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Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance

article  325ap

CELEX:  02013R0575-20250629

1. Risk weights for the sensitivities to equity and equity repo rate risk factors shall be specified for each bucket in Table 8 pursuant to the delegated act referred to in Article 461a: Table 8 Bucket number Market capitali-sation Economy Sector Risk weight for equity spot price Risk weight for equity repo rate 1 Large Emerging market economy Consumer goods and services, transportation and storage, administrative and support service activities, healthcare, utilities 55 % 0,55 % 2 Telecommunications, industrials 60 % 0,60 % 3 Basic materials, energy, agriculture, manufacturing, mining and quarrying 45 % 0,45 % 4 Financials including government-backed financials, real estate activities, technology 55 % 0,55 % 5 Advanced economy Consumer goods and services, transportation and storage, administrative and support service activities, healthcare, utilities 30 % 0,30 % 6 Telecommunications, industrials 35 % 0,35 % 7 Basic materials, energy, agriculture, manufacturing, mining and quarrying 40 % 0,40 % 8 Financials including government-backed financials, real estate activities, technology 50 % 0,50 % 9 Small Emerging market economy All sectors described under bucket numbers 1, 2, 3 and 4 70 % 0,70 % 10 Advanced economy All sectors described under bucket numbers 5, 6, 7 and 8 50 % 0,50 % 11 Other sector 70 % 0,70 % 12 Large market cap, advanced economy indices 15 % 0,15 % 13 Other indices 25 % 0,25 %
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance

article  325ap

CELEX:  02013R0575-20250629

2. For the purposes of this Article, what constitutes a small and a large market capitalisation shall be specified in the regulatory technical standards referred to in Article 325bd(7).
3. For the purposes of this Article, EBA shall develop draft regulatory technical standards to specify what constitutes an emerging market and to specify what constitutes an advanced economy. EBA shall submit those draft regulatory technical standards to the Commission by 28 June 2021. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 Text with EEA relevance

article  325ap

CELEX:  02013R0575-20250629

4. When assigning a risk exposure to a sector, institutions shall rely on a classification that is commonly used in the market for grouping issuers by sector. Institutions shall assign each issuer to one of the sector buckets in Table 8 and shall assign all issuers from the same industry to the same sector. Risk exposures from any issuer that an institution cannot assign to a sector in such a manner shall be assigned to bucket 11 in Table 8. Multinational or multi-sector equity issuers shall be assigned to a particular bucket on the basis of the most material region and sector in which the equity issuer operates.