EU Authority Opinion on Equivalence of Argentina's Prudential Requirements

The European Banking Authority has published an Opinion opining that the prudential supervisory and regulatory requirements in Argentina are equivalent to the EU's requirements as set out in the Capital Requirements. The EBA provided its Opinion and formal assessment for Argentina to the Commission in November 2018. However, the documents have only now been published, at the request of the Commission. An equivalence decision for Argentina by the European Commission was published in the Official Journal of the European Union on April 1, 2019. The equivalence decision means that EU banks may apply preferential risk weights and hold less regulatory capital for their exposures to Argentinian banks, investment firms, clearing houses, CCPs, exchanges as well as the Argentinian government, central bank and public bodies, including any intragroup exposures of EU subsidiaries of Argentinian banks. Such an equivalence decision under CRR is one of the factors that a national regulator must take into account when deciding whether to adopt a domestic equivalence decision on consolidated supervision under the Capital Requirements Directive (i.e. whether to exercise consolidated supervision under EU rules to non-EU parents).

View the Opinion.

View the EBA's assessment.

View details of the equivalence decision for Argentina.

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