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Document 02013R0575-20240709
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (Text with EEA relevance)
Consolidated text: Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (Text with EEA relevance)
Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012 (Text with EEA relevance)
This consolidated text may not include the following amendments:
Amending act | Amendment type | Subdivision concerned | Date of effect |
---|---|---|---|
32024R1623 | Modified by | part 3 title (subdivision) II chapter 3 section 4 subsection 3 | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 36 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 3a | 01/01/2025 |
32024R1623 | Modified by | article 325aj Text | 01/01/2025 |
32024R1623 | Modified by | article 153 paragraph 1 point (iii) | 01/01/2025 |
32024R1623 | Modified by | article 425 paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 144 paragraph 1 point (h) | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 174 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 153 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 3 unnumbered paragraph 2 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 325as table 9 Text | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 383o | 01/01/2025 |
32024R1623 | Modified by | article 113 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 27 paragraph 1 point (a) point (v) | 01/01/2025 |
32024R1623 | Modified by | article 153 title | 01/01/2025 |
32024R1623 | Modified by | article 325bi paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 332 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 28 | 01/01/2025 |
32024R1623 | Modified by | article 325q paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 495g | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 54 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 20 | 01/01/2025 |
32024R1623 | Modified by | article 208 paragraph 3 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 5 | 01/01/2025 |
32024R1623 | Modified by | article 438 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 5a | 01/01/2025 |
32024R1623 | Modified by | article 279a paragraph 3 unnumbered paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 506c | 01/01/2025 |
32024R1623 | Modified by | article 383i | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 325ba paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | part 3 title (subdivision) II chapter 3 section 6 subsection 4 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52i | 01/01/2025 |
32024R1623 | Modified by | article 325bf paragraph 6 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 273 paragraph 1 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 104c | 01/01/2025 |
32024R1623 | Modified by | article 285 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 166 paragraph 10 | 01/01/2025 |
32024R1623 | Modified by | article 129 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 5 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325am paragraph 1 table 7 table column Text | 01/01/2025 |
32024R1623 | Modified by | article 116 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 59 | 01/01/2025 |
32024R1623 | Modified by | article 47c paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 273b title | 01/01/2025 |
32024R1623 | Modified by | article 325be paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 325t paragraph 5 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 438 point (da) | 01/01/2025 |
32024R1623 | Modified by | article 429f paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 11 | 01/01/2025 |
32024R1623 | Modified by | article 325ah paragraph 1 table 4 Text | 01/01/2025 |
32024R1623 | Modified by | article 143 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 219 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52a | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 325 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 325b paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 36 paragraph 1 point (k) point (v) | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 207 paragraph 4 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 22 | 01/01/2025 |
32024R1623 | Modified by | article 325ax paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 338 | 01/01/2025 |
32024R1623 | Modified by | article 134 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 2 unnumbered paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 1b | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 433a paragraph 1 point (b) point (xvi) | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 220 paragraph 2 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 325ak table 6 Text | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | part 3 title (subdivision) IV chapter 5 | 01/01/2025 |
32024R1623 | Modified by | article 235a | 01/01/2025 |
32024R1623 | Modified by | article 229 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 122a | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 4 point (e) | 01/01/2025 |
32024R1623 | Modified by | part 3 section 4 subsection -1 | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 154 paragraph 1 point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 129 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 215 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 325be paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 204 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 383e | 01/01/2025 |
32024R1623 | Modified by | article 291 paragraph 5 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 3 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 122 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 119 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph 4 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 104a paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 500c | 01/01/2025 |
32024R1623 | Modified by | article 495c | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 3 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 178 paragraph 3 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 223 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 89 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 155 | 01/01/2025 |
32024R1623 | Modified by | article 325ae paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 133 | 01/01/2025 |
32024R1623 | Modified by | article 325ad paragraph 3 Text | 01/01/2025 |
32024R1623 | Modified by | article 227 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 154 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 501 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 201 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325bf paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 16 | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 231 | 01/01/2025 |
32024R1623 | Modified by | article 121 | 01/01/2025 |
32024R1623 | Modified by | article 429c paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 337 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 383v | 01/01/2025 |
32024R1623 | Modified by | article 166 paragraph 8a | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 433a paragraph 1 point (b) point (xiv) | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 123a | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 1d | 01/01/2025 |
32024R1623 | Modified by | article 89 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 84 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 132c paragraph 2 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 433c paragraph 2 point (eb) | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 85 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 493 paragraph 3 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 221 paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52c | 01/01/2025 |
32024R1623 | Modified by | article 139 paragraph 2 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 85 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 18 paragraph 7 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 224 paragraph 1 table 3 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 60 | 01/01/2025 |
32024R1623 | Modified by | article 252 point (b) Text | 01/01/2025 |
32024R1623 | Modified by | article 112 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 505 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 5b | 01/01/2025 |
32024R1623 | Modified by | article 198 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 446 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 78b | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 152 | 01/01/2025 |
32024R1623 | Modified by | article 501 paragraph 2 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 383 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 132b paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 177 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 221 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 433c paragraph 2 point (ea) | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 152 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 402 paragraph 2 sentence | 01/01/2025 |
32024R1623 | Modified by | article 224 paragraph 1 table 1 | 01/01/2025 |
32024R1623 | Modified by | article 92a paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 221 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 428 paragraph 1 point (k) | 01/01/2025 |
32024R1623 | Modified by | article 402 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 166 paragraph 8c | 01/01/2025 |
32024R1623 | Modified by | article 383t | 01/01/2025 |
32024R1623 | Modified by | article 383l | 01/01/2025 |
32024R1623 | Modified by | article 325t paragraph 6 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 167 | 01/01/2025 |
32024R1623 | Modified by | article 143 paragraph 3 unnumbered paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 18 paragraph 8 sentence | 01/01/2025 |
32024R1623 | Modified by | article 501a paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 277a paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 273a paragraph 3 unnumbered paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 430b | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 126 | 01/01/2025 |
32024R1623 | Modified by | article 92 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 point (da) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52 | 01/01/2025 |
32024R1623 | Modified by | article 13 paragraph 1 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52b | 01/01/2025 |
32024R1623 | Modified by | article 215 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 141 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52g | 01/01/2025 |
32024R1623 | Modified by | article 455 | 01/01/2025 |
32024R1623 | Modified by | article 94 paragraph 3 unnumbered paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 127 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 179 paragraph 1 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 171 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 172 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 113 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 150 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325bh paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 166 paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 228 | 01/01/2025 |
32024R1623 | Modified by | article 433c paragraph 2 point (da) | 01/01/2025 |
32024R1623 | Modified by | article 325bd paragraph 5a | 01/01/2025 |
32024R1623 | Modified by | article 158 paragraph 9 | 01/01/2025 |
32024R1623 | Modified by | article 47c paragraph 4 sentence | 01/01/2025 |
32024R1623 | Modified by | article 494d | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 120 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 386 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 5a | 01/01/2025 |
32024R1623 | Modified by | article 325bi paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 152 paragraph 3 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 92 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 381 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 235 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 10 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 495a | 01/01/2025 |
32024R1623 | Modified by | article 150 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 37 | 01/01/2025 |
32024R1623 | Modified by | article 325ax paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 352 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 383u | 01/01/2025 |
32024R1623 | Modified by | article 36 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 144 | 01/01/2025 |
32024R1623 | Modified by | article 325 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 220 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 107 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 193 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 5 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph 2 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 58 | 01/01/2025 |
32024R1623 | Modified by | article 325bo paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 26a | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75f | 01/01/2025 |
32024R1623 | Modified by | article 348 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 92 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 429 paragraph 5 unnumbered paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 sentence | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 325t paragraph 1 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph -1 | 01/01/2025 |
32024R1623 | Modified by | part 3 title (subdivision) II chapter 4 section 3 subsection 1 title | 01/01/2025 |
32024R1623 | Modified by | article 172 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325s paragraph 1 Text | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 1 point (aa) | 01/01/2025 |
32024R1623 | Modified by | article 383w | 01/01/2025 |
32024R1623 | Modified by | article 19 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 1 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 116 paragraph 4 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 145 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 2 unnumbered paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | title (subdivision) III | 01/01/2025 |
32024R1623 | Modified by | article 158 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 8 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 495 | 01/01/2025 |
32024R1623 | Modified by | article 382 paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 402 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 6 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 126 | 01/01/2025 |
32024R1623 | Modified by | article 221 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325bf paragraph 6 unnumbered paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 273a paragraph 3 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 2 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 9 | 01/01/2025 |
32024R1623 | Modified by | article 36 paragraph 1 point (k) point (vi) | 01/01/2025 |
32024R1623 | Modified by | article 158 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 438 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 166 title | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 2 unnumbered paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 8a | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 178 title | 01/01/2025 |
32024R1623 | Modified by | article 159 | 01/01/2025 |
32024R1623 | Modified by | article 49 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 233 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 3 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 4 | 01/01/2025 |
32024R1623 | Modified by | article 220 title | 01/01/2025 |
32024R1623 | Modified by | article 383f | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 217 | 01/01/2025 |
32024R1623 | Modified by | article 447 point (aa) | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 55 | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 78a | 01/01/2025 |
32024R1623 | Modified by | article 96 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 506d | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52e | 01/01/2025 |
32024R1623 | Modified by | article 149 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 383p | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 155 | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 1 point (h) | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 5 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 128 | 01/01/2025 |
32024R1623 | Modified by | article 325ax paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75c | 01/01/2025 |
32024R1623 | Modified by | article 445a | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 325v paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 132a paragraph 3 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 18 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1c | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 78 | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 325ba paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 114 | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (j) | 01/01/2025 |
32024R1623 | Modified by | article 429a paragraph 1 point (da) | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 2 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 8 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 163 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 383q | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 27 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 170 paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 151 | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 1a | 01/01/2025 |
32024R1623 | Modified by | article 383a | 01/01/2025 |
32024R1623 | Modified by | article 325ab paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 177 paragraph 2a | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 117 paragraph 1 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 104b paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 183 title | 01/01/2025 |
32024R1623 | Modified by | article 495d | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 47c paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 5 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 383k | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 1 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 382 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 178 paragraph 1 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 12 | 01/01/2025 |
32024R1623 | Modified by | article 94 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 169 paragraph 3 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 104b paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 449a | 01/01/2025 |
32024R1623 | Modified by | article 72b paragraph 3 unnumbered paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 429c paragraph 3 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | annex I | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75d | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 158 paragraph 8 | 01/01/2025 |
32024R1623 | Modified by | article 20 paragraph 1 unnumbered paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 111 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 56 | 01/01/2025 |
32024R1623 | Modified by | article 325ak unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 236 | 01/01/2025 |
32024R1623 | Modified by | article 154 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 400 paragraph 1 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 112 point (k) | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 6 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 107 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 4 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 394 paragraph 2 unnumbered paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 226 | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 1 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 18 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 104 | 01/01/2025 |
32024R1623 | Modified by | article 325t paragraph 6 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 113 paragraph 6 unnumbered paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75 | 01/01/2025 |
32024R1623 | Modified by | article 325be paragraph 2a | 01/01/2025 |
32024R1623 | Modified by | article 279a paragraph 1 point (a) sentence | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 60 paragraph 1 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 5 sentence | 01/01/2025 |
32024R1623 | Modified by | article 447 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 495h | 01/01/2025 |
32024R1623 | Modified by | article 123 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52f | 01/01/2025 |
32024R1623 | Modified by | article 325 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 19 paragraph 2 sentence | 01/01/2025 |
32024R1623 | Modified by | article 153 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 120 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 35 | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 383r | 01/01/2025 |
32024R1623 | Modified by | article 433a paragraph 1 point (c) point (i) | 01/01/2025 |
32024R1623 | Modified by | article 434 | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 495b | 01/01/2025 |
32024R1623 | Modified by | article 325ax paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 451 paragraph 1 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 139 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 325ba paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 6 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 107 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 383d | 01/01/2025 |
32024R1623 | Modified by | article 150 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 201 paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 429c paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 274 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 449b | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1b | 01/01/2025 |
32024R1623 | Modified by | article 143 paragraph 3 unnumbered paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 201 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 383z | 01/01/2025 |
32024R1623 | Modified by | article 154 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 430a paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 465 | 01/01/2025 |
32024R1623 | Modified by | article 208 paragraph 3 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 201 paragraph 1 point (fa) | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 5 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 383b | 01/01/2025 |
32024R1623 | Modified by | article 102 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 3 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 70 paragraph 1 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 383c | 01/01/2025 |
32024R1623 | Modified by | article 194 paragraph 10 | 01/01/2025 |
32024R1623 | Modified by | article 87 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 108 | 01/01/2025 |
32024R1623 | Modified by | article 383s | 01/01/2025 |
32024R1623 | Modified by | article 150 paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52h | 01/01/2025 |
32024R1623 | Modified by | article 166 paragraph 8b | 01/01/2025 |
32024R1623 | Modified by | article 94 paragraph 2 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 208 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 438 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 2 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 153 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 1c | 01/01/2025 |
32024R1623 | Modified by | article 119 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 273b paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 20a | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75e | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 1 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 383g | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 74 | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 325as table 9 Text | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 6 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 325bh paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 74a | 01/01/2025 |
32024R1623 | Modified by | article 46 paragraph 1 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 181 paragraph 2 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 501a paragraph 1 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 180 paragraph 1 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 456 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 26 | 01/01/2025 |
32024R1623 | Modified by | article 18 paragraph 6 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 163 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 325u paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 216 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 383x | 01/01/2025 |
32024R1623 | Modified by | article 430a paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 325bf paragraph 6 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325ai paragraph 1 Text | 01/01/2025 |
32024R1623 | Modified by | article 433c paragraph 2 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 447 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 point (db) | 01/01/2025 |
32024R1623 | Modified by | article 385 | 01/01/2025 |
32024R1623 | Modified by | article 274 paragraph 6 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 113 paragraph 6 unnumbered paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 94 paragraph 3 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 273 paragraph 3 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 94 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 170 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 129 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 383h | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 153 | 01/01/2025 |
32024R1623 | Modified by | article 224 paragraph 1 table 2 | 01/01/2025 |
32024R1623 | Modified by | article 110a | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 361 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 174 sentence | 01/01/2025 |
32024R1623 | Modified by | article 104b paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 402 paragraph 2 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 62 unnumbered paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 52d | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 154 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 5a | 01/01/2025 |
32024R1623 | Modified by | article 138 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 20 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 89 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325am paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 20 paragraph 1 unnumbered paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 15 | 01/01/2025 |
32024R1623 | Modified by | article 126a | 01/01/2025 |
32024R1623 | Modified by | article 48 paragraph 1 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1 point (h) | 01/01/2025 |
32024R1623 | Modified by | article 351 | 01/01/2025 |
32024R1623 | Modified by | article 144 paragraph 1 point (f) | 01/01/2025 |
32024R1623 | Modified by | article 143 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 210 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 325a paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 197 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 429f paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 429c paragraph 6 unnumbered paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 236a | 01/01/2025 |
32024R1623 | Modified by | article 433 | 01/01/2025 |
32024R1623 | Modified by | article 361 unnumbered paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 199 paragraph 4 point (b) | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 223 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 429 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 48 paragraph 1 point (b) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 382 paragraph 4b | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 325ad paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 106 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 2 point (j) | 01/01/2025 |
32024R1623 | Modified by | article 400 paragraph 2 point (i) | 01/01/2025 |
32024R1623 | Modified by | article 325az paragraph 2 unnumbered paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 4a | 01/01/2025 |
32024R1623 | Modified by | article 495f | 01/01/2025 |
32024R1623 | Modified by | article 84 paragraph 1 unnumbered paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 104a paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 225 | 01/01/2025 |
32024R1623 | Modified by | article 88b | 01/01/2025 |
32024R1623 | Modified by | article 124 | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 382a | 01/01/2025 |
32024R1623 | Modified by | article 325bh paragraph 1 point (i) | 01/01/2025 |
32024R1623 | Modified by | part 3 title (subdivision) II chapter 4 section 6 | 01/01/2025 |
32024R1623 | Modified by | article 501a paragraph 1 point (o) | 01/01/2025 |
32024R1623 | Modified by | article 173 paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 433a paragraph 1 point (b) point (xv) | 01/01/2025 |
32024R1623 | Modified by | article 325x paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 5 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 129 paragraph 3 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 402 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 325ak table 6 table column Text | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 3 unnumbered paragraph 2 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 285 paragraph 7a | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 325j paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 224 paragraph 1 table 4 | 01/01/2025 |
32024R1623 | Modified by | article 384 | 01/01/2025 |
32024R1623 | Modified by | article 161 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 5 point (e) | 01/01/2025 |
32024R1623 | Modified by | article 222 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 160 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 325c paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 383j | 01/01/2025 |
32024R1623 | Modified by | article 138 point (g) | 01/01/2025 |
32024R1623 | Modified by | article 208 paragraph 3a | 01/01/2025 |
32024R1623 | Modified by | article 325y paragraph 6 | 01/01/2025 |
32024R1623 | Modified by | article 150 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 325a title | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1d | 01/01/2025 |
32024R1623 | Modified by | article 72i paragraph 1 point (a) point (ii) | 01/01/2025 |
32024R1623 | Modified by | article 325bh paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 202 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75a | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1a | 01/01/2025 |
32024R1623 | Modified by | article 235 title | 01/01/2025 |
32024R1623 | Modified by | article 430 paragraph 2b | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 183 paragraph 3 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 84 paragraph 5 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 232 paragraph 3 point (ba) | 01/01/2025 |
32024R1623 | Modified by | article 232 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 276 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 5 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 220 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 148 paragraph 5 | 01/01/2025 |
32024R1623 | Modified by | article 433b | 01/01/2025 |
32024R1623 | Modified by | article 213 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 34 | 01/01/2025 |
32024R1623 | Modified by | article 122 paragraph 1 table 6 | 01/01/2025 |
32024R1623 | Modified by | article 174 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 12 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 75b | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 125 | 01/01/2025 |
32024R1623 | Modified by | article 95 paragraph 2 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 192 point 5 | 01/01/2025 |
32024R1623 | Modified by | article 445 | 01/01/2025 |
32024R1623 | Modified by | article 182 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 201 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 142 paragraph 1 point 2 | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 11 | 01/01/2025 |
32024R1623 | Modified by | article 337 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 383m | 01/01/2025 |
32024R1623 | Modified by | article 164 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 151 paragraph 9 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 115 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 60a | 01/01/2025 |
32024R1623 | Modified by | article 92 paragraph 4 | 01/01/2025 |
32024R1623 | Modified by | article 113 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 87 paragraph 1 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 176 paragraph 2 sentence | 01/01/2025 |
32024R1623 | Modified by | article 429a paragraph 1 point (ca) | 01/01/2025 |
32024R1623 | Modified by | article 4 paragraph 1 point 79 | 01/01/2025 |
32024R1623 | Modified by | article 383n | 01/01/2025 |
32024R1623 | Modified by | article 325c title | 01/01/2025 |
32024R1623 | Modified by | article 215 paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 430 paragraph 2a | 01/01/2025 |
32024R1623 | Modified by | article 394 paragraph 2 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 4 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 325ah paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 273b paragraph 2 sentence | 01/01/2025 |
32024R1623 | Modified by | article 495e | 01/01/2025 |
32024R1623 | Modified by | article 172 paragraph 1 point (d) | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 2 | 01/01/2025 |
32024R1623 | Modified by | article 235 paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 447 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 176 paragraph 3 | 01/01/2025 |
32024R1623 | Modified by | article 325ah paragraph 1 unnumbered paragraph | 01/01/2025 |
32024R1623 | Modified by | article 230 | 01/01/2025 |
32024R1623 | Modified by | article 147 paragraph 7 | 01/01/2025 |
32024R1623 | Modified by | article 325bg paragraph 4 point (a) | 01/01/2025 |
32024R1623 | Modified by | article 429g paragraph 1 | 01/01/2025 |
32024R1623 | Modified by | article 325bq paragraph 6 point (c) | 01/01/2025 |
32024R1623 | Modified by | article 229 title | 01/01/2025 |
32024R1623 | Modified by | article 162 paragraph 3 unnumbered paragraph 1 sentence | 01/01/2025 |
32024R1623 | Modified by | article 210 point (g) | 01/01/2025 |
32019R2033 | Modified by | part 3 title (subdivision) I chapter 1 SECTION 2 | 26/06/2026 |
32019R2033 | Modified by | part 3 title (subdivision) I chapter 1 SECTION 2 A 98 | 26/06/2026 |
32019R2033 | Modified by | part 3 title (subdivision) I chapter 1 SECTION 2 A 95 | 26/06/2026 |
32019R2033 | Modified by | part 3 title (subdivision) I chapter 1 SECTION 2 A 96 | 26/06/2026 |
32019R2033 | Modified by | part 3 title (subdivision) I chapter 1 SECTION 2 A 97 | 26/06/2026 |
32024R2795 | Modified by | article 520a | 01/01/2025 |
02013R0575 — EN — 09.07.2024 — 017.001
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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 amending Regulation (EU) No 648/2012 (OJ L 176 27.6.2013, p. 1) |
Amended by:
Corrected by:
REGULATION (EU) No 575/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL
of 26 June 2013
on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012
(Text with EEA relevance)
PART ONE
GENERAL PROVISIONS
TITLE I
SUBJECT MATTER, SCOPE AND DEFINITIONS
Article 1
Scope
This Regulation lays down uniform rules concerning general prudential requirements that institutions, financial holding companies and mixed financial holding companies supervised under Directive 2013/36/EU shall comply with in relation to the following items:
own funds requirements relating to entirely quantifiable, uniform and standardised elements of credit risk, market risk, operational risk, settlement risk and leverage;
requirements limiting large exposures;
liquidity requirements relating to entirely quantifiable, uniform and standardised elements of liquidity risk;
reporting requirements related to points (a), (b) and (c);
public disclosure requirements.
This Regulation lays down uniform rules concerning the own funds and eligible liabilities requirements that resolution entities that are global systemically important institutions (G-SIIs) or part of G-SIIs and material subsidiaries of non-EU G-SIIs shall comply with.
This Regulation does not govern publication requirements for competent authorities in the field of prudential regulation and supervision of institutions as set out in Directive 2013/36/EU.
Article 2
Supervisory powers
Article 3
Application of stricter requirements by institutions
This Regulation shall not prevent institutions from holding own funds and their components in excess of, or applying measures that are stricter than those required by this Regulation.
Article 4
Definitions
For the purposes of this Regulation, the following definitions shall apply:
‘credit institution’ means an undertaking the business of which consists of any of the following:
to take deposits or other repayable funds from the public and to grant credits for its own account;
to carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU of the European Parliament and of the Council ( 6 ), where one of the following applies, but the undertaking is not a commodity and emission allowance dealer, a collective investment undertaking or an insurance undertaking:
the total value of the consolidated assets of the undertaking is equal to or exceeds EUR 30 billion;
the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in that group that individually have total assets of less than EUR 30 billion and that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU is equal to or exceeds EUR 30 billion; or
the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU is equal to or exceeds EUR 30 billion, where the consolidating supervisor, in consultation with the supervisory college, so decides in order to address potential risks of circumvention and potential risks for the financial stability of the Union;
for the purposes of points (b)(ii) and (b)(iii), where the undertaking is part of a third‐country group, the total assets of each branch of the third‐country group authorised in the Union shall be included in the combined total value of the assets of all undertakings in the group;
‘investment firm’ means an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU which is authorised under that Directive but excludes credit institutions;
‘institution’ means a credit institution authorised under Article 8 of Directive 2013/36/EU or an undertaking as referred to in Article 8a(3) thereof;
▼M9 —————
‘insurance undertaking’ means insurance undertaking as defined in point (1) of Article 13 of Directive 2009/138/EC of the European Parliament and of the Council of 25 November 2009 on the taking-up and pursuit of the business of Insurance and Reinsurance (Solvency II) ( 7 );
‘reinsurance undertaking’ means reinsurance undertaking as defined in point (4) of Article 13 of Directive 2009/138/EC;
‘collective investment undertaking’ or ‘CIU’ means a UCITS as defined in Article 1(2) of Directive 2009/65/EC of the European Parliament and of the Council ( 8 ) or an alternative investment fund (AIF) as defined in point (a) of Article 4(1) of Directive 2011/61/EU of the European Parliament and of the Council ( 9 );
‘public sector entity’ means a non-commercial administrative body responsible to central governments, regional governments or local authorities, or to authorities that exercise the same responsibilities as regional governments and local authorities, or a non-commercial undertaking that is owned by or set up and sponsored by central governments, regional governments or local authorities, and that has explicit guarantee arrangements, and may include self-administered bodies governed by law that are under public supervision;
‘management body’ means management body as defined in point (7) of Article 3(1) of Directive 2013/36/EU;
‘senior management’ means senior management as defined in point (9) of Article 3(1) of Directive 2013/36/EU;
‘systemic risk’ means systemic risk as defined in point (10) of Article 3(1) of Directive 2013/36/EU;
‘model risk’ means model risk as defined in point (11) of Article 3(1) of Directive 2013/36/EU;
‘originator’ means an originator as defined in point (3) of Article 2 of Regulation (EU) 2017/2402 ( 10 );
‘sponsor’ means a sponsor as defined in point (5) of Article 2 of Regulation (EU) 2017/2402;
‘original lender’ means an original lender as defined in point (20) of Article 2 of Regulation (EU) 2017/2402;
‘parent undertaking’ means:
a parent undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
for the purposes of Section II of Chapters 3 and 4 of Title VII and Title VIII of Directive 2013/36/EU and Part Five of this Regulation, a parent undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking which effectively exercises a dominant influence over another undertaking;
‘subsidiary’ means:
a subsidiary undertaking within the meaning of Articles 1 and 2 of Directive 83/349/EEC;
a subsidiary undertaking within the meaning of Article 1(1) of Directive 83/349/EEC and any undertaking over which a parent undertaking effectively exercises a dominant influence.
Subsidiaries of subsidiaries shall also be considered to be subsidiaries of the undertaking that is their original parent undertaking;
‘branch’ means a place of business which forms a legally dependent part of an institution and which carries out directly all or some of the transactions inherent in the business of institutions;
‘ancillary services undertaking’ means an undertaking the principal activity of which, whether provided to undertakings inside the group or to clients outside the group, consists of any of the following:
a direct extension of banking;
operational leasing, the ownership or management of property, the provision of data processing services or any other activity insofar as those activities are ancillary to banking;
any other activity considered similar by EBA to those referred to in points (a) and (b);
‘asset management company’ means an asset management company as defined in point (5) of Article 2 of Directive 2002/87/EC or an AIFM as defined in Article 4(1)(b) of Directive 2011/61/EU, including, unless otherwise provided, third-country entities that carry out similar activities and that are subject to the laws of a third country which applies supervisory and regulatory requirements at least equivalent to those applied in the Union;
‘financial holding company’ means a financial institution, the subsidiaries of which are exclusively or mainly institutions or financial institutions, and which is not a mixed financial holding company; the subsidiaries of a financial institution are mainly institutions or financial institutions where at least one of them is an institution and where more than 50 % of the financial institution's equity, consolidated assets, revenues, personnel or other indicator considered relevant by the competent authority are associated with subsidiaries that are institutions or financial institutions;
‘mixed financial holding company’ means mixed financial holding company as defined in point (15) of Article 2 of Directive 2002/87/EC;
‘mixed activity holding company’ means a parent undertaking, other than a financial holding company or an institution or a mixed financial holding company, the subsidiaries of which include at least one institution;
‘third-country insurance undertaking’ means third-country insurance undertaking as defined in point (3) of Article 13 of Directive 2009/138/EC;
‘third-country reinsurance undertaking’ means third-country reinsurance undertaking as defined in point (6) of Article 13 of Directive 2009/138/EC;
‘recognised third-country investment firm’ means a firm meeting all of the following conditions:
if it were established within the Union, it would be covered by the definition of an investment firm;
it is authorised in a third country;
it is subject to and complies with prudential rules considered by the competent authorities at least as stringent as those laid down in this Regulation or in Directive 2013/36/EU;
‘financial institution’ means an undertaking other than an institution and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive 2013/36/EU, including an investment firm, a financial holding company, a mixed financial holding company, an investment holding company, a payment institution within the meaning of Directive (EU) 2015/2366 of the European Parliament and of the Council ( 11 ), and an asset management company, but excluding insurance holding companies and mixed‐activity insurance holding companies as defined in points (f) and (g) of Article 212(1) of Directive 2009/138/EC;
‘financial sector entity’ means any of the following:
an institution;
a financial institution;
an ancillary services undertaking included in the consolidated financial situation of an institution;
an insurance undertaking;
a third-country insurance undertaking;
a reinsurance undertaking;
a third-country reinsurance undertaking;
an insurance holding company as defined in point (f) of Article 212(1) of Directive 2009/138/EC;
an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive;
a third-country undertaking with a main business comparable to any of the entities referred to in points (a) to (k);
‘parent institution in a Member State’ means an institution in a Member State which has an institution, a financial institution or an ancillary services undertaking as a subsidiary or which holds a participation in an institution, financial institution or ancillary services undertaking, and which is not itself a subsidiary of another institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State;
‘EU parent institution’ means a parent institution in a Member State which is not a subsidiary of another institution authorised in any Member State, or of a financial holding company or mixed financial holding company set up in any Member State;
‘parent investment firm in a Member State’ means a parent undertaking in a Member State that is an investment firm;
‘EU parent investment firm’ means an EU parent undertaking that is an investment firm;
‘parent credit institution in a Member State’ means a parent institution in a Member State that is a credit institution;
‘EU parent credit institution’ means an EU parent institution that is a credit institution;
‘parent financial holding company in a Member State’ means a financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in the same Member State;
‘EU parent financial holding company’ means a parent financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
‘parent mixed financial holding company in a Member State’ means a mixed financial holding company which is not itself a subsidiary of an institution authorised in the same Member State, or of a financial holding company or mixed financial holding company set up in that same Member State;
‘EU parent mixed financial holding company’ means a parent mixed financial holding company in a Member State which is not a subsidiary of an institution authorised in any Member State or of another financial holding company or mixed financial holding company set up in any Member State;
‘central counterparty’ or ‘CCP’ means a CCP as defined in point (1) of Article 2 of Regulation (EU) No 648/2012;
‘participation’ means participation within the meaning of the first sentence of Article 17 of Fourth Council Directive 78/660/EEC of 25 July 1978 on the annual accounts of certain types of companies ( 12 ), or the ownership, direct or indirect, of 20 % or more of the voting rights or capital of an undertaking;
‘qualifying holding’ means a direct or indirect holding in an undertaking which represents 10 % or more of the capital or of the voting rights or which makes it possible to exercise a significant influence over the management of that undertaking;
‘control’ means the relationship between a parent undertaking and a subsidiary, as defined in Article 1 of Directive 83/349/EEC, or the accounting standards to which an institution is subject under Regulation (EC) No 1606/2002, or a similar relationship between any natural or legal person and an undertaking;
‘close links’ means a situation in which two or more natural or legal persons are linked in any of the following ways:
participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of an undertaking;
control;
a permanent link of both or all of them to the same third person by a control relationship;
‘group of connected clients’ means any of the following:
two or more natural or legal persons who, unless it is shown otherwise, constitute a single risk because one of them, directly or indirectly, has control over the other or others;
two or more natural or legal persons between whom there is no relationship of control as described in point (a) but who are to be regarded as constituting a single risk because they are so interconnected that, if one of them were to experience financial problems, in particular funding or repayment difficulties, the other or all of the others would also be likely to encounter funding or repayment difficulties.
Notwithstanding points (a) and (b), where a central government has direct control over or is directly interconnected with more than one natural or legal person, the set consisting of the central government and all of the natural or legal persons directly or indirectly controlled by it in accordance with point (a), or interconnected with it in accordance with point (b), may be considered as not constituting a group of connected clients. Instead the existence of a group of connected clients formed by the central government and other natural or legal persons may be assessed separately for each of the persons directly controlled by it in accordance with point (a), or directly interconnected with it in accordance with point (b), and all of the natural and legal persons which are controlled by that person according to point (a) or interconnected with that person in accordance with point (b), including the central government. The same applies in cases of regional governments or local authorities to which Article 115(2) applies.
Two or more natural or legal persons who fulfil the conditions set out in point (a) or (b) because of their direct exposure to the same CCP for clearing activities purposes are not considered as constituting a group of connected clients;
‘competent authority’ means a public authority or body officially recognised by national law, which is empowered by national law to supervise institutions as part of the supervisory system in operation in the Member State concerned;
‘consolidating supervisor’ means a competent authority responsible for the exercise of supervision on a consolidated basis in accordance with Article 111 of Directive 2013/36/EU;
‘authorisation’ means an instrument issued in any form by the authorities by which the right to carry out the business is granted;
‘home Member State’ means the Member State in which an institution has been granted authorisation;
‘host Member State’ means the Member State in which an institution has a branch or in which it provides services;
‘ESCB central banks’ means the national central banks that are members of the European System of Central Banks (ESCB), and the European Central Bank (ECB);
‘central banks’ means the ESCB central banks and the central banks of third countries;
‘consolidated situation’ means the situation that results from applying the requirements of this Regulation in accordance with Part One, Title II, Chapter 2 to an institution as if that institution formed, together with one or more other entities, a single institution;
‘consolidated basis’ means on the basis of the consolidated situation;
‘sub-consolidated basis’ means on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company, excluding a sub-group of entities, or on the basis of the consolidated situation of a parent institution, financial holding company or mixed financial holding company that is not the ultimate parent institution, financial holding company or mixed financial holding company;
‘financial instrument’ means any of the following:
a contract that gives rise to both a financial asset of one party and a financial liability or equity instrument of another party;
an instrument specified in Section C of Annex I to Directive 2004/39/EC;
a derivative financial instrument;
a primary financial instrument;
a cash instrument.
The instruments referred to in points (a), (b) and (c) are only financial instruments if their value is derived from the price of an underlying financial instrument or another underlying item, a rate, or an index;
‘initial capital’ means the amounts and types of own funds specified in Article 12 of Directive 2013/36/EU;
‘operational risk’ means the risk of loss resulting from inadequate or failed internal processes, people and systems or from external events, and includes legal risk;
‘dilution risk’ means the risk that an amount receivable is reduced through cash or non-cash credits to the obligor;
‘probability of default’ or ‘PD’ means the probability of default of a counterparty over a one-year period;
‘loss given default’ or ‘LGD’ means the ratio of the loss on an exposure due to the default of a counterparty to the amount outstanding at default;
‘conversion factor’ means the ratio of the currently undrawn amount of a commitment that could be drawn and that would therefore be outstanding at default to the currently undrawn amount of the commitment, the extent of the commitment being determined by the advised limit, unless the unadvised limit is higher;
‘credit risk mitigation’ means a technique used by an institution to reduce the credit risk associated with an exposure or exposures which that institution continues to hold;
‘funded credit protection’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the right of that institution, in the event of the default of the counterparty or on the occurrence of other specified credit events relating to the counterparty, to liquidate, or to obtain transfer or appropriation of, or to retain certain assets or amounts, or to reduce the amount of the exposure to, or to replace it with, the amount of the difference between the amount of the exposure and the amount of a claim on the institution;
‘unfunded credit protection’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution derives from the obligation of a third party to pay an amount in the event of the default of the borrower or the occurrence of other specified credit events;
‘cash assimilated instrument’ means a certificate of deposit, a bond, including a covered bond, or any other non‐subordinated instrument, which has been issued by an institution or an investment firm, for which the institution or investment firm has already received full payment and which is to be unconditionally reimbursed by the institution or investment firm at its nominal value;
‘securitisation’ means a securitisation as defined in point (1) of Article 2 of Regulation (EU) 2017/2402;
‘securitisation position’ means a securitisation position as defined in point (19) of Article 2 of Regulation (EU) 2017/2402;
‘resecuritisation’ means a resecuritisation as defined in point (4) of Article 2 of Regulation (EU) 2017/2402;
‘re-securitisation position’ means an exposure to a re-securitisation;
‘credit enhancement’ means a contractual arrangement whereby the credit quality of a position in a securitisation is improved in relation to what it would have been if the enhancement had not been provided, including the enhancement provided by more junior tranches in the securitisation and other types of credit protection;
‘securitisation special purpose entity’ or ‘SSPE’ means a securitisation special purpose entity or SSPE as defined in point (2) of Article 2 of Regulation (EU) 2017/2402;
‘tranche’ means a tranche as defined in point (6) of Article 2 of Regulation (EU) 2017/2402;
‘marking to market’ means the valuation of positions at readily available close out prices that are sourced independently, including exchange prices, screen prices or quotes from several independent reputable brokers;
‘marking to model’ means any valuation which has to be benchmarked, extrapolated or otherwise calculated from one or more market inputs;
‘independent price verification’ means a process by which market prices or marking to model inputs are regularly verified for accuracy and independence;
‘eligible capital’ means the following:
for the purposes of Title III of Part Two it means the sum of the following:
Tier 1 capital as referred to in Article 25, without applying the deduction in Article 36(1)(k)(i);
Tier 2 capital as referred to in Article 71 that is equal to or less than one third of Tier 1 capital as calculated pursuant to point (i) of this point;
‘recognised exchange’ means an exchange which meets all of the following conditions:
it is a regulated market or a third‐country market that is considered to be equivalent to a regulated market in accordance with the procedure set out in point (a) of Article 25(4) of Directive 2014/65/EU;
it has a clearing mechanism whereby contracts listed in Annex II are subject to daily margin requirements which, in the opinion of the competent authorities, provide appropriate protection;
‘discretionary pension benefits’ means enhanced pension benefits granted on a discretionary basis by an institution to an employee as part of that employee's variable remuneration package, which do not include accrued benefits granted to an employee under the terms of the company pension scheme;
‘mortgage lending value’ means the value of immovable property as determined by a prudent assessment of the future marketability of the property taking into account long-term sustainable aspects of the property, the normal and local market conditions, the current use and alternative appropriate uses of the property;
‘residential property’ means a residence which is occupied by the owner or the lessee of the residence, including the right to inhabit an apartment in housing cooperatives located in Sweden;
‘market value’ means, for the purposes of immovable property, the estimated amount for which the property should exchange on the date of valuation between a willing buyer and a willing seller in an arm's-length transaction after proper marketing wherein the parties had each acted knowledgeably, prudently and without compulsion;
‘applicable accounting framework’ means the accounting standards to which the institution is subject under Regulation (EC) No 1606/2002 or Directive 86/635/EEC;
‘one-year default rate’ means the ratio between the number of defaults occurred during a period that starts from one year prior to a date T and the number of obligors assigned to this grade or pool one year prior to that date;
‘speculative immovable property financing’ means loans for the purposes of the acquisition of or development or construction on land in relation to immovable property, or of and in relation to such property, with the intention of reselling for profit;
‘trade finance’ means financing, including guarantees, connected to the exchange of goods and services through financial products of fixed short-term maturity, generally of less than one year, without automatic rollover;
‘officially supported export credits’ means loans or credits to finance the export of goods and services for which an official export credit agency provides guarantees, insurance or direct financing;
‘repurchase agreement’ and ‘reverse repurchase agreement’ mean any agreement in which an institution or its counterparty transfers securities or commodities or guaranteed rights relating to title to securities or commodities where that guarantee is issued by a recognised exchange which holds the rights to the securities or commodities and the agreement does not allow an institution to transfer or pledge a particular security or commodity to more than one counterparty at one time, subject to a commitment to repurchase them, or substituted securities or commodities of the same description at a specified price on a future date specified, or to be specified, by the transferor, being a repurchase agreement for the institution selling the securities or commodities and a reverse repurchase agreement for the institution buying them;
‘repurchase transaction’ means any transaction governed by a repurchase agreement or a reverse repurchase agreement;
‘simple repurchase agreement’ means a repurchase transaction of a single asset, or of similar, non-complex assets, as opposed to a basket of assets;
‘positions held with trading intent’ means any of the following:
proprietary positions and positions arising from client servicing and market making;
positions intended to be resold short term;
positions intended to benefit from actual or expected short-term price differences between buying and selling prices or from other price or interest rate variations;
‘trading book’ means all positions in financial instruments and commodities held by an institution either with trading intent or to hedge positions held with trading intent in accordance with Article 104;
‘multilateral trading facility’ means multilateral trading facility as defined in point 15 of Article 4 of Directive 2004/39/EC;
‘qualifying central counterparty’ or ‘QCCP’ means a central counterparty that has been either authorised in accordance with Article 14 of Regulation (EU) No 648/2012 or recognised in accordance with Article 25 of that Regulation;
‘default fund’ means a fund established by a CCP in accordance with Article 42 of Regulation (EU) No 648/2012 and used in accordance with Article 45 of that Regulation;
‘pre-funded contribution to the default fund of a CCP’ means a contribution to the default fund of a CCP that is paid in by an institution;
‘trade exposure’ means a current exposure, including a variation margin due to the clearing member but not yet received, and any potential future exposure of a clearing member or a client, to a CCP arising from contracts and transactions listed in points (a), (b) and (c) of Article 301(1), as well as initial margin;
‘regulated market’ means regulated market as defined in point (14) of Article 4 of Directive 2004/39/EC;
‘leverage’ means the relative size of an institution's assets, off-balance sheet obligations and contingent obligations to pay or to deliver or to provide collateral, including obligations from received funding, made commitments, derivatives or repurchase agreements, but excluding obligations which can only be enforced during the liquidation of an institution, compared to that institution's own funds;
‘risk of excessive leverage’ means the risk resulting from an institution's vulnerability due to leverage or contingent leverage that may require unintended corrective measures to its business plan, including distressed selling of assets which might result in losses or in valuation adjustments to its remaining assets;
‘credit risk adjustment’ means the amount of specific and general loan loss provision for credit risks that has been recognised in the financial statements of the institution in accordance with the applicable accounting framework;
‘internal hedge’ means a position that materially offsets the component risk elements between a trading book position and one or more non-trading book positions or between two trading desks;
‘reference obligation’ means an obligation used for the purposes of determining the cash settlement value of a credit derivative;
‘external credit assessment institution’ or ‘ECAI’ means a credit rating agency that is registered or certified in accordance with Regulation (EC) No 1060/2009 of the European Parliament and of the Council of 16 September 2009 on credit rating agencies ( 13 ) or a central bank issuing credit ratings which are exempt from the application of Regulation (EC) No 1060/2009;
‘nominated ECAI’ means an ECAI nominated by an institution;
‘accumulated other comprehensive income’ has the same meaning as under International Accounting Standard (IAS) 1, as applicable under Regulation (EC) No 1606/2002;
‘basic own funds’ means basic own funds within the meaning of Article 88 of Directive 2009/138/EC;
‘Tier 1 own-fund insurance items’ means basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 1 within the meaning of Directive 2009/138/EC in accordance with Article 94(1) of that Directive;
‘additional Tier 1 own-fund insurance items’ means basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 1 within the meaning of Directive 2009/138/EC in accordance with Article 94(1) of that Directive and the inclusion of those items is limited by the delegated acts adopted in accordance with Article 99 of that Directive;
‘Tier 2 own-fund insurance items’ means basic own-fund items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 2 within the meaning of Directive 2009/138/EC in accordance with Article 94(2) of that Directive;
‘Tier 3 own-fund insurance items’ means basic own-fund insurance items of undertakings subject to the requirements of Directive 2009/138/EC where those items are classified in Tier 3 within the meaning of Directive 2009/138/EC in accordance with Article 94(3) of that Directive;
‘deferred tax assets’ has the same meaning as under the applicable accounting framework;
‘deferred tax assets that rely on future profitability’ means deferred tax assets the future value of which may be realised only in the event the institution generates taxable profit in the future;
‘deferred tax liabilities’ has the same meaning as under the applicable accounting framework;
‘defined benefit pension fund assets’ means the assets of a defined pension fund or plan, as applicable, calculated after they have been reduced by the amount of obligations under the same fund or plan;
‘distributions’ means the payment of dividends or interest in any form;
‘financial undertaking’ has the same meaning as under points (25)(b) and (d) of Article 13 of Directive 2009/138/EC;
‘funds for general banking risk’ has the same meaning as under Article 38 of Directive 86/635/EEC;
‘goodwill’ has the same meaning as under the applicable accounting framework;
‘indirect holding’ means any exposure to an intermediate entity that has an exposure to capital instruments issued by a financial sector entity where, in the event the capital instruments issued by the financial sector entity were permanently written off, the loss that the institution would incur as a result would not be materially different from the loss the institution would incur from a direct holding of those capital instruments issued by the financial sector entity;
‘intangible assets’ has the same meaning as under the applicable accounting framework and includes goodwill;
‘other capital instruments’ means capital instruments issued by financial sector entities that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments or Tier 1 own-fund insurance items, additional Tier 1 own-fund insurance items, Tier 2 own-fund insurance items or Tier 3 own-fund insurance items;
‘other reserves’ means reserves within the meaning of the applicable accounting framework that are required to be disclosed under the applicable accounting standard, excluding any amounts already included in accumulated other comprehensive income or retained earnings;
‘own funds’ means the sum of Tier 1 capital and Tier 2 capital;
‘own funds instruments’ means capital instruments issued by the institution that qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments;
‘minority interest’ means the amount of Common Equity Tier 1 capital of a subsidiary of an institution that is attributable to natural or legal persons other than those included in the prudential scope of consolidation of the institution;
‘profit’ has the same meaning as under the applicable accounting framework;
‘reciprocal cross holding’ means a holding by an institution of the own funds instruments or other capital instruments issued by financial sector entities where those entities also hold own funds instruments issued by the institution;
‘retained earnings’ means profits and losses brought forward as a result of the final application of profit or loss under the applicable accounting framework;
‘share premium account’ has the same meaning as under the applicable accounting framework;
‘temporary differences’ has the same meaning as under the applicable accounting framework;
‘synthetic holding’ means an investment by an institution in a financial instrument the value of which is directly linked to the value of the capital instruments issued by a financial sector entity;
‘cross-guarantee scheme’ means a scheme that meets all the following conditions:
the institutions fall within the same institutional protection scheme as referred to in Article 113(7) or are permanently affiliated with a network to a central body;
the institutions are fully consolidated in accordance with Article 1(1)(b), (c) or (d) or Article 1(2) of Directive 83/349/EEC and are included in the supervision on a consolidated basis of an institution which is a parent institution in a Member State in accordance with Part One, Title II, Chapter 2 of this Regulation and subject to own funds requirements;
the parent institution in a Member State and the subsidiaries are established in the same Member State and are subject to authorisation and supervision by the same competent authority;
the parent institution in a Member State and the subsidiaries have entered into a contractual or statutory liability arrangement which protects those institutions and in particular ensures their liquidity and solvency, in order to avoid bankruptcy in the case that it becomes necessary;
arrangements are in place to ensure the prompt provision of financial means in terms of capital and liquidity if required under the contractual or statutory liability arrangement referred to in point (d);
the adequacy of the arrangements referred to in points (d) and (e) is monitored on a regular basis by the competent authority;
the minimum period of notice for a voluntary exit of a subsidiary from the liability arrangement is 10 years;
the competent authority is empowered to prohibit a voluntary exit of a subsidiary from the liability arrangement;
‘distributable items’ means the amount of the profits at the end of the last financial year plus any profits brought forward and reserves available for that purpose, before distributions to holders of own funds instruments, less any losses brought forward, any profits which are non-distributable pursuant to Union or national law or the institution's by-laws and any sums placed in non-distributable reserves in accordance with national law or the statutes of the institution, in each case with respect to the specific category of own funds instruments to which Union or national law, institutions' by-laws, or statutes relate; such profits, losses and reserves being determined on the basis of the individual accounts of the institution and not on the basis of the consolidated accounts;
‘servicer’ means a servicer as defined in point (13) of Article 2 of Regulation (EU) 2017/2402;
‘resolution authority’ means a resolution authority as defined in point (18) of Article 2(1) of Directive 2014/59/EU;
‘relevant third-country authority’ means a third-country authority as defined in Article 2(1), point (90), of Directive 2014/59/EU;
‘resolution entity’ means a resolution entity as defined in point (83a) of Article 2(1) of Directive 2014/59/EU;
‘resolution group’ means a resolution group as defined in point (83b) of Article 2(1) of Directive 2014/59/EU;
‘global systemically important institution’ or ‘G-SII’ means a G-SII that has been identified in accordance with Article 131(1) and (2) of Directive 2013/36/EU;
‘non-EU global systemically important institution’ or ‘non-EU G-SII’ means a global systemically important banking group or a bank (G-SIBs) that is not a G-SII and that is included in the list of G-SIBs published by the Financial Stability Board, as regularly updated;
‘material subsidiary’ means a subsidiary that on an individual or consolidated basis meets any of the following conditions:
the subsidiary holds more than 5 % of the consolidated risk-weighted assets of its original parent undertaking;
the subsidiary generates more than 5 % of the total operating income of its original parent undertaking;
the total exposure measure, referred to in Article 429(4) of this Regulation, of the subsidiary is more than 5 % of the consolidated total exposure measure of its original parent undertaking;
for the purpose of determining the material subsidiary, where Article 21b(2) of Directive 2013/36/EU applies, the two intermediate EU parent undertakings shall count as a single subsidiary on the basis of their consolidated situation;
‘G-SII entity’ means an entity with legal personality that is a G-SII or is part of a G-SII or of a non-EU G-SII;
‘bail-in tool’ means a bail-in tool as defined in point (57) of Article 2(1) of Directive 2014/59/EU;
‘group’ means a group of undertakings of which at least one is an institution and which consists of a parent undertaking and its subsidiaries, or of undertakings that are related to each other as set out in Article 22 of Directive 2013/34/EU of the European Parliament and of the Council ( 14 );
‘securities financing transaction’ means a repurchase transaction, a securities or commodities lending or borrowing transaction, or a margin lending transaction;
‘initial margin’ or ‘IM’ means any collateral, other than variation margin, collected from or posted to an entity to cover the current and potential future exposure of a transaction or of a portfolio of transactions in the period needed to liquidate those transactions, or to re-hedge their market risk, following the default of the counterparty to the transaction or portfolio of transactions;
‘market risk’ means the risk of losses arising from movements in market prices, including in foreign exchange rates or commodity prices;
‘foreign exchange risk’ means the risk of losses arising from movements in foreign exchange rates;
‘commodity risk’ means the risk of losses arising from movements in commodity prices;
‘trading desk’ means a well-identified group of dealers set up by the institution to jointly manage a portfolio of trading book positions in accordance with a well-defined and consistent business strategy and operating under the same risk management structure;
‘small and non-complex institution’ means an institution that meets all the following conditions:
it is not a large institution;
the total value of its assets on an individual basis or, where applicable, on a consolidated basis in accordance with this Regulation and Directive 2013/36/EU is on average equal to or less than the threshold of EUR 5 billion over the four-year period immediately preceding the current annual reporting period; Member States may lower that threshold;
it is not subject to any obligations, or is subject to simplified obligations, in relation to recovery and resolution planning in accordance with Article 4 of Directive 2014/59/EU;
its trading book business is classified as small within the meaning of Article 94(1);
the total value of its derivative positions held with trading intent does not exceed 2 % of its total on- and off-balance-sheet assets and the total value of its overall derivative positions does not exceed 5 %, both calculated in accordance with Article 273a(3);
more than 75 % of both the institution's consolidated total assets and liabilities, excluding in both cases the intragroup exposures, relate to activities with counterparties located in the European Economic Area;
the institution does not use internal models to meet the prudential requirements in accordance with this Regulation except for subsidiaries using internal models developed at the group level, provided that the group is subject to the disclosure requirements laid down in Article 433a or 433c on a consolidated basis;
the institution has not communicated to the competent authority an objection to being classified as a small and non-complex institution;
the competent authority has not decided that the institution is not to be considered a small and non-complex institution on the basis of an analysis of its size, interconnectedness, complexity or risk profile;
‘large institution’ means an institution that meets any of the following conditions:
it is a G-SII;
it has been identified as an other systemically important institution (O-SII) in accordance with Article 131(1) and (3) of Directive 2013/36/EU;
it is, in the Member State in which it is established, one of the three largest institutions in terms of total value of assets;
the total value of its assets on an individual basis or, where applicable, on the basis of its consolidated situation in accordance with this Regulation and Directive 2013/36/EU is equal to or greater than EUR 30 billion;
‘large subsidiary’ means a subsidiary that qualifies as a large institution;
‘non-listed institution’ means an institution that has not issued securities that are admitted to trading on a regulated market of any Member State, within the meaning of point (21) of Article 4(1) of Directive 2014/65/EU;
‘financial report’ means, for the purposes of Part Eight, a financial report within the meaning of Articles 4 and 5 of Directive 2004/109/EC of the European Parliament and of the Council ( 15 );
‘commodity and emission allowance dealer’ means an undertaking the main business of which consists exclusively of the provision of investment services or activities in relation to commodity derivatives or commodity derivative contracts referred to in points (5), (6), (7), (9) and (10), derivatives of emission allowances referred to in point (4), or emission allowances referred to in point (11) of Section C of Annex I to Directive 2014/65/EU.
EBA shall submit those draft regulatory technical standards to the Commission by 28 June 2020.
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.
Article 5
Definitions specific to capital requirements for credit risk
For the purposes of Part Three, Title II, the following definitions shall apply:
‘exposure’ means an asset or off-balance sheet item;
‘loss’ means economic loss, including material discount effects, and material direct and indirect costs associated with collecting on the instrument;
‘expected loss’ or ‘EL’ means the ratio, related to a single facility, of the amount expected to be lost on an exposure from any of the following:
a potential default of an obligor over a one-year period to the amount outstanding at default;
a potential dilution event over a one-year period to the amount outstanding at the date of occurrence of the dilution event;
‘credit obligation’ means any obligation arising from a credit contract, including principal, accrued interest and fees, owed by an obligor;
‘credit exposure’ means any on- or off -balance-sheet item, that results, or may result, in a credit obligation;
‘facility’ or ‘credit facility’ means a credit exposure arising from a contract or a set of contracts between an obligor and an institution;
‘margin of conservatism’ means an add-on incorporated in risk parameter estimates to account for the expected range of estimation errors stemming from identified deficiencies in data, methods, models, and changes to underwriting standards, risk appetite, collection and recovery policies and any other source of additional uncertainty, as well as from general estimation error;
‘appropriate adjustment’ means the impact on risk parameter estimates resulting from the application of methodologies within the estimation of risk parameters to correct the identified deficiencies in data and in estimation methods, and to account for changes to underwriting standards, risk appetite, collection and recovery policies and any other source of additional uncertainty, to the extent possible in order to avoid biases in risk parameter estimates;
‘small and medium-sized enterprise’ or ‘SME’ means a company, enterprise or undertaking which, according to its most recent consolidated accounts, has an annual turnover not exceeding EUR 50 000 000 ;
‘commitment’ means any contractual arrangement that an institution offers to a client, and is accepted by that client, to extend credit, purchase assets or issue credit substitutes; and any such arrangement that can be unconditionally cancelled by an institution at any time without prior notice to an obligor or any arrangement that can be cancelled by an institution where an obligor fails to meet the conditions set out in the facility documentation, including conditions that are required to be met by the obligor prior to any initial or subsequent drawdown under the arrangement, unless contractual arrangements meet all of the following conditions:
contractual arrangements where the institution receives no fees or commissions to establish or maintain those contractual arrangements;
contractual arrangements where the client is required to apply to the institution for the initial and each subsequent drawdown under those contractual arrangements;
contractual arrangements where the institution has full authority, regardless of the fulfilment by the client of the conditions set out in the contractual arrangement documentation, over the execution of each drawdown;
the contractual arrangements allow the institution to assess the creditworthiness of the client immediately prior to deciding on the execution of each drawdown and the institution has implemented and applies internal procedures that ensure that such an assessment is being made before the execution of each drawdown;
contractual arrangements that are offered to a corporate entity, including an SME, that is closely monitored on an ongoing basis;
‘unconditionally cancellable commitment’ means any commitment the terms of which permit the institution to cancel that commitment to the full extent allowable under consumer protection and related legal acts, where applicable, at any time without prior notice to the obligor or that effectively provide for automatic cancellation due to a deterioration in a borrower’s creditworthiness.
Article 5a
Definitions specific to crypto-assets
For the purposes of this Regulation, the following definitions apply:
‘crypto-asset’ means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council ( 16 ) that is not a central bank digital currency;
‘electronic money token’ or ‘e-money token’ means an electronic money token or e-money token as defined in Article 3(1), point (7), of Regulation (EU) 2023/1114;
‘crypto-asset exposure’ means an asset or an off-balance-sheet item related to a crypto-asset that gives rise to credit risk, counterparty credit risk, market risk, operational risk or liquidity risk;
‘traditional asset’ means any asset other than a crypto-asset, including:
financial instruments as defined in Article 4(1), point (50), of this Regulation;
funds as defined in Article 4, point (25), of Directive (EU) 2015/2366;
deposits as defined in Article 2(1), point (3), of Directive 2014/49/EU of the European Parliament and of the Council ( 17 ), including structured deposits;
securitisation positions in the context of a securitisation as defined in Article 2, point (1), of Regulation (EU) 2017/2402;
non-life or life insurance products falling within the classes of insurance listed in Annexes I and II to Directive 2009/138/EC or reinsurance and retrocession contracts referred to in that Directive;
pension products that, under national law, are recognised as having the primary purpose of providing the investor with an income in retirement and that entitle the investor to certain benefits;
officially recognised occupational pension schemes within the scope of Directive (EU) 2016/2341 of the European Parliament and of the Council ( 18 ) or Directive 2009/138/EC;
individual pension products for which a financial contribution from the employer is required by national law and where the employer or the employee has no choice as to the pension product or provider;
a pan-European Personal Pension Product as defined in Article 2, point (2), of Regulation (EU) 2019/1238 of the European Parliament and of the Council ( 19 );
‘tokenised traditional asset’ means a type of crypto-asset that represents a traditional asset, including an e-money token;
‘asset-referenced token’ means an asset-referenced token as defined in Article 3(1), point (6), of Regulation (EU) 2023/1114;
‘crypto-asset service’ means a crypto-asset service as defined in Article 3(1), point (16), of Regulation (EU) 2023/1114.
TITLE II
LEVEL OF APPLICATION OF REQUIREMENTS
CHAPTER 1
Application of requirements on an individual basis
Article 6
General principles
Material subsidiaries of a non-EU G-SII shall comply with Article 92b on an individual basis, where they meet all the following conditions:
they are not resolution entities;
they do not have subsidiaries;
they are not the subsidiaries of an EU parent institution.
By way of derogation from the first subparagraph of this paragraph, the institutions referred to in paragraph 1a of this Article shall comply with Article 437a and point (h) of Article 447 on an individual basis.
Institutions shall comply with the obligations laid down in Part Six and in point (d) of Article 430(1) of this Regulation on an individual basis.
The following institutions shall not be required to comply with Article 413(1) and the associated liquidity reporting requirements laid down in Part Seven A of this Regulation:
institutions which are also authorised in accordance with Article 14 of Regulation (EU) No 648/2012;
institutions which are also authorised in accordance with Article 16 and point (a) of Article 54(2) of Regulation (EU) No 909/2014 of the European Parliament and of the Council ( 22 ), provided that they do not perform any significant maturity transformations; and
institutions which are designated in accordance with point (b) of Article 54(2) of Regulation (EU) No 909/2014, provided that:
their activities are limited to offering banking‐type services, as referred to in Section C of the Annex to that Regulation, to central securities depositories authorised in accordance with Article 16 of that Regulation; and
they do not perform any significant maturity transformations.
Article 7
Derogation from the application of prudential requirements on an individual basis
Competent authorities may waive the application of Article 6(1) to any subsidiary of an institution, where both the subsidiary and the institution are subject to authorisation and supervision by the Member State concerned, and the subsidiary is included in the supervision on a consolidated basis of the institution which is the parent undertaking, and all of the following conditions are satisfied, in order to ensure that own funds are distributed adequately between the parent undertaking and the subsidiary:
there is no current or foreseen material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities by its parent undertaking;
either the parent undertaking satisfies the competent authority regarding the prudent management of the subsidiary and has declared, with the permission of the competent authority, that it guarantees the commitments entered into by the subsidiary, or the risks in the subsidiary are of negligible interest;
the risk evaluation, measurement and control procedures of the parent undertaking cover the subsidiary;
the parent undertaking holds more than 50 % of the voting rights attached to shares in the capital of the subsidiary or has the right to appoint or remove a majority of the members of the management body of the subsidiary.
Competent authorities may waive the application of Article 6(1) to a parent institution in a Member State where that institution is subject to authorisation and supervision by the Member State concerned, and it is included in the supervision on a consolidated basis, and all the following conditions are satisfied, in order to ensure that own funds are distributed adequately among the parent undertaking and the subsidiaries:
there is no current or foreseen material practical or legal impediment to the prompt transfer of own funds or repayment of liabilities to the parent institution in a Member State;
the risk evaluation, measurement and control procedures relevant for consolidated supervision cover the parent institution in a Member State.
The competent authority which makes use of this paragraph shall inform the competent authorities of all other Member States.
Article 8
Derogation from the application of liquidity requirements on an individual basis
The competent authorities may waive in full or in part the application of Part Six to an institution and to all or some of its subsidiaries in the Union and supervise them as a single liquidity sub-group so long as they fulfil all of the following conditions:
the parent institution on a consolidated basis or a subsidiary institution on a sub-consolidated basis complies with the obligations laid down in Part Six;
the parent institution on a consolidated basis or the subsidiary institution on a sub-consolidated basis monitors and has oversight at all times over the liquidity positions of all institutions within the group or sub-group, that are subject to the waiver, monitors and has oversight at all times over the funding positions of all institutions within the group or sub-group where the net stable funding ratio (NSFR) requirement set out in Title IV of Part Six is waived, and ensures a sufficient level of liquidity, and of stable funding where the NSFR requirement set out in Title IV of Part Six is waived, for all of those institutions;
the institutions have entered into contracts that, to the satisfaction of the competent authorities, provide for the free movement of funds between them to enable them to meet their individual and joint obligations as they become due;
there is no current or foreseen material practical or legal impediment to the fulfilment of the contracts referred to in (c).
By 1 January 2014, the Commission shall report to the European Parliament and the Council on any legal obstacles which are capable of rendering impossible the application of point (c) of the first subparagraph and is invited to make a legislative proposal, if appropriate, by 31 December 2015, on which of those obstacles should be removed.
Where institutions of the single liquidity sub-group are authorised in several Member States, paragraph 1 shall only be applied after following the procedure laid down in Article 21 and only to the institutions whose competent authorities agree about the following elements:
their assessment of the compliance of the organisation and of the treatment of liquidity risk with the conditions set out in Article 86 of Directive 2013/36/EU across the single liquidity sub-group;
the distribution of amounts, location and ownership of the required liquid assets to be held within the single liquidity sub-group, where the liquidity coverage ratio (LCR) requirement as laid down in the delegated act referred to in Article 460(1) is waived, and the distribution of amounts and location of available stable funding within the single liquidity sub-group, where the NSFR requirement set out in Title IV of Part Six is waived;
the determination of minimum amounts of liquid assets to be held by institutions for which the application of the LCR requirement as laid down in the delegated act referred to in Article 460(1) is waived and the determination of minimum amounts of available stable funding to be held by institutions for which the application of the NSFR requirement set out in Title IV of Part Six is waived;
the need for stricter parameters than those set out in Part Six;
unrestricted sharing of complete information between the competent authorities;
a full understanding of the implications of such a waiver.
Article 9
Individual consolidation method
Article 10
Waiver for credit institutions permanently affiliated to a central body
Competent authorities may, in accordance with national law, partially or fully waive the application of the requirements set out in Parts Two to Eight of this Regulation and Chapter 2 of Regulation (EU) 2017/2402 to one or more credit institutions situated in the same Member State and which are permanently affiliated to a central body which supervises them and which is established in the same Member State, if the following conditions are met:
the commitments of the central body and affiliated institutions are joint and several liabilities or the commitments of its affiliated institutions are entirely guaranteed by the central body;
the solvency and liquidity of the central body and of all the affiliated institutions are monitored as a whole on the basis of consolidated accounts of these institutions;
the management of the central body is empowered to issue instructions to the management of the affiliated institutions.
Member States may maintain and make use of existing national legislation regarding the application of the waiver referred to in the first subparagraph as long as it does not conflict with this Regulation or Directive 2013/36/EU.
CHAPTER 2
Prudential consolidation
Section 1
Application of requirements on a consolidated basis
Article 10a
Application of prudential requirements on a consolidated basis where investment firms are parent undertakings
For the purposes of this Chapter, investment firms and investment holding companies shall be considered to be parent financial holding companies in a Member State or EU parent financial holding companies where such investment firms or investment holding companies are parent undertakings of an institution or of an investment firm subject to this Regulation that is referred to in Article 1(2) or (5) of Regulation (EU) 2019/2033.
Article 11
General treatment
For the purpose of ensuring that the requirements of this Regulation are applied on a consolidated basis, the terms ‘institution’, ‘parent institution in a Member State’, ‘EU parent institution’ and ‘parent undertaking’, as the case may be, shall also refer to:
a financial holding company or mixed financial holding company approved in accordance with Article 21a of Directive 2013/36/EU;
a designated institution controlled by a parent financial holding company or parent mixed financial holding company where such a parent is not subject to approval in accordance with Article 21a(4) of Directive 2013/36/EU;
a financial holding company, mixed financial holding company or institution designated in accordance with point (d) of Article 21a(6) of Directive 2013/36/EU.
The consolidated situation of an undertaking referred to in point (b) of the first subparagraph of this paragraph shall be the consolidated situation of the parent financial holding company or the parent mixed financial holding company that is not subject to approval in accordance with Article 21a(4) of Directive 2013/36/EU. The consolidated situation of an undertaking referred to in point (c) of the first subparagraph of this paragraph shall be the consolidated situation of its parent financial holding company or parent mixed financial holding company.
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Only EU parent undertakings that are a material subsidiary of a non-EU G-SII and are not resolution entities shall comply with Article 92b of this Regulation on a consolidated basis to the extent and in the manner set out in Article 18 of this Regulation. Where Article 21b(2) of Directive 2013/36/EU applies, the two intermediate EU parent undertakings jointly identified as a material subsidiary shall each comply with Article 92b of this Regulation on the basis of their consolidated situation.
EU parent institutions shall comply with Part Six and point (d) of Article 430(1) of this Regulation on the basis of their consolidated situation where the group comprises one or more credit institutions or investment firms that are authorised to provide the investment services and activities listed in points (3) and (6) of Section A of Annex I to Directive 2014/65/EU.
Where a waiver has been granted under Article 8(1) to (5), the institutions and, where applicable, the financial holding companies or mixed financial holding companies that are part of a liquidity sub‐group shall comply with Part Six and point (d) of Article 430(1) of this Regulation on a consolidated basis or on the sub‐consolidated basis of the liquidity sub‐group.
The application of the approach set out in the first subparagraph shall be without prejudice to effective supervision on a consolidated basis and shall neither entail disproportionate adverse effects on the whole or parts of the financial system in other Member States or in the Union as a whole nor form or create an obstacle to the functioning of the internal market.
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Article 12a
Consolidated calculation for G-SIIs with multiple resolution entities
Where at least two G-SII entities that are part of the same G-SII are resolution entities or third-country entities that would be resolution entities if they were established in the Union, the EU parent institution of that G-SII shall calculate the amount of own funds and eligible liabilities referred to in Article 92a(1), point (a):
for each resolution entity or third-country entity that would be a resolution entity if it were established in the Union;
for the EU parent institution as if it were the only resolution entity of the G-SII.
The calculation referred to in point (b) of the first subparagraph shall be undertaken on the basis of the consolidated situation of the EU parent institution.
Resolution authorities shall act in accordance with Article 45d(4) and Article 45h(2) of Directive 2014/59/EU.
Article 13
Application of disclosure requirements on a consolidated basis
Large subsidiaries of EU parent institutions shall disclose the information specified in Articles 437, 438, 440, 442, 450, 451, 451a and 453 on an individual basis or, where applicable in accordance with this Regulation and Directive 2013/36/EU, on a sub-consolidated basis.
The second subparagraph of paragraph 1 shall apply to subsidiaries of parent undertakings established in a third country where those subsidiaries qualify as large subsidiaries.
Article 14
Application of requirements of Article 5 of Regulation (EU) 2017/2402 on a consolidated basis
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Section 2
Methods for prudential consolidation
Article 18
Methods of prudential consolidation
For the purposes of Article 11(3a), institutions that are required to comply with the requirements referred to in Article 92a or 92b on a consolidated basis shall carry out a full consolidation of all institutions and financial institutions that are their subsidiaries in the relevant resolution groups.
Competent authorities shall determine whether and how consolidation is to be carried out in the following cases:
where, in the opinion of the competent authorities, an institution exercises a significant influence over one or more institutions or financial institutions, but without holding a participation or other capital ties in those institutions; and
where two or more institutions or financial institutions are placed under single management other than pursuant to a contract, clauses of their memoranda or articles of association.
In particular, competent authorities may permit or require the use of the method provided for in Article 22(7), (8) and (9) of Directive 2013/34/EU. That method shall not, however, constitute inclusion of the undertakings concerned in consolidated supervision.
By way of derogation from the first subparagraph, competent authorities may allow or require institutions to apply a different method to such subsidiaries or participations, including the method required by the applicable accounting framework, provided that:
the institution does not already apply the equity method on 28 December 2020;
it would be unduly burdensome to apply the equity method or the equity method does not adequately reflect the risks that the undertaking referred to in the first subparagraph poses to the institution; and
the method applied does not result in full or proportional consolidation of that undertaking.
Competent authorities may require full or proportional consolidation of a subsidiary or an undertaking in which an institution holds a participation where that subsidiary or undertaking is not an institution, financial institution or ancillary services undertaking and where all the following conditions are met:
the undertaking is not an insurance undertaking, a third-country insurance undertaking, a reinsurance undertaking, a third-country reinsurance undertaking, an insurance holding company or an undertaking excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive;
there is a substantial risk that the institution decides to provide financial support to that undertaking in stressed conditions, in the absence of, or in excess of any contractual obligations to provide such support.
EBA shall submit those draft regulatory technical standards to the Commission by 31 December 2020.
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.
In light of EBA’s findings, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal to make adjustments to the relevant definitions or the scope of prudential consolidation.
Section 3
Scope of prudential consolidation
Article 19
Entities excluded from the scope of prudential consolidation
An institution, a financial institution or an ancillary services undertaking which is a subsidiary or an undertaking in which a participation is held, need not to be included in the consolidation where the total amount of assets and off-balance sheet items of the undertaking concerned is less than the smaller of the following two amounts:
EUR 10 million;
1 % of the total amount of assets and off-balance sheet items of the parent undertaking or the undertaking that holds the participation.
The competent authorities responsible for exercising supervision on a consolidated basis pursuant to Article 111 of Directive 2013/36/EU may on a case-by-case basis decide in the following cases that an institution, financial institution or ancillary services undertaking which is a subsidiary or in which a participation is held need not be included in the consolidation:
where the undertaking concerned is situated in a third country where there are legal impediments to the transfer of the necessary information;
where the undertaking concerned is of negligible interest only with respect to the objectives of monitoring institutions;
where, in the opinion of the competent authorities responsible for exercising supervision on a consolidated basis, the consolidation of the financial situation of the undertaking concerned would be inappropriate or misleading as far as the objectives of the supervision of institutions are concerned.
Article 20
Joint decisions on prudential requirements
The competent authorities shall work together, in full consultation:
in the case of applications for the permissions referred to in Article 143(1), Article 151(4) and (9), Article 283, Article 312(2) and Article363 respectively submitted by an EU parent institution and its subsidiaries, or jointly by the subsidiaries of an EU parent financial holding company or EU parent mixed financial holding company, to decide whether or not to grant the permission sought and to determine the terms and conditions, if any, to which such permission should be subject;
for the purposes of determining whether the criteria for a specific intragroup treatment as referred to in Article 422(9) and Article 425(5) complemented by the EBA regulatory technical standards referred to in Article 422(10) and Article 425(6) are met.
Applications shall be submitted only to the consolidating supervisor.
The application referred to in Article 312(2), shall include a description of the methodology used for allocating operational risk capital between the different entities of the group. The application shall indicate whether and how diversification effects are intended to be factored in the risk measurement system.
The competent authorities shall do everything within their power to reach a joint decision within six months on:
the application referred to in point (a) of paragraph 1;
the assessment of the criteria and the determination of the specific treatment referred to in point (b) of paragraph 1.
This joint decision shall be set out in a document containing the fully reasoned decision which shall be provided to the applicant by the competent authority referred to in paragraph 1.
The period referred to in paragraph 2 shall begin:
on the date of receipt of the complete application referred to in point (a) of paragraph 1 by the consolidating supervisor. The consolidating supervisor shall forward the complete application to the other competent authorities without delay;
on the date of receipt by competent authorities of a report prepared by the consolidating supervisor analysing intragroup commitments within the group.
The decision shall be set out in a document containing the fully reasoned decision and shall take into account the views and reservations of the other competent authorities expressed during the six months period.
The decision shall be provided to the EU parent institution, the EU parent financial holding company or to the EU parent mixed financial holding company and the other competent authorities by the consolidating supervisor.
If, at the end of the six-month period, any of the competent authorities concerned has referred the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the consolidating supervisor shall defer its decision on point (a) of paragraph 1 of this Article and await any decision that EBA may take in accordance with Article 19(3) of that Regulation on its decision, and shall take its decision in conformity with the decision of EBA. The six-month period shall be deemed the conciliation period within the meaning of that Regulation. EBA shall take its decision within one month. The matter shall not be referred to EBA after the end of the six-month period or after a joint decision has been reached.
The decision shall be set out in a document containing the fully reasoned decision and shall take into account the views and reservations of the other competent authorities expressed during the six-month period.
The decision shall be provided to the consolidating supervisor that informs the EU parent institution, the EU parent financial holding company or the EU parent mixed financial holding company.
If, at the end of the six-month period, the consolidating supervisor has referred the matter to EBA in accordance with Article 19 of Regulation (EU) No 1093/2010, the competent authority responsible for the supervision of the subsidiary on an individual basis shall defer its decision on point (b) of paragraph 1 of this Article and await any decision that EBA may take in accordance with Article 19(3) of that Regulation on its decision, and shall take its decision in conformity with the decision of EBA. The six-month period shall be deemed the conciliation period within the meaning of that Regulation. EBA shall take its decision within one month. The matter shall not be referred to EBA after the end of the six-month period or after a joint decision has been reached.
EBA shall submit those draft implementing technical standards to the Commission by 10 July 2025.
Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010.
Article 21
Joint decisions on the level of application of liquidity requirements
The joint decision shall be reached within six months after submission by the consolidating supervisor of a report identifying single liquidity sub-groups on the basis of the criteria laid down in Article 8. In the event of disagreement during the six-month period, the consolidating supervisor shall consult EBA at the request of any of the other competent authorities concerned. The consolidating supervisor may consult EBA on its own initiative.
The joint decision may also impose constraints on the location and ownership of liquid assets and require minimum amounts of liquid assets to be held by institutions that are exempt from the application of Part Six.
The joint decision shall be set out in a document containing the fully reasoned decision which shall be submitted to the parent institution of the liquidity subgroup by the consolidating supervisor.
However, any competent authority may during the six-month period refer to EBA the question whether the conditions in points (a) to (d) of Article 8(1) are met. In that case, EBA may carry out its non-binding mediation in accordance with Article 31(c) of Regulation (EU) No 1093/2010 and all the competent authorities involved shall defer their decisions pending the conclusion of the non-binding mediation. Where, during the mediation, no agreement has been reached by the competent authorities within three months, each competent authority responsible for supervision on an individual basis shall take its own decision taking into account the proportionality of benefits and risks at the level of the Member State of the parent institution and the proportionality of benefits and risks at the level of the Member State of the subsidiary. The matter shall not be referred to EBA after the end of the six-month period or after a joint decision has been reached.
The joint decision referred to in paragraph 1 and the decisions referred to in the second subparagraph of this paragraph shall be binding.
Article 22
Sub-consolidation in case of entities in third countries
Article 23
Undertakings in third countries
For the purposes of applying supervision on a consolidated basis in accordance with this Chapter, the terms ‘investment firm’, ‘credit institution’, financial institution', and ‘institution’ shall also apply to undertakings established in third countries, which, were they established in the Union, would fulfil the definitions of those terms in Article 4.
Article 24
Valuation of assets and off-balance sheet items
PART TWO
OWN FUNDS AND ELIGIBLE LIABILITIES
TITLE I
ELEMENTS OF OWN FUNDS
CHAPTER 1
Tier 1 capital
Article 25
Tier 1 capital
The Tier 1 capital of an institution consists of the sum of the Common Equity Tier 1 capital and Additional Tier 1 capital of the institution.
CHAPTER 2
Common Equity Tier 1 capital
Section 1
Common Equity Tier 1 items and instruments
Article 26
Common Equity Tier 1 items
Common Equity Tier 1 items of institutions consist of the following:
capital instruments, provided that the conditions laid down in Article 28 or, where applicable, Article 29 are met;
share premium accounts related to the instruments referred to in point (a);
retained earnings;
accumulated other comprehensive income;
other reserves;
funds for general banking risk.
The items referred to in points (c) to (f) shall be recognised as Common Equity Tier 1 only where they are available to the institution for unrestricted and immediate use to cover risks or losses as soon as these occur.
For the purposes of point (c) of paragraph 1, institutions may include interim or year-end profits in Common Equity Tier 1 capital before the institution has taken a formal decision confirming the final profit or loss of the institution for the year only with the prior permission of the competent authority. The competent authority shall grant permission where the following conditions are met:
those profits have been verified by persons independent of the institution that are responsible for the auditing of the accounts of that institution;
the institution has demonstrated to the satisfaction of the competent authority that any foreseeable charge or dividend has been deducted from the amount of those profits.
A verification of the interim or year-end profits of the institution shall provide an adequate level of assurance that those profits have been evaluated in accordance with the principles set out in the applicable accounting framework.
By way of derogation from the first subparagraph, institutions may classify as Common Equity Tier 1 instruments subsequent issuances of a form of Common Equity Tier 1 instruments for which they have already received that permission, provided that both of the following conditions are met:
the provisions governing those subsequent issuances are substantially the same as the provisions governing those issuances for which the institutions have already received permission;
institutions have notified those subsequent issuances to the competent authorities sufficiently in advance of their classification as Common Equity Tier 1 instruments.
Competent authorities shall consult EBA before granting permission for new forms of capital instruments to be classified as Common Equity Tier 1 instruments. Competent authorities shall have due regard to EBA's opinion and, where they decide to deviate from it, shall write to EBA within three months from the date of receipt of EBA's opinion setting out the rationale for deviating from the relevant opinion. This subparagraph does not apply to the capital instruments referred to in Article 31.
On the basis of information collected from competent authorities, EBA shall establish, maintain and publish a list of all forms of capital instruments in each Member State that qualify as Common Equity Tier 1 instruments. In accordance with Article 35 of Regulation (EU) No 1093/2010, EBA may collect any information in connection with Common Equity Tier 1 instruments that it considers necessary to establish compliance with the criteria set out in Article 28 or, where applicable, Article 29 of this Regulation and for the purpose of maintaining and updating the list referred to in this subparagraph.
Following the review process set out in Article 80 and where there is sufficient evidence that the relevant capital instruments do not meet or have ceased to meet the criteria set out in Article 28 or, where applicable, Article 29, EBA may decide not to add those instruments to the list referred to in the fourth subparagraph or remove them from that list, as the case may be. EBA shall make an announcement to that effect that shall also refer to the relevant competent authority's position on the matter. This subparagraph does not apply to the capital instruments referred to in Article 31.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 27
Capital instruments of mutuals, cooperative societies, savings institutions or similar institutions in Common Equity Tier 1 items
Common Equity Tier 1 items shall include any capital instrument issued by an institution under its statutory terms provided that the following conditions are met:
the institution is of a type that is defined under applicable national law and which competent authorities consider to qualify as any of the following:
a mutual;
a cooperative society;
a savings institution;
a similar institution;
a credit institution which is wholly owned by one of the institutions referred to in points (i) to (iv) and has approval from the relevant competent authority to make use of the provisions in this Article, provided that, and for as long as, 100 % of the ordinary shares in issue in the credit institution are held directly or indirectly by an institution referred to in those points;
the conditions laid down in Articles 28 or, where applicable, Article 29, are met.
Those mutuals, cooperative societies or savings institutions recognised as such under applicable national law prior to 31 December 2012 shall continue to be classified as such for the purposes of this Part, provided that they continue to meet the criteria that determined such recognition.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 28
Common Equity Tier 1 instruments
Capital instruments shall qualify as Common Equity Tier 1 instruments only if all the following conditions are met:
the instruments are issued directly by the institution with the prior approval of the owners of the institution or, where permitted under applicable national law, the management body of the institution;
the instruments are fully paid up and the acquisition of ownership of those instruments is not funded directly or indirectly by the institution;
the instruments meet all the following conditions as regards their classification:
they qualify as capital within the meaning of Article 22 of Directive 86/635/EEC;
they are classified as equity within the meaning of the applicable accounting framework;
they are classified as equity capital for the purposes of determining balance sheet insolvency, where applicable under national insolvency law;
the instruments are clearly and separately disclosed on the balance sheet in the financial statements of the institution;
the instruments are perpetual;
the principal amount of the instruments may not be reduced or repaid, except in either of the following cases:
the liquidation of the institution;
discretionary repurchases of the instruments or other discretionary means of reducing capital, where the institution has received the prior permission of the competent authority in accordance with Article 77;
the provisions governing the instruments do not indicate expressly or implicitly that the principal amount of the instruments would or might be reduced or repaid other than in the liquidation of the institution, and the institution does not otherwise provide such an indication prior to or at issuance of the instruments, except in the case of instruments referred to in Article 27 where the refusal by the institution to redeem such instruments is prohibited under applicable national law;
the instruments meet the following conditions as regards distributions:
there is no preferential distribution treatment regarding the order of distribution payments, including in relation to other Common Equity Tier 1 instruments, and the terms governing the instruments do not provide preferential rights to payment of distributions;
distributions to holders of the instruments may be paid only out of distributable items;
the conditions governing the instruments do not include a cap or other restriction on the maximum level of distributions, except in the case of the instruments referred to in Article 27;
the level of distributions is not determined on the basis of the amount for which the instruments were purchased at issuance, except in the case of the instruments referred to in Article 27;
the conditions governing the instruments do not include any obligation for the institution to make distributions to their holders and the institution is not otherwise subject to such an obligation;
non-payment of distributions does not constitute an event of default of the institution;
the cancellation of distributions imposes no restrictions on the institution;
compared to all the capital instruments issued by the institution, the instruments absorb the first and proportionately greatest share of losses as they occur, and each instrument absorbs losses to the same degree as all other Common Equity Tier 1 instruments;
the instruments rank below all other claims in the event of insolvency or liquidation of the institution;
the instruments entitle their owners to a claim on the residual assets of the institution, which, in the event of its liquidation and after the payment of all senior claims, is proportionate to the amount of such instruments issued and is not fixed or subject to a cap, except in the case of the capital instruments referred to in Article 27;
the instruments are neither secured nor subject to a guarantee that enhances the seniority of the claim by any of the following:
the institution or its subsidiaries;
the parent undertaking of the institution or its subsidiaries;
the parent financial holding company or its subsidiaries;
the mixed activity holding company or its subsidiaries;
the mixed financial holding company and its subsidiaries;
any undertaking that has close links with the entities referred to in points (i) to (v);
the instruments are not subject to any arrangement, contractual or otherwise, that enhances the seniority of claims under the instruments in insolvency or liquidation.
The condition set out in point (j) of the first subparagraph shall be deemed to be met, notwithstanding the instruments are included in Additional Tier 1 or Tier 2 by virtue of Article 484(3), provided that they rank pari passu.
For the purposes of point (b) of the first subparagraph, only the part of a capital instrument that is fully paid up shall be eligible to qualify as a Common Equity Tier 1 instrument.
The condition laid down in point (f) of paragraph 1 shall be deemed to be met notwithstanding the reduction of the principal amount of the capital instrument within a resolution procedure or as a consequence of a write down of capital instruments required by the resolution authority responsible for the institution.
The condition laid down in point (g) of paragraph 1 shall be deemed to be met notwithstanding the provisions governing the capital instrument indicating expressly or implicitly that the principal amount of the instrument would or might be reduced within a resolution procedure or as a consequence of a write down of capital instruments required by the resolution authority responsible for the institution.
The condition set out in point (h)(v) of the first subparagraph of paragraph 1 shall be considered to be met notwithstanding a subsidiary being subject to a profit and loss transfer agreement with its parent undertaking, according to which the subsidiary is obliged to transfer, following the preparation of its annual financial statements, its annual result to the parent undertaking, where all the following conditions are met:
the parent undertaking owns 90 % or more of the voting rights and capital of the subsidiary;
the parent undertaking and the subsidiary are located in the same Member State;
the agreement was concluded for legitimate taxation purposes;
in preparing the annual financial statement, the subsidiary has discretion to decrease the amount of distributions by allocating a part or all of its profits to its own reserves or funds for general banking risk before making any payment to its parent undertaking;
the parent undertaking is obliged under the agreement to fully compensate the subsidiary for all losses of the subsidiary;
the agreement is subject to a notice period according to which the agreement can be terminated only by the end of an accounting year, with such termination taking effect no earlier than the beginning of the following accounting year, leaving the parent undertaking's obligation to fully compensate the subsidiary for all losses incurred during the current accounting year unchanged.
Where an institution has entered into a profit and loss transfer agreement, it shall notify the competent authority without delay and provide the competent authority with a copy of the agreement. The institution shall also notify the competent authority without delay of any changes to the profit and loss transfer agreement and the termination thereof. An institution shall not enter into more than one profit and loss transfer agreement.
EBA shall develop draft regulatory technical standards to specify the following:
the applicable forms and nature of indirect funding of own funds instruments;
whether and when multiple distributions would constitute a disproportionate drag on own funds;
the meaning of preferential distributions.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 29
Capital instruments issued by mutuals, cooperative societies, savings institutions and similar institutions
The following conditions shall be met as regards redemption of the capital instruments:
except where prohibited under applicable national law, the institution shall be able to refuse the redemption of the instruments;
where the refusal by the institution of the redemption of instruments is prohibited under applicable national law, the provisions governing the instruments shall give the institution the ability to limit their redemption;
refusal to redeem the instruments, or the limitation of the redemption of the instruments where applicable, may not constitute an event of default of the institution.
The condition laid down in the first subparagraph is without prejudice to the possibility for a mutual, cooperative society, savings institution or a similar institution to recognise within Common Equity Tier 1 instruments that do not afford voting rights to the holder and that meet all the following conditions:
the claim of the holders of the non-voting instruments in the insolvency or liquidation of the institution is proportionate to the share of the total Common Equity Tier 1 instruments that those non-voting instruments represent;
the instruments otherwise qualify as Common Equity Tier 1 instruments.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 30
Consequences of the conditions for Common Equity Tier 1 instruments ceasing to be met
The following shall apply where, in the case of a Common Equity Tier 1 instrument, the conditions laid down in Article 28 or, where applicable, Article 29 cease to be met:
that instrument shall immediately cease to qualify as a Common Equity Tier 1 instrument;
the share premium accounts that relate to that instrument shall immediately cease to qualify as Common Equity Tier 1 items.
Article 31
Capital instruments subscribed by public authorities in emergency situations
In emergency situations, competent authorities may permit institutions to include in Common Equity Tier 1 capital instruments that comply at least with the conditions laid down in points (b) to (e) of Article 28(1) where all the following conditions are met:
the capital instruments are issued after 1 January 2014;
the capital instruments are considered State aid by the Commission;
the capital instruments are issued within the context of recapitalisation measures pursuant to State aid- rules existing at the time;
the capital instruments are fully subscribed and held by the State or a relevant public authority or public-owned entity;
the capital instruments are able to absorb losses;
except for the capital instruments referred to in Article 27, in the event of liquidation, the capital instruments entitle their owners to a claim on the residual assets of the institution after the payment of all senior claims;
there are adequate exit mechanisms of the State or, where applicable, a relevant public authority or public-owned entity;
the competent authority has granted its prior permission and has published its decision together with an explanation of that decision.
Section 2
Prudential filters
Article 32
Securitised assets
An institution shall exclude from any element of own funds any increase in its equity under the applicable accounting framework that results from securitised assets, including the following:
such an increase associated with future margin income that results in a gain on sale for the institution;
where the institution is the originator of a securitisation, net gains that arise from the capitalisation of future income from the securitised assets that provide credit enhancement to positions in the securitisation.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 33
Cash flow hedges and changes in the value of own liabilities
Institutions shall not include the following items in any element of own funds:
the fair value reserves related to gains or losses on cash flow hedges of financial instruments that are not valued at fair value, including projected cash flows;
gains or losses on liabilities of the institution that are valued at fair value that result from changes in the own credit standing of the institution;
fair value gains and losses on derivative liabilities of the institution that result from changes in the own credit risk of the institution.
Without prejudice to point (b) of paragraph 1, institutions may include the amount of gains and losses on their liabilities in own funds where all the following conditions are met:
the liabilities are in the form of bonds as referred to in Article 52(4) of Directive 2009/65/EC;
the changes in the value of the institution's assets and liabilities are due to the same changes in the institution's own credit standing;
there is a close correspondence between the value of the bonds referred to in point (a) and the value of the institution's assets;
it is possible to redeem the mortgage loans by buying back the bonds financing the mortgage loans at market or nominal value.
EBA shall submit those draft regulatory technical standards to the Commission by 30 September 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 34
Additional value adjustments
EBA shall submit those draft regulatory technical standards to the Commission by 10 July 2026.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 35
Unrealised gains and losses measured at fair value
Except in the case of the items referred to in Article 33, institutions shall not make adjustments to remove from their own funds unrealised gains or losses on their assets or liabilities measured at fair value.
Section 3
Deductions from Common Equity Tier 1 items, exemptions and alternatives
Sub-Section 1
Deductions from Common Equity Tier 1 items
Article 36
Deductions from Common Equity Tier 1 items
Institutions shall deduct the following from Common Equity Tier 1 items:
losses for the current financial year;
intangible assets with the exception of prudently valued software assets the value of which is not negatively affected by resolution, insolvency or liquidation of the institution;
deferred tax assets that rely on future profitability;
for institutions calculating risk-weighted exposure amounts using the Internal Ratings Based Approach (the IRB Approach), negative amounts resulting from the calculation of expected loss amounts laid down in Articles 158 and 159;
defined benefit pension fund assets on the balance sheet of the institution;
direct, indirect and synthetic holdings by an institution of own Common Equity Tier 1 instruments, including own Common Equity Tier 1 instruments that an institution is under an actual or contingent obligation to purchase by virtue of an existing contractual obligation;
direct, indirect and synthetic holdings of the Common Equity Tier 1 instruments of financial sector entities where those entities have a reciprocal cross holding with the institution that the competent authority considers to have been designed to inflate artificially the own funds of the institution;
the applicable amount of direct, indirect and synthetic holdings by the institution of Common Equity Tier 1 instruments of financial sector entities where the institution does not have a significant investment in those entities;
the applicable amount of direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1 instruments of financial sector entities where the institution has a significant investment in those entities;
the amount of items required to be deducted from Additional Tier 1 items pursuant to Article 56 that exceeds the Additional Tier 1 items of the institution;
the exposure amount of the following items which qualify for a risk weight of 1 250 %, where the institution deducts that exposure amount from the amount of Common Equity Tier 1 items as an alternative to applying a risk weight of 1 250 %:
qualifying holdings outside the financial sector;
securitisation positions, in accordance with point (b) of Article 244(1), point (b) of Article 245(1) and Article 253;
free deliveries, in accordance with Article 379(3);
positions in a basket for which an institution cannot determine the risk weight under the IRB Approach, in accordance with Article 153(8);
equity exposures under an internal models approach, in accordance with Article 155(4).
any tax charge relating to Common Equity Tier 1 items foreseeable at the moment of its calculation, except where the institution suitably adjusts the amount of Common Equity Tier 1 items insofar as such tax charges reduce the amount up to which those items may be used to cover risks or losses;
the applicable amount of insufficient coverage for non-performing exposures;
for a minimum value commitment referred to in Article 132c(2), any amount by which the current market value of the units or shares in CIUs underlying the minimum value commitment falls short of the present value of the minimum value commitment and for which the institution has not already recognised a reduction of Common Equity Tier 1 items.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
EBA shall develop draft regulatory technical standards to specify the types of capital instruments of financial institutions and, in consultation with the European Supervisory Authority (European Insurance and Occupational Pensions Authority) (EIOPA) established by Regulation (EU) No 1094/2010 of the European Parliament and of the Council of 24 November 2010 ( 23 ), of third country insurance and reinsurance undertakings, and of undertakings excluded from the scope of Directive 2009/138/EC in accordance with Article 4 of that Directive that shall be deducted from the following elements of own funds:
Common Equity Tier 1 items;
Additional Tier 1 items;
Tier 2 items.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
EBA shall submit those draft regulatory technical standards to the Commission by 28 June 2020.
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.
Article 37
Deduction of intangible assets
Institutions shall determine the amount of intangible assets to be deducted in accordance with the following:
the amount to be deducted shall be reduced by the amount of associated deferred tax liabilities that would be extinguished if the intangible assets became impaired or were derecognised under the applicable accounting framework;
the amount to be deducted shall include goodwill included in the valuation of significant investments of the institution;
the amount to be deducted shall be reduced by the amount of the accounting revaluation of the subsidiaries' intangible assets derived from the consolidation of subsidiaries attributable to persons other than the undertakings included in the consolidation pursuant to Chapter 2 of Title II of Part One.
Article 38
Deduction of deferred tax assets that rely on future profitability
The amount of deferred tax assets that rely on future profitability may be reduced by the amount of the associated deferred tax liabilities of the institution, provided the following conditions are met:
the entity has a legally enforceable right under applicable national law to set off those current tax assets against current tax liabilities;
the deferred tax assets and the deferred tax liabilities relate to taxes levied by the same tax authority and on the same taxable entity.
The amount of associated deferred tax liabilities referred to in paragraph 4 shall be allocated between the following:
deferred tax assets that rely on future profitability and arise from temporary differences that are not deducted in accordance with Article 48(1);
all other deferred tax assets that rely on future profitability.
Institutions shall allocate the associated deferred tax liabilities according to the proportion of deferred tax assets that rely on future profitability that the items referred to in points (a) and (b) represent.
Article 39
Tax overpayments, tax loss carry backs and deferred tax assets that do not rely on future profitability
The following items shall not be deducted from own funds and shall be subject to a risk weight in accordance with Chapter 2 or 3 of Title II of Part Three, as applicable:
overpayments of tax by the institution for the current year;
current year tax losses of the institution carried back to previous years that give rise to a claim on, or a receivable from, a central government, regional government or local tax authority.
►M8 Deferred tax assets that do not rely on future profitability shall be limited to deferred tax assets which were created before 23 November 2016 and which arise from temporary differences, where all the following conditions are met: ◄
they are automatically and mandatorily replaced without delay with a tax credit in the event that the institution reports a loss when the annual financial statements of the institution are formally approved, or in the event of liquidation or insolvency of the institution;
an institution is able under the applicable national tax law to offset a tax credit referred to in point (a) against any tax liability of the institution or any other undertaking included in the same consolidation as the institution for tax purposes under that law or any other undertaking subject to the supervision on a consolidated basis in accordance with Chapter 2 of Title II of Part One;
where the amount of tax credits referred to in point (b) exceeds the tax liabilities referred to in that point, any such excess is replaced without delay with a direct claim on the central government of the Member State in which the institution is incorporated.
Institutions shall apply a risk weight of 100 % to deferred tax assets where the conditions laid down in points (a), (b) and (c) are met.
Article 40
Deduction of negative amounts resulting from the calculation of expected loss amounts
The amount to be deducted in accordance with point (d) of Article 36(1) shall not be reduced by a rise in the level of deferred tax assets that rely on future profitability, or other additional tax effects, that could occur if provisions were to rise to the level of expected losses referred to in Section 3 of Chapter 3 of Title II of Part Three.
Article 41
Deduction of defined benefit pension fund assets
For the purposes of point (e) of Article 36(1), the amount of defined benefit pension fund assets to be deducted shall be reduced by the following:
the amount of any associated deferred tax liability which could be extinguished if the assets became impaired or were derecognised under the applicable accounting framework;
the amount of assets in the defined benefit pension fund which the institution has an unrestricted ability to use, provided that the institution has received the prior permission of the competent authority.
Those assets used to reduce the amount to be deducted shall receive a risk weight in accordance with Chapter 2 or 3 of Title II of Part Three, as applicable.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 42
Deduction of holdings of own Common Equity Tier 1 instruments
For the purposes of point (f) of Article 36(1), institutions shall calculate holdings of own Common Equity Tier 1 instruments on the basis of gross long positions subject to the following exceptions:
institutions may calculate the amount of holdings of own Common Equity Tier 1 instruments on the basis of the net long position provided that both the following conditions are met:
the long and short positions are in the same underlying exposure and the short positions involve no counterparty risk;
either both the long and the short positions are held in the trading book or both are held in the non-trading book;
institutions shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by calculating the underlying exposure to own Common Equity Tier 1 instruments included in those indices;
institutions may net gross long positions in own Common Equity Tier 1 instruments resulting from holdings of index securities against short positions in own Common Equity Tier 1 instruments resulting from short positions in the underlying indices, including where those short positions involve counterparty risk, provided that both the following conditions are met:
the long and short positions are in the same underlying indices;
either both the long and the short positions are held in the trading book or both are held in the non-trading book.
Article 43
Significant investment in a financial sector entity
For the purposes of deduction, a significant investment of an institution in a financial sector entity shall arise where any of the following conditions is met:
the institution owns more than 10 % of the Common Equity Tier 1 instruments issued by that entity;
the institution has close links with that entity and owns Common Equity Tier 1 instruments issued by that entity;
the institution owns Common Equity Tier 1 instruments issued by that entity and the entity is not included in consolidation pursuant to Chapter 2 of Title II of Part One but is included in the same accounting consolidation as the institution for the purposes of financial reporting under the applicable accounting framework.
Article 44
Deduction of holdings of Common Equity Tier 1 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
Institutions shall make the deductions referred to in points (g), (h) and (i) of Article 36(1) in accordance with the following:
holdings of Common Equity Tier 1 instruments and other capital instruments of financial sector entities shall be calculated on the basis of the gross long positions;
Tier 1 own-fund insurance items shall be treated as holdings of Common Equity Tier 1 instruments for the purposes of deduction.
Article 45
Deduction of holdings of Common Equity Tier 1 instruments of financial sector entities
Institutions shall make the deductions required by points (h) and (i) of Article 36(1) in accordance with the following provisions:
they may calculate direct, indirect and synthetic holdings of Common Equity Tier 1 instruments of the financial sector entities on the basis of the net long position in the same underlying exposure provided that both the following conditions are met:
the maturity date of the short position is either the same as, or later than the maturity date of the long position or the residual maturity of the short position is at least one year;
either both the long position and the short position are held in the trading book or both are held in the non-trading book;
they shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by calculating the underlying exposure to the capital instruments of the financial sector entities in those indices.
Article 46
Deduction of holdings of Common Equity Tier 1 instruments where an institution does not have a significant investment in a financial sector entity
For the purposes of point (h) of Article 36(1), institutions shall calculate the applicable amount to be deducted by multiplying the amount referred to in point (a) of this paragraph by the factor derived from the calculation referred to in point (b) of this paragraph:
the aggregate amount by which the direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1, Additional Tier 1 and Tier 2 instruments of financial sector entities in which the institution does not have a significant investment exceeds 10 % of the aggregate amount of Common Equity Tier 1 items of the institution calculated after applying the following to Common Equity Tier 1 items:
Articles 32 to 35;
the deductions referred to in points (a) to (g), points (k)(ii) to (v) and point (l) of Article 36(1), excluding the amount to be deducted for deferred tax assets that rely on future profitability and arise from temporary differences;
Articles 44 and 45;
the amount of direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1 instruments of those financial sector entities in which the institution does not have a significant investment divided by the aggregate amount of direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1, Additional Tier 1 and Tier 2 instruments of those financial sector entities.
The amount to be deducted pursuant to paragraph 1 shall be apportioned across all Common Equity Tier 1 instruments held. Institutions shall determine the amount of each Common Equity Tier 1 instrument that is deducted pursuant to paragraph 1 by multiplying the amount specified in point (a) of this paragraph by the proportion specified in point (b) of this paragraph:
the amount of holdings required to be deducted pursuant to paragraph 1;
the proportion of the aggregate amount of direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1 instruments of financial sector entities in which the institution does not have a significant investment represented by each Common Equity Tier 1 instrument held.
Institutions shall determine the amount of each Common Equity Tier 1 instrument that is risk weighted pursuant to paragraph 4 by multiplying the amount specified in point (a) of this paragraph by the amount specified in point (b) of this paragraph:
the amount of holdings required to be risk weighted pursuant to paragraph 4;
the proportion resulting from the calculation in point (b) of paragraph 3.
Article 47
Deduction of holdings of Common Equity Tier 1 instruments where an institution has a significant investment in a financial sector entity
For the purposes of point (i) of Article 36(1), the applicable amount to be deducted from Common Equity Tier 1 items shall exclude underwriting positions held for five working days or fewer and shall be determined in accordance with Articles 44 and 45 and Sub-section 2.
Article 47a
Non-performing exposures
For the purposes of point (m) of Article 36(1), exposure shall include any of the following items, provided they are not included in the trading book of the institution:
a debt instrument, including a debt security, a loan, an advance and a demand deposit;
a loan commitment given, a financial guarantee given or any other commitment given, irrespective of whether it is revocable or irrevocable, with the exception of undrawn credit facilities that may be cancelled unconditionally at any time and without notice, or that effectively provide for automatic cancellation due to deterioration in the borrower's creditworthiness.
For the purposes of point (m) of Article 36(1), the exposure value of a debt instrument that was purchased at a price lower than the amount owed by the debtor shall include the difference between the purchase price and the amount owed by the debtor.
For the purposes of point (m) of Article 36(1), the exposure value of a loan commitment given, a financial guarantee given or any other commitment given as referred to in point (b) of paragraph 1 of this Article shall be its nominal value, which shall represent the institution's maximum exposure to credit risk without taking account of any funded or unfunded credit protection. The nominal value of a loan commitment given shall be the undrawn amount that the institution has committed to lend and the nominal value of a financial guarantee given shall be the maximum amount the entity could have to pay if the guarantee is called on.
The nominal value referred to in the third subparagraph of this paragraph shall not take into account any specific credit risk adjustment, additional value adjustments in accordance with Articles 34 and 105, amounts deducted in accordance with point (m) of Article 36(1) or other own funds reductions related to the exposure.
For the purposes of point (m) of Article 36(1), the following exposures shall be classified as non-performing:
an exposure in respect of which a default is considered to have occurred in accordance with Article 178;
an exposure which is considered to be impaired in accordance with the applicable accounting framework;
an exposure under probation pursuant to paragraph 7, where additional forbearance measures are granted or where the exposure becomes more than 30 days past due;
an exposure in the form of a commitment that, were it drawn down or otherwise used, would likely not be paid back in full without realisation of collateral;
an exposure in form of a financial guarantee that is likely to be called by the guaranteed party, including where the underlying guaranteed exposure meets the criteria to be considered as non-performing.
For the purposes of point (a), where an institution has on-balance-sheet exposures to an obligor that are past due by more than 90 days and that represent more than 20 % of all on-balance-sheet exposures to that obligor, all on- and off-balance-sheet exposures to that obligor shall be considered to be non-performing.
Exposures that have not been subject to a forbearance measure shall cease to be classified as non-performing for the purposes of point (m) of Article 36(1) where all the following conditions are met:
the exposure meets the exit criteria applied by the institution for the discontinuation of the classification as impaired in accordance with the applicable accounting framework and of the classification as defaulted in accordance with Article 178;
the situation of the obligor has improved to the extent that the institution is satisfied that full and timely repayment is likely to be made;
the obligor does not have any amount past due by more than 90 days.
Non-performing exposures subject to forbearance measures shall cease to be classified as non-performing for the purposes of point (m) of Article 36(1) where all the following conditions are met:
the exposures have ceased to be in a situation that would lead to their classification as non-performing under paragraph 3;
at least one year has passed since the date on which the forbearance measures were granted and the date on which the exposures were classified as non-performing, whichever is later;
there is no past-due amount following the forbearance measures and the institution, on the basis of the analysis of the obligor's financial situation, is satisfied about the likelihood of the full and timely repayment of the exposure.
Full and timely repayment may be considered likely where the obligor has executed regular and timely payments of amounts equal to either of the following:
the amount that was past due before the forbearance measure was granted, where there were amounts past due;
the amount that has been written-off under the forbearance measures granted, where there were no amounts past due.
Where a non-performing exposure has ceased to be classified as non-performing pursuant to paragraph 6, such exposure shall be under probation until all the following conditions are met:
at least two years have passed since the date on which the exposure subject to forbearance measures was re-classified as performing;
regular and timely payments have been made during at least half of the period that the exposure would be under probation, leading to the payment of a substantial aggregate amount of principal or interest;
none of the exposures to the obligor is more than 30 days past due.
Article 47b
Forbearance measures
Forbearance measure is a concession by an institution towards an obligor that is experiencing or is likely to experience difficulties in meeting its financial commitments. A concession may entail a loss for the lender and shall refer to either of the following actions:
a modification of the terms and conditions of a debt obligation, where such modification would not have been granted had the obligor not experienced difficulties in meeting its financial commitments;
a total or partial refinancing of a debt obligation, where such refinancing would not have been granted had the obligor not experienced difficulties in meeting its financial commitments.
At least the following situations shall be considered forbearance measures:
new contract terms are more favourable to the obligor than the previous contract terms, where the obligor is experiencing or is likely to experience difficulties in meeting its financial commitments;
new contract terms are more favourable to the obligor than contract terms offered by the same institution to obligors with a similar risk profile at that time, where the obligor is experiencing or is likely to experience difficulties in meeting its financial commitments;
the exposure under the initial contract terms was classified as non-performing before the modification to the contract terms or would have been classified as non-performing in the absence of modification to the contract terms;
the measure results in a total or partial cancellation of the debt obligation;
the institution approves the exercise of clauses that enable the obligor to modify the terms of the contract and the exposure was classified as non-performing before the exercise of those clauses, or would be classified as non-performing were those clauses not exercised;
at or close to the time of the granting of debt, the obligor made payments of principal or interest on another debt obligation with the same institution, which was classified as a non-performing exposure or would have been classified as non-performing in the absence of those payments;
the modification to the contract terms involves repayments made by taking possession of collateral, where such modification constitutes a concession.
The following circumstances are indicators that forbearance measures may have been adopted:
the initial contract was past due by more than 30 days at least once during the three months prior to its modification or would be more than 30 days past due without modification;
at or close to the time of concluding the credit agreement, the obligor made payments of principal or interest on another debt obligation with the same institution that was past due by 30 days at least once during the three months prior to the granting of new debt;
the institution approves the exercise of clauses that enable the obligor to change the terms of the contract, and the exposure is 30 days past due or would be 30 days past due were those clauses not exercised.
Article 47c
Deduction for non-performing exposures
For the purposes of point (m) of Article 36(1), institutions shall determine the applicable amount of insufficient coverage separately for each non-performing exposure to be deducted from Common Equity Tier 1 items by subtracting the amount determined in point (b) of this paragraph from the amount determined in point (a) of this paragraph, where the amount referred to in point (a) exceeds the amount referred to in point (b):
the sum of:
the unsecured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 2;
the secured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 3;
the sum of the following items provided they relate to the same non-performing exposure:
specific credit risk adjustments;
additional value adjustments in accordance with Articles 34 and 105;
other own funds reductions;
for institutions calculating risk-weighted exposure amounts using the Internal Ratings Based Approach, the absolute value of the amounts deducted pursuant to point (d) of Article 36(1) which relate to non-performing exposures, where the absolute value attributable to each non-performing exposure is determined by multiplying the amounts deducted pursuant to point (d) of Article 36(1) by the contribution of the expected loss amount for the non-performing exposure to total expected loss amounts for defaulted or non-defaulted exposures, as applicable;
where a non-performing exposure is purchased at a price lower than the amount owed by the debtor, the difference between the purchase price and the amount owed by the debtor;
amounts written-off by the institution since the exposure was classified as non-performing.
The secured part of a non-performing exposure is that part of the exposure which, for the purpose of calculating own funds requirements pursuant to Title II of Part Three, is considered to be covered by a funded credit protection or unfunded credit protection or fully and completely secured by mortgages.
The unsecured part of a non-performing exposure corresponds to the difference, if any, between the value of the exposure as referred to in Article 47a(1) and the secured part of the exposure, if any.
For the purposes of point (a)(i) of paragraph 1, the following factors shall apply:
0,35 for the unsecured part of a non-performing exposure to be applied during the period between the first and the last day of the third year following its classification as non-performing;
1 for the unsecured part of a non-performing exposure to be applied as of the first day of the fourth year following its classification as non-performing.
For the purposes of point (a)(ii) of paragraph 1, the following factors shall apply:
0,25 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the fourth year following its classification as non-performing;
0,35 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the fifth year following its classification as non-performing;
0,55 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the sixth year following its classification as non-performing;
0,70 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the seventh year following its classification as non-performing;
0,80 for the part of a non-performing exposure secured by other funded or unfunded credit protection pursuant to Title II of Part Three to be applied during the period between the first and the last day of the seventh year following its classification as non-performing;
0,80 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the eighth year following its classification as non-performing;
1 for the part of a non-performing exposure secured by other funded or unfunded credit protection pursuant to Title II of Part Three to be applied as of the first day of the eighth year following its classification as non-performing;
0,85 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the ninth year following its classification as non-performing;
1 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied as of the first day of the tenth year following its classification as non-performing.
By way of derogation from paragraph 3 of this Article, the following factors shall apply to the part of the non-performing exposure guaranteed or insured by an official export credit agency or guaranteed or counter-guaranteed by an eligible protection provider referred to in points (a) to (e) of Article 201(1), unsecured exposures to which would be assigned a risk weight of 0 % under Chapter 2 of Title II of Part Three:
0 for the secured part of the non-performing exposure to be applied during the period between one year and seven years following its classification as non-performing; and
1 for the secured part of the non-performing exposure to be applied as of the first day of the eighth year following its classification as non-performing.
Those guidelines shall be issued in accordance with Article 16 of Regulation (EU) No 1093/2010.
By way of derogation from paragraph 3, where an exposure has, between two and six years following its classification as non-performing, been granted a forbearance measure, the factor applicable in accordance with paragraph 3 on the date on which the forbearance measure is granted shall be applicable for an additional period of one year.
This paragraph shall only apply in relation to the first forbearance measure that has been granted since the classification of the exposure as non-performing.
Sub-Section 2
Exemptions from and alternatives to deduction from Common Equity Tier 1 items
Article 48
Threshold exemptions from deduction from Common Equity Tier 1 items
In making the deductions required pursuant to points (c) and (i) of Article 36(1), institutions are not required to deduct the amounts of the items listed in points (a) and (b) of this paragraph which in aggregate are equal to or less than the threshold amount referred to in paragraph 2:
deferred tax assets that are dependent on future profitability and arise from temporary differences, and in aggregate are equal to or less than 10 % of the Common Equity Tier 1 items of the institution calculated after applying the following:
Articles 32 to 35;
points (a) to (h), points (k)(ii) to (v) and point (l) of Article 36(1), excluding deferred tax assets that rely on future profitability and arise from temporary differences.
where an institution has a significant investment in a financial sector entity, the direct, indirect and synthetic holdings of that institution of the Common Equity Tier 1 instruments of those entities that in aggregate are equal to or less than 10 % of the Common Equity Tier 1 items of the institution calculated after applying the following:
Article 32 to 35;
points (a) to (h), points (k)(ii) to (v) and point (l), of Article 36(1) excluding deferred tax assets that rely on future profitability and arise from temporary differences.
For the purposes of paragraph 1, the threshold amount shall be equal to the amount referred to in point (a) of this paragraph multiplied by the percentage referred to in point (b) of this paragraph:
the residual amount of Common Equity Tier 1 items after applying the adjustments and deductions in Articles 32 to 36 in full and without applying the threshold exemptions specified in this Article;
17,65 %.
For the purposes of paragraph 1, an institution shall determine the portion of deferred tax assets in the total amount of items that is not required to be deducted by dividing the amount specified in point (a) of this paragraph by the amount specified in point (b) of this paragraph:
the amount of deferred tax assets that are dependent on future profitability and arise from temporary differences, and in aggregate are equal to or less than 10 % of the Common Equity Tier 1 items of the institution;
the sum of the following:
the amount referred to in point (a);
the amount of direct, indirect and synthetic holdings by the institution of the own funds instruments of financial sector entities in which the institution has a significant investment, and in aggregate are equal to or less than 10 % of the Common Equity Tier 1 items of the institution.
The proportion of significant investments in the total amount of items that is not required to be deducted is equal to one minus the proportion referred to in the first subparagraph.
Article 49
Requirement for deduction where consolidation, supplementary supervision or institutional protection schemes are applied
For the purposes of calculating own funds on an individual basis, a sub-consolidated basis and a consolidated basis, where the competent authorities require or permit institutions to apply method 1, 2 or 3 of Annex I to Directive 2002/87/EC, the competent authorities may permit institutions not to deduct the holdings of own funds instruments of a financial sector entity in which the parent institution, parent financial holding company or parent mixed financial holding company or institution has a significant investment, provided that the conditions laid down in points (a) to (e) of this paragraph are met:
the financial sector entity is an insurance undertaking, a re-insurance undertaking or an insurance holding company;
that insurance undertaking, re-insurance undertaking or insurance holding company is included in the same supplementary supervision under Directive 2002/87/EC as the parent institution, parent financial holding company or parent mixed financial holding company or institution that has the holding;
the institution has received the prior permission of the competent authorities;
prior to granting the permission referred to in point (c), and on a continuing basis, the competent authorities are satisfied that the level of integrated management, risk management and internal control regarding the entities that would be included in the scope of consolidation under method 1, 2 or 3 is adequate;
the holdings in the entity belong to one of the following:
the parent credit institution;
the parent financial holding company;
the parent mixed financial holding company;
the institution;
a subsidiary of one of the entities referred to in points (i) to (iv) that is included in the scope of consolidation pursuant to Chapter 2 of Title II of Part One.
The method chosen shall be applied in a consistent manner over time.
Applying the approach referred to in the first subparagraph shall not entail disproportionate adverse effects on the whole or parts of the financial system in other Member States or in the Union as a whole forming or creating an obstacle to the functioning of the internal market.
This paragraph shall not apply when calculating own funds for the purposes of the requirements laid down in Articles 92a and 92b, which shall be calculated in accordance with the deduction framework set out in Article 72e(4).
This paragraph shall not apply with regard to the deductions set out in Article 72e(5).
Competent authorities may, for the purposes of calculating own funds on an individual or sub-consolidated basis permit institutions not to deduct holdings of own funds instruments in the following cases:
where an institution has a holding in another institution and the conditions referred to in points (i) to (v) are met:
the institutions fall within the same institutional protection scheme referred to in Article 113(7);
the competent authorities have granted the permission referred to in Article 113(7);
the conditions laid down in Article 113(7) are satisfied;
the institutional protection scheme draws up a consolidated balance sheet referred to in point (e) of Article 113(7) or, where it is not required to draw up consolidated accounts, an extended aggregated calculation that is, to the satisfaction of the competent authorities, equivalent to the provisions of Directive 86/635/EEC, which incorporates certain adaptations of the provisions of Directive 83/349/EEC or of Regulation (EC) No 1606/2002, governing the consolidated accounts of groups of credit institutions. The equivalence of that extended aggregated calculation shall be verified by an external auditor and in particular that the multiple use of elements eligible for the calculation of own funds as well as any inappropriate creation of own funds between the members of the institutional protection scheme is eliminated in the calculation. ►M8 The consolidated balance sheet or the extended aggregated calculation shall be reported to the competent authorities with the frequency set out in the implementing technical standards referred to in Article 430(7) ◄ ;
the institutions included in an institutional protection scheme meet together on a consolidated or extended aggregated basis the requirements laid down in Article 92 and carry out reporting of compliance with those requirements in accordance with Article 430. ◄ Within an institutional protection scheme the deduction of the interest owned by co-operative members or legal entities, which are not members of the institutional protection scheme, is not required, provided that the multiple use of elements eligible for the calculation of own funds as well as any inappropriate creation of own funds between the members of the institutional protection scheme and the minority shareholder, when it is an institution, is eliminated.
where a regional credit institution has a holding in its central or another regional credit institution and the conditions laid down in points (a)(i) to (v) are met.
EBA, EIOPA and ESMA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010, of Regulation (EU) No 1094/2010 and of Regulation (EU) No 1095/2010 respectively.
Section 4
Common Equity Tier 1 capital
Article 50
Common Equity Tier 1 capital
The Common Equity Tier 1 capital of an institution shall consist of Common Equity Tier 1 items after the application of the adjustments required by Articles 32 to 35, the deductions pursuant to Article 36 and the exemptions and alternatives laid down in Articles 48, 49 and 79.
CHAPTER 3
Additional Tier 1 capital
Section 1
Additional Tier 1 items and instruments
Article 51
Additional Tier 1 items
Additional Tier 1 items shall consist of the following:
capital instruments, where the conditions laid down in Article 52(1) are met;
the share premium accounts related to the instruments referred to in point (a).
Instruments included under point (a) shall not qualify as Common Equity Tier 1 or Tier 2 items.
Article 52
Additional Tier 1 instruments
Capital instruments shall qualify as Additional Tier 1 instruments only if the following conditions are met:
the instruments are directly issued by an institution and fully paid up;
the instruments are not owned by any of the following:
the institution or its subsidiaries;
an undertaking in which the institution has a participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of that undertaking;
the acquisition of ownership of the instruments is not funded directly or indirectly by the institution;
the instruments rank below Tier 2 instruments in the event of the insolvency of the institution;
the instruments are neither secured nor subject to a guarantee that enhances the seniority of the claims by any of the following:
the institution or its subsidiaries;
the parent undertaking of the institution or its subsidiaries;
the parent financial holding company or its subsidiaries;
the mixed activity holding company or its subsidiaries;
the mixed financial holding company or its subsidiaries;
any undertaking that has close links with entities referred to in points (i) to (v);
the instruments are not subject to any arrangement, contractual or otherwise, that enhances the seniority of the claim under the instruments in insolvency or liquidation;
the instruments are perpetual and the provisions governing them include no incentive for the institution to redeem them;
where the instruments include one or more early redemption options including call options, the options are exercisable at the sole discretion of the issuer;
the instruments may be called, redeemed or repurchased only where the conditions laid down in Article 77 are met, and not before five years after the date of issuance except where the conditions laid down in Article 78(4) are met;
the provisions governing the instruments do not indicate explicitly or implicitly that the instruments would be called, redeemed or repurchased, as applicable, by the institution other than in the case of the insolvency or liquidation of the institution and the institution does not otherwise provide such an indication;
the institution does not indicate explicitly or implicitly that the competent authority would consent to a request to call, redeem or repurchase the instruments;
distributions under the instruments meet the following conditions:
they are paid out of distributable items;
the level of distributions made on the instruments will not be amended on the basis of the credit standing of the institution or its parent undertaking;
the provisions governing the instruments give the institution full discretion at all times to cancel the distributions on the instruments for an unlimited period and on a non-cumulative basis, and the institution may use such cancelled payments without restriction to meet its obligations as they fall due;
cancellation of distributions does not constitute an event of default of the institution;
the cancellation of distributions imposes no restrictions on the institution;
the instruments do not contribute to a determination that the liabilities of an institution exceed its assets, where such a determination constitutes a test of insolvency under applicable national law;
the provisions governing the instruments require that, upon the occurrence of a trigger event, the principal amount of the instruments be written down on a permanent or temporary basis or the instruments be converted to Common Equity Tier 1 instruments;
the provisions governing the instruments include no feature that could hinder the recapitalisation of the institution;
where the issuer is established in a third country and has been designated in accordance with Article 12 of Directive 2014/59/EU as part of a resolution group the resolution entity of which is established in the Union or where the issuer is established in a Member State, the law or contractual provisions governing the instruments require that, upon a decision by the resolution authority to exercise the write-down and conversion powers referred to in Article 59 of that Directive, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted to Common Equity Tier 1 instruments;
where the issuer is established in a third country and has not been designated in accordance with Article 12 of Directive 2014/59/EU as part of a resolution group the resolution entity of which is established in the Union, the law or contractual provisions governing the instruments require that, upon a decision by the relevant third-country authority, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted into Common Equity Tier 1 instruments;
where the issuer is established in a third country and has been designated in accordance with Article 12 of Directive 2014/59/EU as part of a resolution group the resolution entity of which is established in the Union or where the issuer is established in a Member State, the instruments may only be issued under, or be otherwise subject to the laws of a third country where, under those laws, the exercise of the write-down and conversion powers referred to in Article 59 of that Directive is effective and enforceable on the basis of statutory provisions or legally enforceable contractual provisions that recognise resolution or other write-down or conversion actions;
the instruments are not subject to set-off or netting arrangements that would undermine their capacity to absorb losses.
The condition set out in point (d) of the first subparagraph shall be deemed to be met notwithstanding the fact that the instruments are included in Additional Tier 1 or Tier 2 by virtue of Article 484(3), provided that they rank pari passu.
For the purposes of point (a) of the first subparagraph, only the part of a capital instrument that is fully paid up shall be eligible to qualify as an Additional Tier 1 instrument.
EBA shall develop draft regulatory technical standards to specify all the following:
the form and nature of incentives to redeem;
the nature of any write up of the principal amount of an Additional Tier 1 instrument following a write down of its principal amount on a temporary basis;
the procedures and timing for the following:
determining that a trigger event has occurred;
writing up the principal amount of an Additional Tier 1 instrument following a write down of its principal amount on a temporary basis;
features of instruments that could hinder the recapitalisation of the institution;
the use of special purpose entities for indirect issuance of own funds instruments.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 53
Restrictions on the cancellation of distributions on Additional Tier 1 instruments and features that could hinder the recapitalisation of the institution
For the purposes of points (l)(v) and (o) of Article 52(1), the provisions governing Additional Tier 1 instruments shall, in particular, not include the following:
a requirement for distributions on the instruments to be made in the event of a distribution being made on an instrument issued by the institution that ranks to the same degree as, or more junior than, an Additional Tier 1 instrument, including a Common Equity Tier 1 instrument;
a requirement for the payment of distributions on Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments to be cancelled in the event that distributions are not made on those Additional Tier 1 instruments;
an obligation to substitute the payment of interest or dividend by a payment in any other form. The institution shall not otherwise be subject to such an obligation.
Article 54
Write down or conversion of Additional Tier 1 instruments
For the purposes of point (n) of Article 52(1), the following provisions shall apply to Additional Tier 1 instruments:
a trigger event occurs when the Common Equity Tier 1 capital ratio of the institution referred to in point (a) of Article 92(1) falls below either of the following:
5,125 %;
a level higher than 5,125 %, where determined by the institution and specified in the provisions governing the instrument;
institutions may specify in the provisions governing the instrument one or more trigger events in addition to that referred to in point (a);
where the provisions governing the instruments require them to be converted into Common Equity Tier 1 instruments upon the occurrence of a trigger event, those provisions shall specify either of the following:
the rate of such conversion and a limit on the permitted amount of conversion;
a range within which the instruments will convert into Common Equity Tier 1 instruments;
where the provisions governing the instruments require their principal amount to be written down upon the occurrence of a trigger event, the write down shall reduce all the following:
the claim of the holder of the instrument in the insolvency or liquidation of the institution;
the amount required to be paid in the event of the call or redemption of the instrument;
the distributions made on the instrument;
where the Additional Tier 1 instruments have been issued by a subsidiary undertaking established in a third country, the 5,125 % or higher trigger referred to in point (a) shall be calculated in accordance with the national law of that third country or contractual provisions governing the instruments, provided that the competent authority, after consulting EBA, is satisfied that those provisions are at least equivalent to the requirements set out in this Article.
The aggregate amount of Additional Tier 1 instruments that is required to be written down or converted upon the occurrence of a trigger event shall be no less than the lower of the following:
the amount required to restore fully the Common Equity Tier 1 ratio of the institution to 5,125 %;
the full principal amount of the instrument.
When a trigger event occurs institutions shall do the following:
immediately inform the competent authorities;
inform the holders of the Additional Tier 1 instruments;
write down the principal amount of the instruments, or convert the instruments into Common Equity Tier 1 instruments without delay, but no later than within one month, in accordance with the requirement laid down in this Article.
Article 55
Consequences of the conditions for Additional Tier 1 instruments ceasing to be met
The following shall apply where, in the case of an Additional Tier 1 instrument, the conditions laid down in Article 52(1) cease to be met:
that instrument shall immediately cease to qualify as an Additional Tier 1 instrument;
the part of the share premium accounts that relates to that instrument shall immediately cease to qualify as an Additional Tier 1 item.
Section 2
Deductions from Additional Tier 1 items
Article 56
Deductions from Additional Tier 1 items
Institutions shall deduct the following from Additional Tier 1 items:
direct, indirect and synthetic holdings by an institution of own Additional Tier 1 instruments, including own Additional Tier 1 instruments that an institution could be obliged to purchase as a result of existing contractual obligations;
direct, indirect and synthetic holdings of the Additional Tier 1 instruments of financial sector entities with which the institution has reciprocal cross holdings that the competent authority considers to have been designed to inflate artificially the own funds of the institution;
the applicable amount determined in accordance with Article 60 of direct, indirect and synthetic holdings of the Additional Tier 1 instruments of financial sector entities, where an institution does not have a significant investment in those entities;
direct, indirect and synthetic holdings by the institution of the Additional Tier 1 instruments of financial sector entities where the institution has a significant investment in those entities, excluding underwriting positions held for five working days or fewer;
the amount of items required to be deducted from Tier 2 items pursuant to Article 66 that exceeds the Tier 2 items of the institution;
any tax charge relating to Additional Tier 1 items foreseeable at the moment of its calculation, except where the institution suitably adjusts the amount of Additional Tier 1 items insofar as such tax charges reduce the amount up to which those items may be applied to cover risks or losses.
Article 57
Deductions of holdings of own Additional Tier 1 instruments
For the purposes of point (a) of Article 56, institutions shall calculate holdings of own Additional Tier 1 instruments on the basis of gross long positions subject to the following exceptions:
institutions may calculate the amount of holdings of own Additional Tier 1 instruments on the basis of the net long position provided that both the following conditions are met:
the long and short positions are in the same underlying exposure and the short positions involve no counterparty risk;
either both the long and the short positions are held in the trading book or both are held in the non-trading book;
institutions shall determine the amount to be deducted for direct, indirect or synthetic holdings of index securities by calculating the underlying exposure to own Additional Tier 1 instruments in those indices;
institutions may net gross long positions in own Additional Tier 1 instruments resulting from holdings of index securities against short positions in own Additional Tier 1 instruments resulting from short positions in the underlying indices, including where those short positions involve counterparty risk, provided that both the following conditions are met:
the long and short positions are in the same underlying indices;
either both the long and the short positions are held in the trading book or both are held in the non-trading book;
Article 58
Deduction of holdings of Additional Tier 1 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
Institutions shall make the deductions required by points (b), (c) and (d) of Article 56 in accordance with the following:
holdings of Additional Tier 1 instruments shall be calculated on the basis of the gross long positions;
Additional Tier 1 own-fund insurance items shall be treated as holdings of Additional Tier 1 instruments for the purposes of deduction.
Article 59
Deduction of holdings of Additional Tier 1 instruments of financial sector entities
Institutions shall make the deductions required by points (c) and (d) of Article 56 in accordance with the following:
they may calculate direct, indirect and synthetic holdings of Additional Tier 1 instruments of the financial sector entities on the basis of the net long position in the same underlying exposure provided that both the following conditions are met:
the maturity date of the short position is either the same as, or later than the maturity date of the long position or the residual maturity of the short position is at least one year;
either both the short position and the long position are held in the trading book or both are held in the non-trading book.
they shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by calculating the underlying exposure to the capital instruments of the financial sector entities in those indices.
Article 60
Deduction of holdings of Additional Tier 1 instruments where an institution does not have a significant investment in a financial sector entity
For the purposes of point (c) of Article 56, institutions shall calculate the applicable amount to be deducted by multiplying the amount referred to in point (a) of this paragraph by the factor derived from the calculation referred to in point (b) of this paragraph:
the aggregate amount by which the direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1, Additional Tier 1 and Tier 2 instruments of financial sector entities in which the institution does not have a significant investment exceeds 10 % of the Common Equity Tier 1 items of the institution calculated after applying the following:
Article 32 to 35;
points (a) to (g), points (k)(ii) to (v) and point (l) of Article 36(1), excluding deferred tax assets that rely on future profitability and arise from temporary differences;
Articles 44 and 45;
the amount of direct, indirect and synthetic holdings by the institution of the Additional Tier 1 instruments of those financial sector entities in which the institution does not have a significant investment divided by the aggregate amount of all direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1, Additional Tier 1 and Tier 2 instruments of those financial sector entities.
The amount to be deducted pursuant to paragraph 1 shall be apportioned across all Additional Tier 1 instruments held. Institutions shall determine the amount of each Additional Tier 1 instrument to be deducted pursuant to paragraph 1 by multiplying the amount specified in point (a) of this paragraph by the proportion specified in point (b) of this paragraph:
the amount of holdings required to be deducted pursuant to paragraph 1;
the proportion of the aggregate amount of direct, indirect and synthetic holdings by the institution of the Additional Tier 1 instruments of financial sector entities in which the institution does not have a significant investment represented by each Additional Tier 1 instrument held.
Institutions shall determine the amount of each Additional Tier 1 instrument that is risk weighted pursuant to paragraph 4 by multiplying the amount specified in point (a) of this paragraph by the amount specified in point (b) of this paragraph:
the amount of holdings required to be risk weighted pursuant to paragraph 4;
the proportion resulting from the calculation in point (b) of paragraph 3.
Section 3
Additional Tier 1 capital
Article 61
Additional Tier 1 capital
The Additional Tier 1 capital of an institution shall consist of Additional Tier 1 items after the deduction of the items referred to in Article 56 and the application of Article 79.
CHAPTER 4
Tier 2 capital
Section 1
Tier 2 items and instruments
Article 62
Tier 2 items
Tier 2 items shall consist of the following:
capital instruments where the conditions set out in Article 63 are met, and to the extent specified in Article 64;
the share premium accounts related to instruments referred to in point (a);
for institutions calculating risk-weighted exposure amounts in accordance with Chapter 2 of Title II of Part Three, general credit risk adjustments, gross of tax effects, of up to 1,25 % of risk-weighted exposure amounts calculated in accordance with Chapter 2 of Title II of Part Three;
for institutions calculating risk-weighted exposure amounts under Chapter 3 of Title II of Part Three, positive amounts, gross of tax effects, resulting from the calculation laid down in Articles 158 and 159 up to 0,6 % of risk-weighted exposure amounts calculated under Chapter 3 of Title II of Part Three.
Items included under point (a) shall not qualify as Common Equity Tier 1 or Additional Tier 1 items.
Article 63
Tier 2 instruments
Capital instruments shall qualify as Tier 2 instruments, provided that the following conditions are met:
the instruments are directly issued by an institution and fully paid up;
the instruments are not owned by any of the following:
the institution or its subsidiaries;
an undertaking in which the institution has participation in the form of ownership, direct or by way of control, of 20 % or more of the voting rights or capital of that undertaking;
the acquisition of ownership of the instruments is not funded directly or indirectly by the institution;
the claim on the principal amount of the instruments under the provisions governing the instruments ranks below any claim from eligible liabilities instruments;
the instruments are not secured or are not subject to a guarantee that enhances the seniority of the claim by any of the following:
the institution or its subsidiaries;
the parent undertaking of the institution or its subsidiaries;
the parent financial holding company or its subsidiaries;
the mixed activity holding company or its subsidiaries;
the mixed financial holding company or its subsidiaries;
any undertaking that has close links with entities referred to in points (i) to (v);
the instruments are not subject to any arrangement that otherwise enhances the seniority of the claim under the instruments;
the instruments have an original maturity of at least five years;
the provisions governing the instruments do not include any incentive for their principal amount to be redeemed or repaid, as applicable by the institution prior to their maturity;
where the instruments include one or more early repayment options, including call options, the options are exercisable at the sole discretion of the issuer;
the instruments may be called, redeemed, repaid or repurchased early only where the conditions set out in Article 77 are met, and not before five years after the date of issuance, except where the conditions set out in Article 78(4) are met;
the provisions governing the instruments do not indicate explicitly or implicitly that the instruments would be called, redeemed, repaid or repurchased early, as applicable, by the institution other than in the case of the insolvency or liquidation of the institution and the institution does not otherwise provide such an indication;
the provisions governing the instruments do not give the holder the right to accelerate the future scheduled payment of interest or principal, other than in the case of the insolvency or liquidation of the institution;
the level of interest or dividends payments, as applicable, due on the instruments will not be amended on the basis of the credit standing of the institution or its parent undertaking;
where the issuer is established in a third country and has been designated in accordance with Article 12 of Directive 2014/59/EU as part of a resolution group the resolution entity of which is established in the Union or where the issuer is established in a Member State, the law or contractual provisions governing the instruments require that, upon a decision by the resolution authority to exercise the write-down and conversion powers referred to in Article 59 of that Directive, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted to Common Equity Tier 1 instruments;
where the issuer is established in a third country and has not been designated in accordance with Article 12 of Directive 2014/59/EU as a part of a resolution group the resolution entity of which is established in the Union, the law or contractual provisions governing the instruments require that, upon a decision by the relevant third-country authority, the principal amount of the instruments is to be written down on a permanent basis or the instruments are to be converted into Common Equity Tier 1 instruments;
where the issuer is established in a third country and has been designated in accordance with Article 12 of Directive 2014/59/EU as part of a resolution group the resolution entity of which is established in the Union or where the issuer is established in a Member State, the instruments may only be issued under, or be otherwise subject to the laws of a third country where, under those laws, the exercise of the write-down and conversion powers referred to in Article 59 of that Directive is effective and enforceable on the basis of statutory provisions or legally enforceable contractual provisions that recognise resolution or other write-down or conversion actions;
the instruments are not subject to set-off or netting arrangements that would undermine their capacity to absorb losses.
For the purposes of point (a) of the first paragraph, only the part of the capital instrument that is fully paid up shall be eligible to qualify as a Tier 2 instrument.
Article 64
Amortisation of Tier 2 instruments
The extent to which Tier 2 instruments qualify as Tier 2 items during the final five years of maturity of the instruments is calculated by multiplying the result derived from the calculation referred to in point (a) by the amount referred to in point (b) as follows:
the carrying amount of the instruments on the first day of the final five-year period of their contractual maturity divided by the number of days in that period;
the number of remaining days of contractual maturity of the instruments.
Article 65
Consequences of the conditions for Tier 2 instruments ceasing to be met
Where in the case of a Tier 2 instrument the conditions laid down in Article 63 cease to be met, the following shall apply:
that instrument shall immediately cease to qualify as a Tier 2 instrument;
the part of the share premium accounts that relate to that instrument shall immediately cease to qualify as Tier 2 items.
Section 2
Deductions from Tier 2 items
Article 66
Deductions from Tier 2 items
The following shall be deducted from Tier 2 items:
direct, indirect and synthetic holdings by an institution of own Tier 2 instruments, including own Tier 2 instruments that an institution could be obliged to purchase as a result of existing contractual obligations;
direct, indirect and synthetic holdings of the Tier 2 instruments of financial sector entities with which the institution has reciprocal cross holdings that the competent authority considers to have been designed to inflate artificially the own funds of the institution;
the applicable amount determined in accordance with Article 70 of direct, indirect and synthetic holdings of the Tier 2 instruments of financial sector entities, where an institution does not have a significant investment in those entities;
direct, indirect and synthetic holdings by the institution of the Tier 2 instruments of financial sector entities where the institution has a significant investment in those entities, excluding underwriting positions held for fewer than five working days;
the amount of items required to be deducted from eligible liabilities items pursuant to Article 72e that exceeds the eligible liabilities items of the institution.
Article 67
Deductions of holdings of own Tier 2 instruments
For the purposes of point (a) of Article 66, institutions shall calculate holdings on the basis of the gross long positions subject to the following exceptions:
institutions may calculate the amount of holdings on the basis of the net long position provided that both the following conditions are met:
the long and short positions are in the same underlying exposure and the short positions involve no counterparty risk;
either both the long and the short positions are held in the trading book or both are held in the non-trading book;
institutions shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by calculating the underlying exposure to own Tier 2 instruments in those indices;
institutions may net gross long positions in own Tier 2 instruments resulting from holdings of index securities against short positions in own Tier 2 instruments resulting from short positions in the underlying indices, including where those short positions involve counterparty risk, provided that both the following conditions are met:
the long and short positions are in the same underlying indices;
either both the long and the short positions are held in the trading book or both are held in the non-trading book.
Article 68
Deduction of holdings of Tier 2 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
Institutions shall make the deductions required by points (b), (c) and (d) of Article 66 in accordance with the following provisions:
holdings of Tier 2 instruments shall be calculated on the basis of the gross long positions;
holdings of Tier 2 own-fund insurance items and Tier 3 own-fund insurance items shall be treated as holdings of Tier 2 instruments for the purposes of deduction.
Article 69
Deduction of holdings of Tier 2 instruments of financial sector entities
Institutions shall make the deductions required by points (c) and (d) of Article 66 in accordance with the following:
they may calculate direct, indirect and synthetic holdings of Tier 2 instruments of the financial sector entities on the basis of the net long position in the same underlying exposure provided that both the following conditions are met:
the maturity date of the short position is either the same as, or later than the maturity date of the long position or the residual maturity of the short position is at least one year;
either both the long position and the short position are held in the trading book or both are held in the non-trading book;
they shall determine the amount to be deducted for direct, indirect and synthetic holdings of index securities by looking through to the underlying exposure to the capital instruments of the financial sector entities in those indices.
Article 70
Deduction of Tier 2 instruments where an institution does not have a significant investment in a relevant entity
For the purposes of point (c) of Article 66, institutions shall calculate the applicable amount to be deducted by multiplying the amount referred to in point (a) of this paragraph by the factor derived from the calculation referred to in point (b) of this paragraph:
the aggregate amount by which the direct, indirect and synthetic holdings by the institution of the Common Equity Tier 1, Additional Tier 1 and Tier 2 instruments of financial sector entities in which the institution does not have a significant investment exceeds 10 % of the Common Equity Tier 1 items of the institution calculated after applying the following:
Articles 32 to 35;