Changes from plenary report to adopted text

RemovedOn the basis of that report, the Commission shall, if appropriate, submit to the European Parliament and the Council a legislative proposal, in order to ensure a global level playing field.

Removed(194) the following Article 461b is inserted:

Removed‘Article 461b Prudential treatment of crypto assets

Removed1. The Commission shall, where appropriate, submit a legislative proposal to the European Parliament and the Council, by 30 June 2023, to implement a dedicated prudential treatment for exposures to crypto-assets, taking due account of the recently published international standards, and the requirements set up by the [insert reference to MiCA Regulation]. That legislative proposal shall include, but not be limited to, the following:

Removed(a) criteria for assigning crypto-assets to different crypto-asset categories based on their risk characteristics and compliance with specific conditions;

Removed(b) specific own funds requirements for all the risks entailed by each crypto-asset category;

Removed(c) specific supervisory powers as regards crypto-asset exposure assignment, monitoring and calculation of own funds requirements;

Removed(d) specific liquidity requirements for exposures to crypto-assets;

Removed(e) disclosure requirements.

Removed2. Until 30 December 2024, institutions shall apply a 1250% risk weight to their exposures to crypto-assets in the calculation of their own funds requirements. Institutions shall not apply the deduction in Article 36(1), point (b), for the calculation of their own funds requirements.’

Removed(195) Article 462 is amended as follows:

Removed(a) paragraphs 2 and 3 are replaced by the following:

Removed‘2. The power to adopt delegated acts referred to in Articles 47a, 244(6) and 245(6), in Articles 456 to 460, in Articles 461a and 461b and in Article 500 shall be conferred on the Commission for an indeterminate period of time from 28 June 2013.

Removed3. The delegation of power referred to in Articles 47a, 244(6) and 245(6), in Articles 456 to 460, in Article 461a and 461b and in Article 500 may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.’;

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

Removed‘6. A delegated act adopted pursuant to Articles 47a, 244(6) and 245(6), Articles 456 to 460, Articles 461a and 461b and in Article 500 shall enter into force only if no objection has been expressed by the European Parliament or the Council within a period of three months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by three months at the initiative of the European Parliament or of the Council.’;

Removed(196) Article 465 is replaced by the following:

Removed‘Article 465 Transitional arrangements for the output floor

Removed1. By way of derogation from Article 92(3), parent institutions, parent financial holding companies, parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States may apply the following factor ‘x’ where calculating TREA:

Removed(a) 50 % during the period from 1 January 2025 to 31 December 2025;

Removed(b) 55 % during the period from 1 January 2026 to 31 December 2026;

Removed(c) 60 % during the period from 1 January 2027 to 31 December 2027;

Removed(d) 65 % during the period from 1 January 2028 to 31 December 2028;

Removed(e) 70 % during the period from 1 January 2029 to 31 December 2029;

Removed2. By way of derogation from Article 92(3), point (a), EU parent institutions, EU parent financial holding companies or an EU parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States may, until 31 December 2029, apply the following formula when calculating TREA:

RemovedFor the purposes of that calculation, EU parent institutions, EU parent financial holding companies or an EU parent mixed financial holding companies shall take into account the relevant factors ‘x’ referred to in paragraph 1.

Removed3. By way of derogation from Article 92(5)(a), point (i), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States may:

Removed– until 31 December 2030, assign a risk weight of 65 % to exposures to corporates and for which no credit assessment by a nominated ECAI is available provided that that entity estimates the PD of those exposures, calculated in accordance with Part Three, Title II, Chapter 3, is no higher than 0,5 %;

Removed- during the period from 1 January 2031 to 31 December 2032 assign a risk weight of 70 % to exposures to corporates for which no credit assessment by a nominated ECAI is available provided that that entity estimates the PD of those exposures, calculated in accordance with Part Three, Title II, Chapter 3, is no higher than 0,5 %.

RemovedEBA, EIOPA and ESMA, shall monitor the use of the transitional treatment laid down in the first subparagraph and assess, in particular:

Removed(i) the availability of credit assessments by nominated ECAIs for exposures to corporates.;

Removed(ii) the development of credit rating agencies, barriers of entry to the market of new European credit rating agencies, rate of uptake of European corporates choosing to be rated by one or multiple of these agencies;

Removed(iii) the development of private or publicly led solutions such as credit scoring and central bank ratings to provide credit assessments;

Removed(iv) the appropriateness of the risk weighting of exposures and implications in terms of financial stability;

Removed(v) the approaches of other jurisdictions concerning the application of the output floor to unrated corporate exposures and long-term level playing field considerations that could arise as a result;

Removed(vi) compliance with international standards and potential implications on the compliance assessment scale of the Basel Committee of Banking Supervision.

RemovedEBA, EIOPA and ESMA shall report its findings to the Commission by 31 December 2028.

RemovedOn the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2031 to extend the application of the treatment referred to in paragraph 3, subparagraph 3 by 4 years at the most.

Removed4. By way of derogation from Article 92(5)(a), point (iv), parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States shall, until 31 December 2029, replace alpha by 1 in the calculation of the exposure value for the contracts listed in Annex II in accordance with the approaches set out in Part Three, Title II, Chapter 6, Sections 3 and 4, where the same exposure values are calculated in accordance with the approach set out in Part Three, Title II, Chapter 3, Section 6 for the purposes of the total un-floored risk exposure amount.

RemovedThe Commission may, while taking into account the EBA report referred to in Article 514, adopt a legislative proposal in accordance with Article 462 to ▌modify the value of alpha, where appropriate.

Removed5. By way of derogation from Article 92(5)(a), point (i), Member States may, allow parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the EU or stand-alone subsidiary institutions in Member States to assign the following risk weights provided that all the conditions in the second subparagraph are met:

Removed(a) until 31 December 2032, a risk weight of 10 % to the part of the exposures secured by mortgages on residential property up to 55 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted,

Removed(b) until 31 December 2029, a risk weight of 45% to any remaining part of the exposures secured by mortgages on residential property up to 80 % of the property value remaining after any senior or pari passu ranking liens not held by the institution have been deducted, provided that the adjustment to own funds requirements for credit risk referred to in Article 501 is not applied.

RemovedFor the purposes of assigning the risk weights in accordance with the first subparagraph, all of the following conditions shall be met:

Removed(a) the qualifying exposures are located in the Member State that has exercised the discretion;

Removed(b) over the last eight years the institution’s losses on the part of such exposures up to 55 % of the property value do not exceed on average 0,25 % of the total amount, across all such exposures, of credit obligations outstanding in a given year;

Removed(c) for the qualifying exposures the institution has both the following claims in the event of the default or non-payment of the obligor:

Removed(i) a claim on the residential immovable property securing the exposure;

Removed(ii) a claim on the other assets and income of the obligor;

Removed(d) the competent authority has verified that the conditions in points (a), (b) and (c) are met.

RemovedWhere the discretion referred to in the first subparagraph has been exercised and all the associated conditions in the second subparagraph are met, institutions may assign the following risk weights to the remaining part of the exposures referred to in the second subparagraph, point (b), until 31 December 2032:

Removed(a) 52,5 % during the period from 1 January 2030 to 31 December 2030;

Removed(b) 60 % during the period from 1 January 2031 to 31 December 2031;

Removed(c) 67,5 % during the period from 1 January 2032 to 31 December 2032.

RemovedWhen Member States exercise that discretion, they shall notify EBA and substantiate their decision. Competent authorities shall notify the details of all the verifications referred to in the first subparagraph, point (c), to EBA.

RemovedEBA shall monitor the use of the transitional treatment in the first subparagraph and report to the Commission by 31 December 2028 on the appropriateness of the associated risk weights.

RemovedOn the basis of that report and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2030, to extend the application of the treatment referred to in paragraph 5, by four years at the most;

Removed5 a. By way of derogation from Article 92(5), when the standardised risk-weighted exposure amounts for credit risk and dilution risk referred to in paragraph 4, point (a), and for counterparty risk arising from the trading book business as referred to in point (f) of that paragraph shall be calculated using the SEC-SA following Article 261 or Article 262, parent institutions, parent financial holding companies or parent mixed financial holding companies, stand-alone institutions in the Union shall be permitted, until the completion of the comprehensive review of the Union securitisation framework as part of the Capital Markets Union Action Plan, to apply the following modifications:

Removed(a) p = 0,25 for a position in an STS securitisation;

Removed(b) p = 0,5 for a position in a non-STS securitisation.’;