Credit risk – BaFin consultation regarding positions associated with particular high risk

By Dr Michael Jünemann, Johannes Wirtz

05-2019

German regulator BaFin released its new draft circular on exposures associated with high risk.

Germany’s Federal Financial Supervisory Authority (BaFin), on 11 May 2019, published a draft circular (German) and started a consultation process on exposures to be associated with high risk under Article 128 section 3 of the Capital Requirements Regulation (CRR).

Through the circular, BaFin intends to comprehensively adopt the corresponding EBA-guidelines (EBA/GL/2019/01) on high risk exposures into its regulatory practice. Both the circular and EBA-guidelines will take effect on 1 July 2019. EBA’s consultation process regarding the guidelines (EBA/CP/2018/03) was conducted last year between April and July and its results are available online.

Submissions regarding the draft circular will be accepted - also by e-mail - until 24 May 2019. The comments will be published on BaFin’s website.

The authors thank Sascha Lucas for his support.