(7)Article 391 of Regulation (EU) No 575/2013 allows institutions established in the Union to treat an exposure to a private or public undertaking of a third country as an exposure to an institution for the purposes of Part Four of that Regulation, provided that the undertaking would be considered an ‘institution’ as defined in Article 4(1), point (3), of that Regulation, if it were established in the Union, and provided that it has been authorised in a third country that applies prudential supervisory and regulatory requirements at least equivalent to those applied in the Union.