Frequently asked questions on the supervisory framework for measuring and controlling large exposures

September 2016

The Basel Committee today issued frequently asked questions on the global supervisory framework for measuring and controlling large exposures. When the Committee published the revised Supervisory framework for measuring and controlling large exposures in April 2014, it noted that by 2016 it would review the appropriateness of setting a large exposure limit for exposures to qualifying central counterparties (QCCPs) related to clearing activities and the need for a specific treatment for interbank exposures. After completing the observation period, the Committee has decided not to modify the framework.  As a result, the framework, which will take effect from 1 January 2019, will:

  • exempt from the large exposure limit exposures to QCCPs related to central clearing; and
  • apply the large exposure limit to interbank exposures (ie no exemption will apply).

The publication also includes clarifications on some paragraphs of the standard, pursuant to the Committee's objective of promoting consistent global implementation of the requirements.