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L 302/106

EN

Official Journal of the European Union

17.11.2009

Article 89(2), Article 89(1) may be applied subject to the approval of the competent authorities.’;

(b) in paragraph 12, the second subparagraph is replaced by the following:

‘Alternatively to the method described in the first sub­ paragraph, credit institutions may calculate themselves or may rely on a third party to calculate and report the average risk weighted exposure amounts based on the CIU’s underlying exposures in accordance with the approaches referred to in points (a) and (b) of para­ graph 11, provided that the correctness of the calcula­ tion and the report is adequately ensured.’;

settlement and custody services to clients, delayed receipts in funding and other exposures arising from client activity which do not last longer than the following business day; or

(d) in the case of the provision of money transmission including the execution of payment services, clear­ ing and settlement in any currency and correspon­ dent banking, intra-day exposures to institutions providing those services.

The Committee of European Banking Supervisors shall provide for guidelines in order to enhance the conver­ gence of supervisory practises in applying the exemp­ tions in points (c) and (d).’;

17. in Article 89(1)(d), the introductory part is replaced by the following:

(b) the following paragraph is added:

‘3.

In order to determine the existence of a group of

‘(d) exposures to central governments of the Member States and their regional governments, local authorities and administrative bodies provided that:’;

18. Article 97(2) is replaced by the following:

connected clients, in respect of exposures referred to in points (m), (o) and (p) of Article 79(1), where there is an exposure to underlying assets, a credit institution shall assess the scheme, its underlying exposures, or both. For that purpose, a credit institution shall evaluate the eco­ nomic substance and the risks inherent in the structure

of the transaction.’;

‘2.

The competent authorities shall recognise an ECAI as

eligible for the purpose of paragraph 1 of this Article only if they are satisfied as to its compliance with the requirements laid down in Article 81, taking into account the technical cri­ teria set out in Annex VI, Part 2, and that it has a demon­ strated ability in the area of securitisation, which may be evidenced by a strong market acceptance. Where an ECAI is registered as a credit rating agency in accordance with Regu­ lation (EC) No 1060/2009, the competent authorities shall consider the requirements of objectivity, independence, ongoing review and transparency with respect to its assess­

ment methodology to be satisfied.’;

20. Article 107 is replaced by the following:

‘Article 107

For the purposes of calculating the value of exposures in accordance with this Section, the term “credit institution” also means any private or public undertaking, including its branches, which meets the definition of “credit institution” and has been authorised in a third country.’;

19. Article 106 is amended as follows:

21. Article 110 is replaced by the following:

(a) paragraph 2 is replaced by the following:

‘Article 110

‘2.

Exposures shall not include any of the following:

1.

A credit institution shall report the following informa­

tion about every large exposure to the competent authorities, including large exposures exempted from the application of

  • (a)

    in the case of foreign exchange transactions, expo­ sures incurred in the ordinary course of settlement during the two working days following payment;

  • (b)

    in the case of transactions for the purchase or sale of securities, exposures incurred in the ordinary course of settlement during five working days fol­ lowing payment or delivery of the securities, which­ ever the earlier;

(c) in the case of the provision of money transmission including the execution of payment services, clear­ ing and settlement in any currency and correspon­ dent banking or financial instruments clearing,

Article 111(1):

  • (a)

    the identification of the client or the group of connected clients to which a credit institution has a large exposure;

  • (b)

    the exposure value before taking into account the effect of the credit risk mitigation, when applicable;

  • (c)

    where used, the type of funded or unfunded credit protection;

  • (d)

    the exposure value after taking into account the effect of the credit risk mitigation calculated for the purpose of Article 111(1).

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