Article 126a(3) of the CRR mandates the EBA to draft guidelines specifying the credit risk-mitigating conditions that ADC exposures should have to be eligible for a 100% preferential risk weight.
As per Article 16(2) of the ESAs regulation (Regulation (EU) No 1093/2010, (EU) No 1094/2010 and (EU) No 1095/2010 of the European Parliament and of the Council), any guidelines developed by the ESAs shall be accompanied by an Impact Assessment (IA) annex which analyses 'the potential related costs and benefits' of the guidelines. Such annex shall provide the reader with an overview of the findings as regards the problem identification, the options identified to remove the problem and their potential impacts.
The EBA prepared the IA included in this consultation paper analysing the policy options considered when developing the guidelines. Given the nature of the study, the IA is qualitative in nature.
Problem identification and baseline scenario
Article 4(1), point 79, of the CRR introduces a
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