CEBS has published its second report on the use of national options and discretions under the CRD. CEBS rushed through the advice on eight specific discretions at the Commission’s request and did not have time to consult on them. However, in most cases, CEBS could not reach a decision and wants to consider the discretions further. The paper covers the following NDs (national discretions):  

  • 15 (percentages to calculate potential future credit exposures);
  • 25 (treatment of public sector entities);  
  • 32 (list of high-risk items);  
  • 41 and 45 (other unfunded credit protection for dilution risk);  
  • 49 (other physical collateral);  
  • 51 (receivables as collateral);
  • 82 (specific risk requirement for covered bonds);  
  • 102, 103, 104, 105, 110, 111, 136, 137, 138, 140, 141, 142 and 143 (specific favourable treatment of real estate); and  
  • option set out in Annex VII, Part 2, point 14 of the amended CAD not analysed by CEBS in its first advice (one-day floor for "other short term exposures").