Updated 05/02/2025
In force

Initial Legal Act
Amendments (3)
There is currently no Level 2 legal act based on or specifying Article 215.
QA2014_803 - Credit risk
Status: Final
Updated: 26/03/2021
Art. 215(1)
QA2017_3621 - Large exposures
Status: Final
Answered: 20/11/2020
Art. 215(1)
QA2015_2306 - Credit risk
Status: Final
Updated: 26/03/2021
Art. 215(1), 215(2)
QA2017_3576 - Credit risk
Status: Final
Updated: 26/03/2021
Art. 215(1)(a)
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CRR ToolCapital Requirements Regulation (CRR)
Article 215

Article 215 - Regulation 575/2013 (CRR)

Attention! This article was amended after the current consolidated version was issued. The amendments apply since 01/01/2025. Please consult Regulation 2024/1623 to review the changes made to the article.

Article 215

Additional requirements for guarantees

1.   Guarantees shall qualify as eligible unfunded credit protection where all the conditions in Article 213 and all the following conditions are met:

(a)

on the qualifying default of or non-payment by the counterparty, the lending institution has the right to pursue, in a timely manner, the guarantor for any monies due under the claim in respect of which the protection is provided and the payment by the guarantor shall not be subject to the lending institution first having to pursue the obligor;

In the case of unfunded credit protection covering residential mortgage loans, the requirements in Article 213(1)(c)(iii) and in the first subparagraph of this point have only to be satisfied within 24 months;

(b)

the guarantee is an explicitly documented obligation assumed by the guarantor;

(c)

either of the following conditions is met:

(i)

the guarantee covers all types of payments the obligor is expected to make in respect of the claim;

(ii)

where certain types of payment are excluded from the guarantee, the lending institution has adjusted the value of the guarantee to reflect the limited coverage.

2.   In the case of guarantees provided in the context of mutual guarantee schemes or provided by or counter-guaranteed by entities listed in Article 214(2), the requirements in point (a) of paragraph 1 of this Article shall be considered to be satisfied where either of the following conditions is met:

(a)

the lending institution has the right to obtain in a timely manner a provisional payment by the guarantor that meets both the following conditions:

(i)

it represents a robust estimate of the amount of the loss, including losses resulting from the non-payment of interest and other types of payment which the borrower is obliged to make, that the lending institution is likely to incur;

(ii)

it is proportional to the coverage of the guarantee;

(b)

the lending institution can demonstrate to the satisfaction of the competent authorities that the effects of the guarantee, which shall also cover losses resulting from the non-payment of interest and other types of payments which the borrower is obliged to make, justify such treatment.