Changes from plenary report to adopted text

Removed(c) how the institution’s business model and strategy take account of ESG risks faced by the undertaking.

RemovedThe information referred to in the first paragraph shall be disclosed on an annual basis by small and non-complex institutions and on a semi-annual basis by other institutions.

RemovedEBA shall develop draft implementing technical standards specifying uniform disclosure formats for ESG risks, as laid down in Article 434a, ensuring that they are consistent with and uphold the principle of proportionality.’ For small and non-complex institutions, the formats shall not require disclosure of information beyond the information required to be reported to competent authorities in accordance with Article 430(1), points (h) and (i).’;

Removed(189a) the following Article is inserted:

Removed‘Article 449b

RemovedDisclosure of exposures to shadow banking entities

Removed1. Credit institutions shall disclose information concerning their individual exposures to shadow banking entities, including all potential risks to the institution arising from those exposures, and the potential impact of those risks, as well as the supervisory regime applicable to their non-bank financial intermediaries counterparties.

Removed2. EBA shall develop draft regulatory technical standards to specify the information that institutions are required to disclose, as referred to in paragraph 1, to avoid duplication of the disclosure obligations.

RemovedEBA shall submit those draft regulatory technical standards to the Commission by [12 months after the entry into force of this Regulation].

RemovedPower 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.’;

Removed(190) in Article 451(1), the following point (f) is added:

Removed‘(f) the amount of the additional own funds requirements based on the supervisory review process as referred to in Article 104(1), point (a), of Directive 2013/36/EU to address the risk of excessive leverage and its composition.’;

Removed(190a) the following Article is inserted:

Removed‘Article 451b

RemovedDisclosure of exposures to crypto-assets and related activities

Removed1. Institutions shall disclose the following information on crypto-assets and crypto- asset services as well as any activities related to crypto-assets:

Removed(a) the direct and indirect exposure amounts in relation to crypto-assets including the gross long and short components of net exposures;(b) the risk weighted exposure amounts for each crypto-asset, to be complemented by a break down by category and the related capital demand;

Removed(c) the total risk exposure amount for operational risk broken down by business lines as set out in Table 2 of Article 317;

Removed(d) the accounting classification for crypto-asset exposures;

Removed(e) a description of the business activities related to crypto-assets, and their impact on the risk profile of the institution; institutions shall provide more detailed information for material business activities, including the issuance of significant asset-referenced tokens within the meaning of Articles 43 and 44 of MiCA Regulation, significant e-money tokens within the meaning of Articles 56 and 57 of MiCA Regulation and the provision of services [under Art. 9(c)(d) of MiCA Regulation];

Removed(f) a specific description of their risk management policies related to crypto-asset exposures and services related to crypto-assets.

Removed2. Institutions shall not apply the exception laid down in Article 432 for the purposes of the disclosure requirements in paragraph 1.’

Removed(191) Article 455 is replaced as follows:

Removed‘Article 455 Use of internal models for market risk

Removed1. An institution using the internal models referred to in Article 325az for the calculation of own funds requirements for market risk shall disclose:

Removed(a) the institution’s objectives in undertaking trading activities and the processes implemented to identify, measure, monitor and control the institution’s market risks;

Removed(b) the policies referred to in Article 104(1) for determining which position is to be included in the trading book;

Removed(c) a general description of the structure of the trading desks covered by the internal models referred to in Article 325az, including for each desk a broad description of the desk's business strategy, the instruments permitted therein and the main risk types in relation to that desk;

Removed(d) a general overview of the trading book positions not covered by the internal models referred to in Article 325az, including a general description of the desk structure and of type of instruments included in the desks or in the desks categories in accordance with Article 104b;

Removed(e) the structure and organisation of the market risk management function and governance;

Removed(f) the scope, the main characteristics and the key modelling choices of the different internal models referred to in Article 325az used to calculate the risk exposure amounts for the main models used at the consolidated level, and a description to what extent those internal models represent all the models used at the consolidated level, including where applicable:

Removed(i) a broad description of the modelling approach used to calculate the expected shortfall referred to in Article 325ba(1), point (a), including the frequency of data update;

Removed(ii) a broad description of the methodology used to calculate the stress scenario risk measure referred to in Article 325ba(1), point (b), other than the specifications provided for in Article 325bk(3);

Removed(iii) a broad description of the modelling approach used to calculate the default risk charge referred to in Article 325ba(2), including the frequency of data update.

Removed2. Institutions shall disclose on an aggregate basis for all the trading desks covered by the internal models referred to in Article 325az the following components, where applicable:

Removed(a) the most recent value as well as the highest, lowest and mean value for the previous 60 business days of:

Removed(i) the unconstrained expected shortfall measure as defined in Article 325bb(1);

Removed(ii) the unconstrained expected shortfall measure as defined in Article 325bb(1) for each regulatory broad risk factor category;

Removed(b) the most recent value as well as the mean value for the previous 60 business days of:

Removed(i) the expected shortfall risk measure as defined in Article 325bb(1);

Removed(ii) the stress scenario risk measure as defined in Article 325ba(1), point (b);

Removed(iii) the own funds requirement for default risk as defined in Article 325ba(2);

Removed(iv) the sum of the own funds requirements as defined in Articles 325ba(1) and 325ba(2), including the applicable multiplier factor;

Removed(c) the number of backtesting overshootings over the last 250 business days at the 99th percentile as referred to in Article 325bf(1), points (a) and (b), separately.

Removed4. Institutions shall disclose on an aggregate basis for all trading desks the own funds requirements for market risks that would be calculated in accordance with this Title, Chapter 1a, had the institutions not been granted any permission to use their internal models for those trading desks.’;

Removed(192) Article 458 is amended as follows:

Removed(a) paragraph 6 is replaced by the following:

Removed‘6. Where Member States recognise the measures set in accordance with this Article, they shall notify the ESRB. The ESRB shall forward such notifications without delay to the Council, the Commission, the EBA ▌and the Member State authorised to apply the measures.’;

Removed(b) paragraph 9 is replaced by the following:

Removed‘9. Before the expiry of the authorisation issued in accordance with paragraphs 2 and 4, the Member State concerned shall, in consultation with the ESRB, ▌the EBA and the Commission, review the situation and may adopt, in accordance with the procedure referred to in paragraphs 2 and 4, a new decision for the extension of the period of application of national measures for up to two additional years each time.’;

Removed(193) Article 461a is replaced by the following:

Removed‘Article 461a Own funds requirement for market risks

Removed‘The Commission shall monitor the differences between the Union implementation of the international standards on own funds requirements for market risk ▌ and third countries’ implementation of those international standards ▌, including as regards the impact of the rules in terms of own funds requirements and as regards their entry into application.

RemovedWhere significant differences are observed, the Commission shall be empowered to adopt a delegated act in accordance with Article 462 to amend this Regulation by:

Removed(a) applying, until the entry into force of the legisaltive proposal referred to in the fourth paragraph or for up to three years in the absence of such a proposal, and where necessary to deliver a level playing field, multipliers equal to or greater than 0 and lower than 1 to the institutions’ own funds requirements for market risk, calculated for specific risk classes and specific risk factors using one of the approaches referred to in Article 325(1), and laid out in:

Removed(i) Articles 325c to 325ay, specifying the alternative standardised approach;

Removed(ii) Articles 325az to 325bp, specifying the alternative internal model approach;

Removed(iii) Articles 326 to 361, specifying the simplified standardised approach, to offset those observed differences between the third countries rules and Union law;

Removed(b) postponing by up to two years the date from which institutions shall apply the own funds requirements for market risk set out in Part Three, Title IV, or any of the approaches to calculate the own funds requirements for market risk referred to in Article 325(1).’;

RemovedBy 31 December 2025 the EBA shall submit a report to the European Parliament, to the Council and to the Commission, on the implementation of the international standards on own funds requirements for market risk in third countries.