominated in a foreign currency.
For the purposes of the first subparagraph, where the exposure denominated in a foreign currency is guaranteed against convertibility and transfer risk, the credit assessment on the obligor’s domestic currency item may only be used for risk weighting purposes. purposes on the guaranteed part of that exposure. The part of that exposure that is not guaranteed shall be risk weighted based on a credit assessment on the obligor that refers to an item denominated in that foreign currency.