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Having regard to the proposal from the Commission, - page 11 / 23

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17.11.2009

EN

Official Journal of the European Union

L 302/107

If a credit institution is subject to Articles 84 to 89, its 20

(b) paragraphs 2 and 3 are deleted;

largest exposures on a consolidated basis, excluding those exempted from the application of Article 111(1), shall be made available to the competent authorities.

(c) paragraph 4 is replaced by the following:

‘4.

A credit institution shall at all times comply with

2.

Member States shall provide that reporting is to be car­

ried out at least twice a year. The competent authorities shall apply, from 31 December 2012, uniform formats, frequen­ cies and dates of reporting. To facilitate this, the Committee of European Banking Supervisors shall elaborate guidelines to introduce, within the Community, a uniform reporting format before 1 January 2012. The reporting formats shall be proportionate to the nature, scale and complexity of the

credit institutions’ activities.

3.

Member States shall require credit institutions to anal­

the relevant limit laid down in paragraph 1. If, in an exceptional case, exposures exceed this limit, the value of the exposure shall be reported without delay to the competent authorities which may, where the circum­ stances warrant it, allow the credit institution a limited

period of time in which to comply with the limit.

Where the amount of EUR 150 million referred to in paragraph 1 is applicable, the competent authorities may allow on a case-by-case basis the 100 % limit in terms of the credit institution’s own funds to be exceeded.’;

yse, to the extent possible, their exposures to collateral issu­ ers, providers of unfunded credit protection and underlying assets pursuant to Article 106(3) for possible concentrations and where appropriate take action and report any significant

findings to their competent authority.’;

23. Article 112 is amended as follows:

(a) paragraph 2 is replaced by the following:

‘2.

Subject to paragraph 3 of this Article, where,

22. Article 111 is amended as follows:

(a) paragraph 1 is replaced by the following:

under Articles 113 to 117, the recognition of funded or unfunded credit protection is permitted, this shall be subject to compliance with the eligibility requirements and other minimum requirements, set out in Articles 90

to 93.’;

‘1.

A credit institution shall not incur an exposure,

(b) the following paragraph is added:

after taking into account the effect of the credit risk miti­ gation in accordance with Articles 112 to 117, to a cli­ ent or group of connected clients the value of which

exceeds 25 % of its own funds.

‘4.

For the purpose of this Section, a credit institution

shall not take into account the collateral referred to in Annex VIII, Part 1, points 20 to 22, unless permitted

under Article 115.’;

Where that client is an institution or where a group of connected clients includes one or more institutions, that value shall not exceed 25 % of the credit institution’s own funds or EUR 150 million, whichever the higher, provided that the sum of exposure values, after taking into account the effect of the credit risk mitigation in accordance with Articles 112 to 117, to all connected clients that are not institutions does not exceed 25 % of the credit institution’s own funds.

  • 24.

    Article 113 is amended as follows:

    • (a)

      paragraphs 1 and 2 are deleted;

    • (b)

      paragraph 3 is amended as follows:

    • (i)

      the introductory part is replaced by the following:

Where the amount of EUR 150 million is higher than 25 % of the credit institution’s own funds, the value of the exposure, after taking into account the effect of credit risk mitigation in accordance with Articles 112 to 117, shall not exceed a reasonable limit in terms of the credit institution’s own funds. That limit shall be determined by credit institutions, consistently with the policies and procedures referred to in Annex V, point 7, to address and control concentration risk, and shall not be higher than 100 % of the credit institution’s own funds.

Member States may set a lower limit than EUR 150 mil­ lion and shall inform the Commission.’;

‘3.

The following exposures shall be exempted

from the application of Article 111(1):’;

(ii) points (e) and (f) are replaced by the following:

‘(e) asset items constituting claims on regional gov­ ernments or local authorities of Member States where those claims would be assigned a 0 % risk weight under Articles 78 to 83 and other exposures to or guaranteed by those regional governments or local authorities, claims on which would be assigned a 0 % risk weight under Articles 78 to 83;

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