Changes from plenary report to adopted text

RemovedEBA, in close cooperation with ESMA, shall, by [OP please insert the date = 12 months after entry into force of this Regulation], report to the Commission on the appropriateness of implementing in Union law the minimum haircut floors framework applicable to SFTs to address the potential build-up of leverage outside the banking sector.

RemovedThe report referred to in the first sub-paragraph shall consider all of the following:

Removed(a) the degree of leverage outside the banking system in the Union and to which extent the minimum haircut floors framework could reduce that leverage if that leverage would become excessive;

Removed(b) the materiality of the SFTs held by EU institutions and subject to the minimum haircut floors framework, including the breakdown of those SFTs which do not comply with the minimum haircut floors;

Removed(c) the estimated impact of the minimum haircut floors framework for EU institutions under the two implementation approaches recommended by the FSB that is a market regulation or a more punitive own funds requirement under this Regulation, under a scenario under which EU institutions would not adjust the haircuts of their SFTs to comply with the minimum haircut floors and an alternative scenario under which they would adjust those haircuts to comply with the minimum haircut floors;

Removed(d) the main drivers behind those estimated impacts, as well as potential unintended consequences of introducing the minimum haircut floors framework on the functioning of the EU SFT markets;

Removed(e) the implementation approach that would be the most effective to meet the regulatory objectives of the minimum haircut floor framework, in light of the considerations laid down in points (a) to (d) and taking into account the level playing field across the financial sector in the Union.

RemovedOn the basis of that report and taking due account of the FSB recommendation to implement the minimum haircut floors framework applicable to SFTs, as well as 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 [OP please insert the date = 24 months after entry into force of this Regulation].

RemovedBy [OP please insert the date = 24 months after date of application of Part Three, Title III], the EBA shall report to the Commission on all of the following:

Removed(a) the use of insurance in the context of the calculation of the own funds requirements for operational risk;

Removed(b) whether the recognition of insurance recoveries may allow for regulatory arbitrage by reducing the annual operational risk loss without a commensurate reduction in the actual operational loss exposure;

Removed(c) whether the recognition of insurance recoveries has a different impact on the appropriate coverage of recurring losses and of potential tail losses, respectively.

Removed(ca) the availability and quality of data used by institutions when calculating their own funds requirements for operational risk.

RemovedOn the basis of that report, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by [OP please insert the date = 36 months after date of application of Part Three, Title III].’;

Removed(205a) the following Article is inserted:

Removed‘Article 519da

RemovedProportionality

RemovedEBA shall prepare a report assessing options to introduce in the prudential framework specific prudential, governance and transparency requirements for small and non-complex institutions with a view to increase the proportionality of the prudential framework, including:

Removed(a) the relevance of small and non-complex institutions at institution level and by region for maintaining financial stability;

Removed(b) if appropriate, recommendations as to how the prudential framework can better reflect the differing degrees of financial stability relevance of categories of small and non-complex institutions.

RemovedEBA shall report its findings to the Commission by 31 December 2027.’; (206) Annex I is replaced by the Annex to this Regulation.

RemovedEntry into force and date of application

Removed1. This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

Removed2. This Regulation shall apply from 1 January 2025, with the following exceptions:

Removed(a) the provisions in points (1)(a), (b) and(c), (e) to (h), (j), (u), (v) and (x) concerning certain definitions, the provisions in point (6) concerning the scope of prudential consolidation as well as the provisions in points (8), (10) to (12), and (14) to (23) concerning own funds and eligible liabilities, which shall apply from [OP please insert date = 6 months after date of entry into force of this Regulation];

Removed(b) the provisions in points (1)(d) and (4) concerning amendments in accordance with Regulation (EU) 2019/2033, and the provisions in point (47) concerning to the treatment of exposures in default, which shall apply from the date of entry into force of this Regulation;

Removed(c) the provisions in points (9), (26)(a), (27), (28)(a), (29), (34), (41), (42), (44), (47), (54), (59)(c) (60)(c), (61)(g) and (h), (64)(c), 66(d), (69), (81), (85)(b), (90)(c), (91)(c), (92)(c), (131), (132)(b), (136)(d), (153), (154)(d), (155)(c), (156)(b), (166)(c), (169), (178), (182), (183), (189), (192), (194), (196), (199), (201) to (205) that require European Supervisory Authorities or the ESRB to submit to the Commission draft regulatory or implementing technical standards and reports, the provisions that require the Commission to produce reports, the provisions that empower the Commission to adopt delegated acts or implementing acts, the provisions on review and the provisions that require the European Supervisory Authorities to issue guidelines, which shall apply from the date of entry into force of this Regulation.

Removed3. In Article 3 of Regulation (EU) 2019/876, paragraph 6 is replaced by the following:

Removed6. Point (53), as regards Article 104a of Regulation (EU) No 575/2013, and points (55) and (69) of Article 1 of this Regulation, containing the provisions on the introduction of the new own funds requirements for market risk, shall apply from 1 January 2025.

RemovedThis Regulation shall be binding in its entirety and directly applicable in the Member States in accordance with the Treaties.

RemovedDone at Brussels,

RemovedFor the European Parliament For the Council

RemovedThe President The President

RemovedClassification of Off-Balance Sheet Items