1. The structural FX provision in Article 352(2) of Regulation (EU) No 575/2013 (CRR) is subject to various interpretations that have led to differences in its application both in EU Member States and across institutions. In order to ensure a harmonised approach, the EBA has produced these own-initiative guidelines on the practical implementation of the ‘structural FX’ provision contemplated in Article 352(2) of the CRR.
2. It is important to note that, even if these guidelines relate to the provision included in Article 352(2), which refers to the current market risk framework, they have been developed also considering changes to the market risk framework introduced in the revised Capital Requirements Regulation (CRR2), which builds on the new FRTB standards published by the Basel Committee on Banking Supervision (BCBS) in January 2019, and taking into account the structural FX treatment envisaged in those standards.
3. It should also be noted that these guidelines have been desig
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