Article 501 | CRR | Regulation 575/2013

Article 501 - Adjustment of risk-weighted non-defaulted SME exposures

Attention! This article will be amended on 01/01/2025. Please consult Regulation 2024/1623 to review the changes that will be made to the article.

Article 501

Adjustment of risk-weighted non-defaulted SME exposures

Institutions shall adjust the risk-weighted exposure amounts for non-defaulted exposures to an SME (RWEA), which are calculated in accordance with Chapter 2 or 3 of Title II of Part Three, as applicable, in accordance with the following formula:

where:

RWEA*

the RWEA adjusted by an SME supporting factor; and

E* is either of the following:

(a)

the total amount owed to the institution, its subsidiaries, its parent undertakings and other subsidiaries of those parent undertakings, including any exposure in default, but excluding claims or contingent claims secured on residential property collateral, by the SME or the group of connected clients of the SME;

(b)

where the total amount referred to in point (a) is equal to 0, the amount of claims or contingent claims against the SME or the group of connected clients of the SME that are secured on residential property collateral and that are excluded from the calculation of the total amount referred to in that point.

For the purposes of this Article:

(a)

the exposure to an SME shall be included either in the retail or in the corporates or secured by mortgages on immovable property classes;

(b)

an SME is defined in accordance with Commission Recommendation 2003/361/EC ( 39 ); among the criteria listed in Article 2 of the Annex to that Recommendation only the annual turnover shall be taken into account;

(c)

institutions shall take reasonable steps to correctly determine E* and obtain the information required under point (b).

( 39 ) Commission Recommendation 2003/361/EC of 6 May 2003 concerning the definition of micro, small and medium-sized enterprises (OJ L 124, 20.5.2003, p. 36).

PART ONE - GENERAL PROVISIONS (Article 1-24)

PART TWO - OWN FUNDS AND ELIGIBLE LIABILITIES (Article 25-91)

PART THREE - CAPITAL REQUIREMENTS (Article 92-386)

PART FOUR - LARGE EXPOSURES (Article 387-403)

PART FIVE - EXPOSURES TO TRANSFERRED CREDIT RISK (Article 404-410)

PART SIX - LIQUIDITY (Article 411-428az)

PART SEVEN - LEVERAGE (Article 429-429g)

PART SEVEN A - REPORTING REQUIREMENTS (Article 430-430c)

PART EIGHT - DISCLOSURE BY INSTITUTIONS (Article 431-455)

PART NINE - DELEGATED AND IMPLEMENTING ACTS (Article 456-464)

PART TEN - TRANSITIONAL PROVISIONS, REPORTS, REVIEWS AND AMENDMENTS (Article 465-520)

TITLE I - TRANSITIONAL PROVISIONS (Article 465-501b)

CHAPTER 1 - Own funds requirements, unrealised gains and losses measured at fair value and deductions (Article 465-482)

CHAPTER 2 - Grandfathering of capital instruments (Article 483-491)

CHAPTER 3 - Transitional provisions for disclosure of own funds (Article 492)

CHAPTER 4 - Large exposures, own funds requirements, leverage and the Basel I Floor (Article 493-501b)Article 493 - Transitional provisions for large exposures Q&A Article 494 - Transitional provisions concerning the requirement for own funds and eligible liabilities Article 494a - Grandfathering of issuances through special purpose entities Q&A Article 494b - Grandfathering of own funds instruments and eligible liabilities instruments Q&A Article 494c - Grandfathering of senior securitisation positions Article 495 - Treatment of equity exposures under the IRB Approach RTSQ&A Article 495b - Transitional arrangements for specialised lending exposures Article 495c - Transitional arrangements for leasing exposures as a credit risk mitigation technique Article 496 - Own funds requirements for covered bonds [repealed]Article 497 - Own funds requirements for exposures to CCPs IA Article 498 - Exemption for Commodities dealers Article 499 - Leverage ITSQ&A Article 500 - Adjustment for massive disposals Q&A Article 500a - Temporary treatment of public debt issued in the currency of another Member State Q&A Article 500b - Temporary exclusion of certain exposures to central banks from the total exposure measure in view of the COVID-19 pandemic Q&AGL Article 500c - Exclusion of overshootings from the calculation of the back-testing addend in view of the COVID-19 pandemic GL Article 500d - Temporary calculation of the exposure value of regular-way purchases and sales awaiting settlement in view of the COVID-19 pandemic GL Article 501 - Adjustment of risk-weighted non-defaulted SME exposures Q&AGL Article 501a - Adjustment to own funds requirements for credit risk for exposures to entities that operate or finance physical structures or facilities, systems and networks that provide or support essential public services Q&AGL Article 501b - Derogation from reporting requirements

TITLE II - REPORTS AND REVIEWS (Article 501c-519b)

TITLE IIA - IMPLEMENTATION OF RULES (Article 519c-519f)

TITLE III - AMENDMENTS (Article 520)

PART ELEVEN - FINAL PROVISIONS (Article 521)

Metadata

Level 2 legal acts

Related documents

Article 501 - Adjustment of risk-weighted non-defaulted SME exposures

Table of contents