Options and National Discretions

The Directives 2006/48/EC and 2006/49/EC contain a large number of national discretions and options which may be applied on the basis of national circumstances. Competent authorities are required to disclose how they will exercise the options and discretions available in the CRD.

• 'Option' refers to a situation where competent authorities or Member States are given a choice on how to comply with a given provision selected from alternatives set out in the Directive. For example, national authorities have the option, in determining the risk weights for exposures to institutions, of using either the central government risk-weight method or the credit assessment based method.
  

• 'Discretion' or 'National Discretion' refers to a situation where competent authorities or Member States are given a choice as to whether to apply a given provision. For example, Member States may, at national discretion, impose sub-consolidation in cases where it is not required and, if they do so, they may set the conditions.

To see CEBS 'Options and National Discretions' Section click here.