EBA's Final Report On Draft Technical Standards On The Identification Of A Group Of Connected Clients

On 20 December 2022, the European Banking Authority ("EBA") published the final report on its draft Regulatory Technical Standards on the identification of a group of "connected clients" under Article 4(4) of the Capital Requirements Regulation (Regulation (EU) No 575/2013) ("the RTS").

The RTS transfers sections of existing own-initiative EBA Guidelines ("GL") (in force since January 2019) into technical standard format. Those transferred sections essentially discuss the conditions required to form a group of connected clients, which concept is used in: the large exposures regime; categorisation of clients in the retail exposure class for the purposes of assessing credit risks; rating systems (development and application); criteria for STS securitisations qualifying for differentiated capital treatment; the SME supporting factor; and liquidity reporting in the context of stable funding. The GL will continue to provide guidance in its existing form on due