Mutual recognition of options and national discretions

The table below provides information on whether the NBB as competent authority responsible for the exercise of supervision on a consolidated basis (consolidating supervisor) recognises the treatment applied by the different EU Member States as host countries with respect to the paragraphs of directive 2006/48/EC subject to mutual recognition.

The following areas of Directive 2006/48/EC are subject to mutual recognition:

Dir. 2006/48/EC Denomination Description Recognition by NBB
Art. 81 Para. 3 ECAI recognition process If an ECAI has been recognised as eligible by the competent authorities of a Member State, the competent authorities of other Member States may recognise that ECAI as eligible without carrying out their own evaluation process. Yes
Art. 82 Para. 2 ECAI mapping When the competent authorities of a Member State have made a determination as to the mapping of an eligible ECAI's credit assessments, the competent authorities of other Member States may recognise that determination without carrying out their own determination process.

Yes
Art. 89 Para 1 Partial use equity exposures Member States may allow partial use for equity exposures which have been allowed for this treatment in other Member States. No
Art. 97 Para. 3 ECAI recognition process (securitisation positions) The competent authorities shall recognise an ECAI as eligible for determining the risk weight of a securitisation position only if they are satisfied as to its compliance with certain requirements and that it has a demonstrated ability in the area of securitisation. Yes
Art. 98 Para. 2 ECAI mapping (securitisation positions) When the competent authorities of a Member State have made a determination as to the mapping of an eligible ECAI's credit assessments the competent authorities of other Member States may recognise that determination without carrying out their own determination process. Yes
Art. 154 Para. 1
(second subsentence)
Transitional provision (SA) - days past due (PSE, corporate, retail) Competent authorities which do not set a number of days past due in relation to exposures to counterparties situated in their own territory may set a higher number of days for exposures to counterparties situated in the territories of other Member States, the competent authorities of which have exercised that discretion. The specific number shall fall within 90 days and such figures as the other competent authorities have set for exposures to such counterparties within their territory. Yes
Art. 154 Para. 7
(third sentence)
Transitional provision (IRB) - days past due (corporate exposures) For corporate exposures to such counterparts situated in the territories of other Member States, the competent authorities shall set a number of days past due which is not higher than the number set by the competent authority of the respective Member State. Yes
Annex VI Part 1 Para. 50 Mortgages on residential property - conditional waiver When the discretion contained in point 49 (waiver of certain condition) is exercised by the competent authorities of a Member State, the competent authorities of another Member State may allow their credit institutions to assign a risk weight of 35 % to such exposures fully and completely secured by mortgages on residential property. Yes
Annex VI Part 1 Para. 57
(referring to ND in Para. 51)
Risk-weighting exposures secured by mortgages on commercial real estate When the discretion contained in point 51 is exercised by the competent authorities of one Member State, the competent authorities of another Member State may allow their credit institutions to risk weight at 50% such exposures fully and completely secured by mortgages on commercial property. Yes
Annex VI Part 1 Para. 57
(referring to ND in Para. 52)
Risk-weighting exposures secured by shares in Finnish housing companies When the discretion contained in point 52 is exercised by the competent authorities of one Member State, the competent authorities of another Member State may allow their credit institutions to risk weight at 50% such exposures fully and completely secured by mortgages on commercial property. Yes
Annex VI Part 1 Para. 57
(referring to ND in Para. 53)
Risk-weighting eligible property leasing transactions When the discretion contained in point 53 is exercised by the competent authorities of one Member State, the competent authorities of another Member State may allow their credit institutions to risk weight at 50% such exposures fully and completely secured by mortgages on commercial property. Yes
Annex VI Part 1 Para. 60 Mortgages on commercial real estate - conditional waiver When the discretion contained in point 58 (waiver of certain condition) is exercised by the competent authorities of a Member State, the competent authorities of another Member State may allow their credit institutions to assign a risk weight of 50% to such exposures fully and completely secured by mortgages on commercial property. Yes
Annex VI Part 1 Para. 78 Third country CIU - recognition process If a competent authority approves a third country CIU as eligible, then a competent authority in another Member State may make use of this recognition without conducting its own assessment. Yes
Annex VII Part 4 Para. 48 Definition of Default for Retail and PSE (IRB) For retail and PSE exposures to such counterparts situated in the territories of other Member States, the competent authorities shall set a number of days past due which is not higher than the number set by the competent authority of the respective Member State. Yes
Annex VIII Part 1 Para. 16 Residential real estate property waiver The competent authorities of a Member State, which do not use the waiver may recognise as eligible residential real estate property recognised as eligible in another Member State by virtue of the waiver. Yes
Annex VIII Part 1 Para. 19 Commercial real estate property waiver The competent authorities of a Member State may recognise as eligible collateral commercial real estate property recognised as eligible collateral in another Member State by virtue of the waiver provided for in point 17. Yes
Annex VIII Part 3 Para. 75 Alternative treatment for real estate collateral The competent authorities, which do not authorise an alternative treatment for real estate collateral, may authorise credit institutions to assign the risk weights permitted under this treatment in respect of exposures collateralised by residential real estate property of commercial real estate property respectively located in the territory of those Member States the competent authorities of which authorise this treatment subject to the same conditions as apply in that Member State. Yes

From this section access is also provided to an overview on the EBA website of the exercise of the explicit mutual recognition clauses in the different Member States – from the point of view of home supervisor and host supervisor respectively. (see the corresponding table on the EBA homepage).

If the country in a column represents a home supervisor, then the table provides information on whether that home supervisor applies mutual recognition to the treatment applied by each country in the rows as host supervisor in respect to the area under review.

If the country in a row represents a host supervisor, then the table provides information on whether each country in the columns as home supervisors applies mutual recognition to the treatment applied by the host supervisor in respect to the area under review.