CEBS discusses objectives of large exposure regulation
The Committee of European Banking Supervisors (CEBS), which comprises various heads of central banks and senior regulators across the EU, has said counterparty credit quality should not matter when assessing the level of risk involved in large exposures.
The Committee said: “CEBS’s preliminary view is that, given the nature of unforeseen event risk, counterparty creditworthiness should not be reflected in these limits.”
The statement coincides with the committee’s announcement on June 15 that it would begin a public consultation on the regulation of large exposures. The consultation will consider issues such as the importance of counterparty credit
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