Supervision release 2 March 2017

Revisions to Regulations and guidelines 25/2013 'Capital requirements calculation and large exposures' enter into force on 1 March 2017

The Financial Supervisory Authority has revised its Regulations and guidelines 'Capital requirements calculation and large exposures' (25/2013). The revisions enter into force on 1 March 2017.

  • In section 'Capital requirements for credit risk under the standardised approach', subsection 5.2.2 'Exposures to regional governments or local authorities', the list in the guideline (paragraph 5) has been supplemented by the Helsinki Region Environmental Services Authority municipal federation. Exposures to the Helsinki Region Environmental Services Authority municipal federation can be treated similarly to exposures to the central government in connection with the calculation of capital requirements for credit risk under the standardised approach.
  • The European Banking Authority (EBA) published on 11 October 2016 Guidelines on corrections to modified duration for debt instruments, as referred to in Article 340(3)(2) of Regulation (EU) No 575/2013. The Guidelines are implemented in Finland by adding to section 8 'Capital requirement for market risk' of Regulations and guidelines 25/2013 FIN-FSA's recommendation on compliance with the EBA Guidelines.
  • The EBA published on 24 November 2016 Guidelines on implicit support for securitisation transactions. The Guidelines are addressed to competent authorities and to supervised entities that are sponsor institutions or originator institutions in securitisation transactions. The Guidelines are implemented in Finland by adding to section 9 'Capital requirement for securitisation' of Regulations and guidelines 25/2013 FIN-FSA's recommendation on compliance with the EBA Guidelines.

For further information, please contact

  • Risk Expert Matti Suni, matti.suni(at)fiva.fi, tel. +358 10 831 5259
  • Risk Expert and Juhana Virkkunen, juhana.virkkunen(at)fiva.fi, tel. +358 10 831 5523.

Appendix

The corresponding Finnish-language supervision release was published on 1 March 2017.