AI Summary of Article 394 Reporting requirements
This regulation mandates that institutions report specific information regarding large exposures to their competent authorities. Such data must encompass the identity of clients or connected client groups, exposure values both pre- and post-credit risk mitigation, and details of any credit protection utilised. Institutions are required to disclose their 20 largest exposures, as well as those exceeding EUR 300 million, on a consolidated basis.
Moreover, similar reporting is expected for the 10 largest exposures to both institutions and shadow banking entities while also providing aggregate exposure data to shadow banking entities. Reports must be submitted at least semi-annually, and the European Banking Authority (EBA) is tasked with developing technical standards to identify shadow banking entities, factoring in international guidelines.
Article 394 Reporting requirements
1. Institutions shall report the following information to their competent authorities for each large exposure that they hold, including large exposures exempted from the application of Article 395(1):
(a) the identity of the client or the group of connected clients to which the institution has a large exposure;
(b) the exposure value before taking into account the effect of the credit risk mitigation, where applicable;
(c) where used, the type of funded or unfunded credit protection;
(d) the exposure value, after taking into account the effect of the credit risk mitigation calculated for the purposes of Article 395(1), where applicable.