Changes from report parliamentary committee draft to plenary report

RemovedRegulation (EU) No 575/2013

Added‘Article 8

RemovedArticle 1 – paragraph 1 – point 61 – point e – point iii, Article 147 – paragraph 5a – subparagraph 1 – point e: (e) the treatment of exposures assigned to that type of exposures as qualifying revolving retail exposures is consistent with the underlying risk characteristics of that type of exposures.

AddedDerogation from the application of liquidity requirements on an individual basis

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Added1. The competent authorities may waive in full or in part the application of Part Six to an institution and to all or some of its subsidiaries in the Union and supervise them as a single liquidity sub-group so long as they fulfil all of the following conditions:

RemovedArticle 1 – paragraph 1 – point 61 – point g, Article 147 – paragraph 8 – point b: (b) the determination of the IPRE category, in particular providing which ADC exposures and exposures secured by immovable property, may or shall be categorised as IPRE, where those exposures do not materially depend on cash flows generated by the property for their repayment.

Added(a) the parent institution on a consolidated basis or a subsidiary institution on a sub-consolidated basis complies with the obligations laid down in Part Six;

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Added(b) the parent institution on a consolidated basis or the subsidiary institution on a sub-consolidated basis monitors and has oversight at all times over the liquidity positions of all institutions within the group or sub-group, that are subject to the waiver, monitors and has oversight at all times over the funding positions of all institutions within the group or sub-group where the net stable funding ratio (NSFR) requirement set out in Title IV of Part Six is waived, and ensures a sufficient level of liquidity, and of stable funding where the NSFR requirement set out in Title IV of Part Six is waived, for all of those institutions;

RemovedArticle 1 – paragraph 1 – point 61 – point h, Article 147 – paragraph 11 – subparagraph 1: 11. EBA shall develop draft regulatory technical standards specifying further the exposure classes referred to in paragraph 2 where necessary.

Added(c) all entities belonging to the single liquidity sub-group have entered into a group financial support agreement as defined in Directive 2014/59/EU, or another group financial support agreement that the competent authorities deem satisfactory, which requires the parent undertaking to provide liquidity support and does not provide for any upper limit to the level of support that can be provided and that would not be revocable at short notice;

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Added(d) the institutions have entered into contracts that, to the satisfaction of the competent authorities, provide for the free movement of funds between them to enable them to meet their individual and joint obligations as they become due;

RemovedArticle 1 – paragraph 1 – point 62 – point a, Article 148 – paragraph 1 – subparagraph 1: 1. An institution that is permitted to apply the IRB Approach in accordance with Article 107(1), shall, together with any parent undertaking and its subsidiaries, implement the IRB Approach for at least one of the exposure classes referred to in points (a), (a1)(i), (a1)(ii), (b), (c)(i), (c)(ii), (c)(iii), (d)(i), (d)(ii), d(iii), (d)(iv), (e1), and (g) of Article 147(2). Once an institution has implemented the IRB Approach for a certain exposure class, it shall do so for all the exposures within that exposure class, unless it has received the permission of the competent authorities to use the Standardised Approach permanently in accordance with Article 150.

Added(e) the institution leading the liquidity sub-group provides an independent legal opinion to the competent authorities on the enforceability of this group financial support agreement that confirms the absence of any legal impediments to the transfer of liquidity across the entities belonging to the single liquidity sub-group;

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Added(f) the single liquidity sub-group is covered by a single group recovery plan that includes recovery plan indicators for each entity of the liquidity sub-group including the parent undertaking that are consistent with the liquidity sub-group’s internal liquidity management policy;

RemovedArticle 1 – paragraph 1 – point 62 – point a, Article 148 – paragraph 1 – subparagraph 2: Subject to the prior permission of the competent authorities, implementation of the IRB Approach within a certain exposure class may be carried out sequentially across the different types of exposures within the same business unit, across different business units in the same group, or for the use of own estimates of LGDs or the use of IRB-CCFs.

Added(g) the single liquidity sub-group belongs to a banking group which is subject to a group resolution scheme in accordance with Article 92 of Directive 2014/59/EU.

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AddedThe group financial support agreement may also be used to satisfy the condition under point (d) of this paragraph.

RemovedArticle 1 – paragraph 1 – point 62 – point a, Article 148 – paragraph 2: 2. Competent authorities shall determine the time period over which an institution and any parent undertaking and its subsidiaries shall be required to implement the IRB Approach for all exposures within a certain exposure class across different types of exposures within the same business unit, across different business units in the same group or for the use of own estimates of LGDs or the use of IRB-CCF, as applicable. That time period shall be one that competent authorities consider to be appropriate on the basis of the nature and scale of the activities of the institution concerned, or any parent undertaking and its subsidiaries, and the number and nature of rating systems to be implemented.;

Added3. Where institutions of the single liquidity sub-group are authorised in several Member States, paragraph 1 shall only be applied after following the procedure laid down in Article 21 and the competent authorities may waive in full or in part the application of the requirements set out in Part 6.

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Added4. Competent authorities may also apply paragraphs 1 and 3 to institutions which are members of the same institutional protection scheme as referred to in Article 113(7) provided that they meet all the conditions laid down therein, and to other institutions linked by a relationship referred to in Article 113(6) provided that they meet all the conditions laid down therein. Competent authorities shall in that case determine one of the institutions subject to the waiver to meet Part Six on the basis of the consolidated situation of all institutions of the single liquidity sub-group.

RemovedArticle 1 – paragraph 1 – point 62 – point a a (new), Article 148 – paragraph 3: (a a) paragraph 3 is replaced by the following: / "3. Institutions shall carry out implementation of the IRB Approach in accordance with conditions determined by the competent authorities. The competent authority shall design those conditions such that they ensure that the flexibility under paragraph 1 is not used selectively for the purposes of achieving reduced own funds requirements in respect of those types of exposures or business units that are yet to be included in the IRB Approach or in the use of own estimates of LGDs or the use of IRB-CCF.”

Added5. Where a waiver has been granted under paragraph 1 or paragraph 3, the competent authorities may also apply Article 86 of Directive 2013/36/EU, or parts thereof, at the level of the single liquidity sub-group and waive the application of Article 86 of Directive 2013/36/EU, or parts thereof, on an individual basis.

Removed(https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32013R0575&from=EN)

Added6. Where, in accordance with this Article, a competent authority waives, in part or in full, the application of Part Six for an institution, it may also waive the application of the associated liquidity reporting requirements under point (d) of Article 430(1) for that institution.

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Added6a. Waivers granted under this Article prior to [the date of application of CRR3 (e.g. 1.1.2025)] shall remain in force for [[24 months] after the date of application of CRR3], provided that the conditions specified in the version of this Article applicable prior to [the date of application of CRR3 (e.g. 1.1.2025)] continue to be met. After [date [24 months] after the date of application of CRR3], such waivers shall continue to remain in force, provided that the applicable conditions specified in Article 8 (1) or (2) are met.

RemovedArticle 1 – paragraph 1 – point 63 – point a, Article 150 – paragraph 1 – subparagraph 1 – point b: deleted

Added6b. By 31 December 2025, the Commission shall report to the European Parliament and the Council on the legal form and specific prudential treatment for group financial support agreements. The report shall be accompanied, where appropriate, by a legislative proposal.

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AddedBy 31 December 2026, the Commission shall review and report on the functioning of paragraph 1 of this Article and shall submit that report to the European Parliament and the Council. The Commission’s review and report shall assess, in particular, whether the elements and conditions specified in this Article provide sufficient flexibility to competent authorities to define institution-specific requirements as necessary for waiving the application of liquidity requirements, where justified by the efficiency of group risk management and the effectiveness of the group financial support arrangement in resolution. The Commission’s review and report shall also take into account any financial stability concerns and progress made towards completing the banking union, and more particularly to improvements made to the banking crisis management framework and the Union deposit guarantee framework which can further strengthen the consistency in liquidity management during going concern and crisis times. The report shall be accompanied, where appropriate, by a legislative proposal.

RemovedArticle 1 – paragraph 1 – point 63 – point a, Article 150 – paragraph 1 – subparagraph 1 – point c: (c) exposures assigned to exposure classes or belonging to types of exposures within an exposure class for which institutions have not received the prior permission of the competent authorities to use the IRB Approach for the calculation of the risk-weighted exposure amounts and expected loss amounts.

Added(4) in Article 10a, the single paragraph is amended as follows:

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Added‘For the purposes of the application of this Chapter, investment firms and investment holding companies shall be considered to be parent financial holding companies in a Member State or Union parent financial holding companies where such investment firms or investment holding companies are parent undertakings of an institution or of an investment firm subject to this Regulation that is referred to in Article 1(2) or (5) of Regulation (EU) 2019/2033.’;

RemovedArticle 1 – paragraph 1 – point 63 – point a, Article 150 – paragraph 1 – subparagraph 2: An institution that is permitted to use the IRB Approach for the calculation of risk-weighted exposure amounts and expected loss amounts for a given exposure class may, subject to the competent authority’s prior permission, after the implementation of the IRB Approach for given exposure classes, apply the Standardised Approach for some types of exposures within those exposure classes where those types of exposures are immaterial in terms of size and perceived risk profile.

Added(5) in Article 11(1), the first sentence is replaced by the following:

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Added‘Parent institutions in a Member State shall comply, to the extent and in the manner set out in Article 18, with the obligations laid down in Parts Two, Three, Four, Seven and Seven A on the basis of their consolidated situation, with the exception of Article 92(3), point (a), and Article 430(1), point (d).’;

RemovedArticle 1 – paragraph 1 – point 63 – point a, Article 150 – paragraph 1 – subparagraph 3: deleted

Added(5a) in Article 13(1), subparagraph 2 is replaced by the following:"

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Added‘Large subsidiaries of EU parent institutions shall disclose the information specified in Articles 437, 438, 440, 442, 449a, 450, 451, 451a and 453 on an individual basis or, where applicable, in accordance with this Regulation and Directive 2013/36/EU on a sub-consolidated basis.’;

RemovedArticle 1 – paragraph 1 – point 64 – point b, Article 151 – paragraph 8 – subparagraph 1 – point c: (c) exposures to large corporates not assigned to the exposure class referred to in Article 147(2), point (c)(ii).

Added(6) Article 18 is amended as follows:

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Added(a) paragraph 2 is deleted;

RemovedArticle 1 – paragraph 1 – point 64 – point b, Article 151 – paragraph 8 – subparagraph 2: For exposures belonging to the exposure classes referred to in Article 147(2), points (a) and (a1), and exposures belonging to the corporate exposure class , except for the exposures referred to in the first subparagraph of this paragraph, institutions shall apply the LGD values set out in Article 161(1), and the SA-CCF in accordance with Article 166, paragraphs 8, 8a and 8b, unless they have been permitted to use their own estimates of LGDs and CCFs for those exposures in accordance with paragraph 9 of this Article.

Added(b) in paragraph 7, first sub-paragraph, the first sentence is replaced by the following:

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Added‘Where an institution has a subsidiary which is an undertaking other than an institution or a financial institution or holds a participation in such an undertaking, it shall apply to that subsidiary or participation the equity method.’;

RemovedArticle 1 – paragraph 1 – point 64 – point c, Article 151 – paragraph 13 – subparagraph 1: 13. EBA shall develop draft regulatory technical standards to further specify the treatment set out in this Chapter that is applicable to exposures in the form of purchased receivables referred to in Article 153 and Article 154 for the purposes of calculating risk-weighted exposure amounts for the default risk and for the dilution risk of those exposures, including for the recognition of credit risk mitigation techniques.

Added(c) a new paragraph 10 is inserted:

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Added‘10. EBA shall report to the Commission by [OP please insert date = 1 year after the entry into force of this Regulation] on the completeness and appropriateness of the set of definitions and provisions of this Regulation concerning the supervision of all types of risks to which institutions are exposed at a consolidated level. EBA shall assess in particular any possible remaining discrepancies in those definitions and provisions alongside their interaction with the applicable accounting framework, and any remaining aspect that might pose unintended constraints to a consolidated supervision that is comprehensive and adaptable to new sources or types of risks or structures that might lead to regulatory arbitrage. EBA shall periodically update its report on a bi-annual basis.