emendrix

Art. 267

Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex

Maximum risk weight for senior securitisation positions: look-through approach

1 change recorded across 1 event, newest first.

in force 2019-01-01 MODIFIED+1,750 −207

Amended by Regulation (EU) 2017/2401 32017R2401 · Regulation (EU) 2019/876 32019R0876

applies from: unchanged

Sources disagree — the text comparison found this change; the EU's own amendment metadata does not list it. Both are shown; neither is overruled.

The article's heading changes from a rule about using ECAI credit assessments to determine securitisation position risk weights to a heading about a maximum risk weight for senior securitisation positions using a look-through approach.

The prior single-sentence text on ECAI credit assessment endorsement is replaced by four numbered paragraphs describing how an institution with knowledge of underlying exposure composition may assign a maximum risk weight to a senior securitisation position, including rules for Standardised Approach, IRB Approach, and mixed pools, a definition of expected losses for IRB purposes, and a rule on using the lower risk weight compared to the floors in Articles 259 to 264.

Cited: Art. 267, v1 · Art. 267, v2

text before / after

texts differ too much for an inline diff; shown separately

before (02013R0575-20180101)

Article 267
Use of Credit Assessments by ECAIs
Institutions may use credit assessments to determine the risk weight of a securitisation position only where the credit assessment has been issued or has been endorsed by an ECAI in accordance with Regulation (EC) No 1060/2009.

after (02013R0575-20190101)

Article 267
Maximum risk weight for senior securitisation positions: look-through approach
1. An institution which has knowledge at all times of the composition of the underlying exposures may assign the senior securitisation position a maximum risk weight equal to the exposure-weighted-average risk weight that would be applicable to the underlying exposures as if the underlying exposures had not been securitised.
2. In the case of pools of underlying exposures where the institution uses exclusively the Standardised Approach or the IRB Approach, the maximum risk weight of the senior securitisation position shall be equal to the exposure-weighted-average risk weight that would apply to the underlying exposures under Chapter 2 or 3, respectively, as if they had not been securitised.
In the case of mixed pools the maximum risk weight shall be calculated as follows:
(a) where the institution applies the SEC-IRBA, the Standardised Approach portion and the IRB Approach portion of the underlying pool shall each be assigned the corresponding Standardised Approach risk weight and IRB Approach risk weight respectively;
(b) where the institution applies the SEC-SA or the SEC-ERBA, the maximum risk weight for senior securitisation positions shall be equal to the Standardised Approach weighted-average risk weight of the underlying exposures.
3. For the purposes of this Article, the risk weight that would be applicable under the IRB Approach in accordance with Chapter 3 shall include the ratio of:
(a) expected losses multiplied by 12,5 to
(b) the exposure value of the underlying exposures.
4. Where the maximum risk weight calculated in accordance with paragraph 1 results in a lower risk weight than the risk-weight floors set out in Articles 259 to 264, as applicable, the former shall be used instead.