Stellungnahme DK zum EBA Consultation paper “On draft regulatory technical standards on the method for the identification of the geographical location of the relevant credit exposures under Article 140(7) of the CRD“ (EBA/CP/2013/35)
From our point of view it is not entirely clear what the ‘place of the debtor’ is in the case of a derivative position. The definition in Article 1 para. 5 refers to the residence of the issuer of the financial instrument or the counterparty. This would conflict with the calculation of capital requirements for derivative exposures which are geared to the underlying exposure. Therefore it should be clarified that in case of a derivative position the ‘place of the debtor’ shall be the place where the issuer of the underlying financial instrument is located.
Regarding specialized lending where the cash flow generating property or asset is movable (e.g. ships) it should be specified whether the exposure shall be deemed to be located in the Country of the developer, of the freighter, of the shipper or of the charterer. Furthermore it should be clarified where specialized lending exposures shall be deemed to be located if these exposures encompass locations in different countries. […]