Question
Is it permissible that exposures to NATO Communication and Information Agency are assigned a 0 % risk weight under Article 118(f) CRR?
Background on the question
Article 118 of Regulation (EU) No 575/2013 (CRR) states that certain international organisations listed therein shall be assigned a 0 % risk weight. It is unclear whether exposures to NATO Communication and Information Agency can be assigned a 0 % risk weight under the said article, as Q&A 968 states that exposures to international organisations not included in the exhaustive list of Article 118 CRR shall be treated as exposures to corporates (Article 122).
Answer
The question is rejected on the basis that it has already been addressed by the European Commission inQ&A 968(cat.1). That Q&A clarifies that exposures to international organisations not included in the exhaustive list of Article 118 of Regulation (EU) No 575/2013 (CRR) shall be treated as exposures to corporates (Article 122).Furthermore, in the case of intergovernmental organisations where the participating sovereigns provide guarantees, these guarantees may be taken into account in accordance with the requirements laid down in Part Three, Chapter 4 (‘Credit Risk Mitigation’) of the CRR.