Changes from plenary report to adopted text

Removed(20) in Article 85(1), point (a) is replaced by the following:

Removed‘(a) the Tier 1 capital of the subsidiary minus the lower of the following:

Removed(i) the amount of Tier 1 capital of the subsidiary required to meet the following:

Removed– where the subsidiary is an undertaking referred to in Article 81(1), points (a)(i) to (a)(iii) and point (a)(v) of this Regulation, the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 Capital, as applicable;

Removed– where the subsidiary is an investment firm or an intermediate investment holding company, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by Tier 1 capital, as applicable;

Removed(ii) the amount of consolidated Tier 1 capital that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (b), the requirements referred to in Articles 458 and 459, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive;

RemovedBy way of derogation from this point (a), the competent authority may allow institutions to subtract either of the amounts referred to in point (i) or (ii) of this point;’;

Removed(20a) Article 87(1), point (a) is replaced by the following:

Removed‘(a) the own funds of the subsidiary minus the lower of the following:

Removed(i) the amount of own funds of the subsidiary required to meet the following:

Removed– where the subsidiary is an undertaking referred to in Article 81(1), points (a)(i) to (a)(iii) and point (a)(v) of this Regulation, the sum of the requirement laid down in Article 92(1), point (c) of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU, the combined buffer requirement defined in Article 128, point (6) of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by own funds, as applicable;

Removed– where the subsidiary is an investment firm or an intermediate investment company, the sum of the requirement laid down in Article 11 of Regulation (EU) 2019/2033, the specific own funds requirements referred to in Article 39(2), point (a), of Directive (EU) 2019/2034, or any local supervisory regulations in third countries insofar as those requirements are to be met by own funds, as applicable;

Removed(ii) the amount of own funds that relates to the subsidiary that is required on a consolidated basis to meet the sum of the requirement laid down in Article 92(1), point (c), of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in point (6) of Article 128 of that Directive;

RemovedBy way of derogation from this point (a), the competent authority may allow institutions to subtract either of the amounts referred to in point (i) or (ii) of this point.’;

Removed(21) the following Article 88b is inserted:

Removed‘Article 88b Undertakings in third countries

RemovedFor the purposes of this Title II, the terms ‘investment firm’ and ‘institution’ shall be understood to include also undertakings established in third countries, which, were they established in the Union, would fall under the definitions of those terms in Article 4(1), points (2) and (3).’;

Removed(22) in Article 89, paragraph 1 is replaced by the following:

Removed‘1. A qualifying holding, the amount of which exceeds 15 % of the eligible capital of the institution, in an undertaking which is not a financial sector entity, shall be subject to the provisions laid down in paragraph 3.’;

Removed(23) Article 92 is amended as follows:

Removed(a) paragraph 3 and 4 are replaced by the following:

Removed‘3. The total risk exposure amount shall be calculated as follows:

Removed(a) For the purposes of complying with the obligations of this Regulation, institutions shall calculate the total risk exposure amount as follows:

Removedwhere:

RemovedTREA = the total risk exposure amount of the entity;

RemovedU-TREA = the un-floored total risk exposure amount of the entity calculated in accordance with paragraph 4;

RemovedS-TREA = the standardised total risk exposure amount of the entity calculated in accordance with paragraph 5;

Removedx = 72,5 %;

RemovedInstitutions shall comply with this Article in accordance with the level of application laid down in Article 92-a.

Removed4. The un-floored total risk exposure amount shall be calculated as the sum of points (a) to (f) of this paragraph after having taken into account paragraph 7:

Removed(a) the risk-weighted exposure amounts for credit risk, including counterparty risk, and dilution risk, calculated in accordance with Title II and Article 379, in respect of all the business activities of an institution, excluding risk-weighted exposure amounts for counterparty risk from the trading book business of the institution;

Removed(b) the own funds requirements for the trading-book business of an institution for the following:

Removed(i) market risk, calculated in accordance with Title IV of this Part;

Removed(ii) large exposures exceeding the limits specified in Articles 395 to 401, to the extent that an institution is permitted to exceed those limits, as determined in accordance with Part Four;

Removed(c) the own funds requirements for market risk, calculated in accordance with Title IV of this Part for all business activities that are subject to foreign exchange risk or commodity risk;

Removed(ca) the own funds requirements for settlement risk, calculated in accordance with Title V of this Part, with the exception of Article 379;

Removed(d) the own funds requirements for credit valuation adjustment risk, calculated in accordance with Title VI of this Part;

Removed(e) the own funds requirements for operational risk, calculated in accordance with Title III of this Part;

Removed(f) the risk-weighted exposure amounts for counterparty risk arising from the trading book business of the institution for the following types of transactions and agreements, calculated in accordance with Title II of this Part:

Removed(i) contracts listed in Annex II and credit derivatives;

Removed(ii) repurchase transactions, securities or commodities lending or borrowing transactions based on securities or commodities;

Removed(iii) margin lending transactions based on securities or commodities;

Removed(iv) long settlement transactions.’;

Removed(b) the following paragraphs 5 ▌and 7 are added:

Removed‘5. The standardised total risk exposure amount shall be calculated as the sum of paragraph 4, points (a) to (f), after having taken into account paragraph 7 and the following requirements:

Removed(a) the 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 without using any of the following approaches:

Removed(i) the internal models approach for master netting agreements set out in Article 221;

Removed(ii) the Internal Ratings Based Approach provided for in Chapter 3;

Removed(iii) the Securitisation Internal Ratings-Based Approach (SEC-IRBA) set out in Articles 258 to 260 and the Internal Assessment Approach (IAA) set out in Article 265;

Removed(iv) the approach set out in this Part, Title II, Chapter 6, Section 6;

Removed(b) the own funds requirements for market risk for the trading book business referred to in paragraph 3, point (b)(i), and for all its business activities that are subject to foreign exchange risk or commodity risk referred to in point (c) of that paragraph shall be calculated without using the alternative internal model approach set out in Part Three, Title IV, Chapter 1b.

Removed▌

Removed7. The following provisions shall apply to the calculations of the total un-floored risk exposure amount referred to in paragraph 4 and of the standardised risk exposure amount referred to in paragraph 5:

Removed(a) the own funds requirements referred to in paragraph 4, points (c), (ca), (d) and (e), shall include those arising from all the business activities of an institution;

Removed(b) institutions shall multiply the own funds requirements set out in paragraph 4, points (b) to (e), by 12,5.’;

Removed(23a) the following Article is inserted:

Removed‘Article 92-a

RemovedLevel of application of the output floor

Removed1. Institutions shall calculate the total risk-weighted exposure amount referred to in Article 92(3) on a consolidated basis in accordance with Part One, Title II, Chapter 2 of this Regulation.

Removed2. Without prejudice to paragraph 1, where the competent authority responsible for the supervision of a subsidiary credit institution of an EU parent institution or an EU parent financial holding company or EU parent mixed financial holding company in a Member State deems that the application of Article 92(3) of this Regulation would lead to an inappropriate distribution of capital among the group entities, that competent authority may submit a capital redistribution proposal to the consolidating supervisor.