Changes from report parliamentary committee draft to plenary report

Added(i) the first subparagraph is replaced by the following:

Added‘For the calculation of exposure values for the purposes of Article 395, institutions may, except where prohibited by applicable national law, reduce the value of an exposure or any part of an exposure that is secured by commercial immovable property in accordance with Article 126(1) by the pledged amount of the property value, but by not more than 55 % of the property value, provided that all the following conditions are met:’;

Added(ii) point (a) is replaced by the following:

Added‘(a) the competent authorities of the Member States have not set a risk weight higher than 60 % for exposures or parts of exposures secured by commercial immovable property in accordance with Article 124(7);’;

Added(172) in Article 429, paragraph 6 is replaced by the following:

Added‘6. For the purposes of paragraph 4, point (e), of this Article and Article 429g, ‘regular-way purchase or sale’ means a purchase or a sale of a financial asset under contracts for which the terms require delivery of the financial asset within the period established generally by law or convention in the marketplace concerned.’;

Added(172a) in Article 429a(1), the following point is added:

Added‘(ca) where the institution is a member of the network referred to in Article 113(7), the exposures that are assigned a risk weight of 0% in accordance with Article 114 and arising from assets being an equivalent of deposits in the same currency of other members of that network stemming from legal or statutory minimum deposit in accordance with Article 422(3), point (b). In such a case exposures of other members of that network being legal or statutory minimum deposit are not subject to point (c).’;

Added(173) Article 429c is amended as follows:

Added(a) in paragraph 3, point (a) is replaced by the following:

Added‘(a) for trades not cleared through a QCCP, the cash received by the recipient counterparty is not segregated from the assets of the institution;’;

Added(b) paragraph 4 is replaced by the following:

Added‘4. For the purposes of paragraph 1 of this Article, institutions shall not include collateral received in the calculation of NICA as defined in Article 272, point (12a).’;

Added(c) the following paragraph 4a is inserted:

Added‘4a. By way of derogation from paragraphs 3 and 4, an institution may recognise any collateral received in accordance with Part Three, Title II, Chapter 6, Section 3 where all of the following conditions are met:

Added(a) the collateral is received from a client for a derivative contract cleared by the institution on behalf of that client;

Added(b) the contract referred to in point (a) is cleared through a QCCP;

Added(c) where the collateral has been received in the form of initial margin, that collateral is segregated from the assets of the institution.’;

Added(d) in paragraph 6, the first subparagraph is replaced by the following:

Added‘By way of derogation from paragraph 1 of this Article, institutions may use the method set out in Part Three, Title II, Chapter 6, Section 4 or 5 to determine the exposure value of derivative contracts listed in Annex II and credit derivatives, but only where they also use that method for determining the exposure value of those contracts for the purposes of meeting the own funds requirements set out in Article 92(1), points (a), (b) and (c).’;

Added(174) Article 429f is amended as follows:

Added(a) paragraph 1 is replaced by the following:

Added‘1. Institutions shall calculate, in accordance with Article 111(2), the exposure value of off-balance-sheet items, excluding the derivative contracts listed in Annex II, credit derivatives, securities financing transactions and the positions referred to in Article 429d.

AddedWhere a commitment refers to the extension of another commitment, Article 166(9) shall apply.’;

Added(b) paragraph 3 is deleted;

Added(175) in Article 429g, paragraph 1 is replaced by the following:

Added‘1. Institutions shall treat cash related to regular-way purchases and financial assets related to regular-way sales which remain on the balance sheet until the settlement date as assets in accordance with Article 429(4), point (a).’;

Added(176) ▌Article 430 is amended as follows:

Added(a) in paragraph 1, the following point (h) is added:

Added‘(h) their exposures to ESG risks, including:

Added(i) their existing and new exposures to the fossil fuel sector entities;

Added(ii) their exposures to activities that are deemed to do significant harm to one of the environmental objectives laid down in Regulation (EU) 2020/852;

Added(iii) their exposure to physical risks and transition risks;

Added(iv) the relevant exposures of the pools of loans underlying covered bonds issued by institutions, whether directly or through the transfer of loans to a special purpose vehicle (SPV);’;

Added(b) the following paragraph is inserted:

Added'8a. By 1 January 2024 and every year thereafter, EBA shall publish a progress report on the implementation of the mandate given in paragraph 8 of this Article. EBA shall specifically detail the progress made in relation to the objective specified in point (e) of paragraph 8. ';

Added(177) ▌Article 430a is amended as follows:

Added(a) paragraph 1 is replaced by the following;

Added‘1. Institutions shall report to their competent authorities on an annual basis the following aggregate data for each national immovable property market to which they are exposed:

Added(a) losses stemming from exposures for which an institution has recognised residential property as collateral, up to the lower of the pledged amount and 55 % of the property value, unless otherwise decided under Article 124(7);

Added(b) overall losses stemming from exposures for which an institution has recognised residential property as collateral, up to the part of the exposure that is secured by residential property in accordance with Article 124(2), point (a);

Added(c) the exposure value of all outstanding exposures for which an institution has recognised residential property as collateral limited to the part that is secured by residential property in accordance with Article 124(2), point (a);

Added(d) losses stemming from exposures for which an institution has recognised immovable commercial property as collateral, up to the lower of the pledged amount and 55 % of the property value, unless otherwise decided under Article 124(7);

Added(e) overall losses stemming from exposures for which an institution has recognised immovable commercial property as collateral, up to the part of the exposure that is secured by immovable commercial property in accordance with Article 124(2), point (c);

Added(f) the exposure value of all outstanding exposures for which an institution has recognised immovable commercial property as collateral limited to the part that is secured by immovable commercial property in accordance with Article 124(2), point (c).’;

Added(b) paragraph 3 is replaced by the following:

Added‘3. The competent authorities shall publish annually on an aggregated basis the data specified in points (a) to (f) of paragraph 1, together with historical data, where available, for each national immovable property market for which such data has been collected. A competent authority shall, upon the request of another competent authority in a Member State or EBA provide to that competent authority or EBA more detailed information on the condition of the residential property or commercial immovable property markets in that Member State.’;

Added(178) Article 433 is replaced by the following:

Added‘Article 433 Frequency and scope of disclosures

AddedInstitutions shall disclose the information required under Titles II and III in the manner set out in this Article, Articles 433a, 433b, 433c and 434.

AddedEBA shall publish annual disclosures on its website on the same date as the date on which institutions publish their financial statements or as soon as possible thereafter.

AddedEBA shall publish semi-annual and quarterly disclosures on its website on the same date as the date on which the institutions publish their financial reports for the corresponding period where applicable or as soon as possible thereafter.

AddedAny delay between the date of publication of the disclosures required under this Part and the relevant financial statements shall be reasonable and, in any event, shall not exceed the timeframe set by competent authorities pursuant to Article 106 of Directive 2013/36/EU.’;

Added(179) in Article 433a, paragraph 1 is amended as follows:

Added(a) in point (b), the following point is added:

Added‘(xv) Article 449a. ’;

Added(b) in point (c), point (i) is replaced by the following:

Added‘(i) points (d), (da) and (h) of Article 438;’;

Added(180) ▌Article 433b is replaced by the following:

Added‘Article 433b