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Application provision

1.1 This Part applies to every firm that is a CRR firm.



  1. (1) If a firm has a sovereign large exposures permission, the exposures specified in that permission are exempt from Article 395(1) of the CRR to the extent specified in that permission.
  2. (2) For the purposes of the sovereign large exposures permission, and in relation to a firm, the exposures referred to in (1) are limited to the following: 
    1. (a) asset items constituting claims on central banks in the form of required minimum reserves held at those central banks which are denominated in their national currencies; and 
    2. (b) asset items constituting claims on central governments in the form of statutory liquidity requirements held in government securities which are denominated and funded in their national currencies provided that, at the discretion of the PRA, the credit assessment of those central governments assigned by a nominated ECAI is investment grade.

Additional Notes

[Note: Art 400(2)(g)-(h) of the CRR]