European Union: European Commission Publishes Secondary Implementing Decision On Third Country Equivalence For Purposes Of Treatment Of Exposures Under CRR

A European Commission Implementing Decision on the lists of third countries considered equivalent for the purposes of the treatment of exposures under the Capital Requirements Regulation ("CRR") has been published in the Official Journal of the EU on February 18.

Under the CRR, certain categories of exposures to entities located in third countries can benefit from more favourable prudential treatment if the Commission has determined that a third country's prudential supervisory and regulatory requirements are at least equivalent to those applied in the EU for the purposes of the treatment of exposures under the CRR. The latest Implementing Decision adds Australia, Hong Kong, Indonesia, Japan and South Korea to the list of third countries.

The Implementing Decision will enter into force on March 9.

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