Article 467(3) of Regulation (EU) No 575/2013: Unrealised losses measured at fair value
1. During the period from 1 January 2016 to 31 December 2017, credit institutions shall include in the calculation of their Common Equity Tier 1 items only the applicable percentage of unrealised losses within the meaning of Article 467(1) of Regulation (EU) 575/2013 and including losses on exposures to central governments classified in the ‘available for sale’ category.
2. For the purposes of paragraph 1, the applicable percentage shall be:
(a)
60 % during the period from 1 January 2016 to 31 December 2016; and
(b)
80 % during the period from 1 January 2017 to 31 December 2017.
3. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets applicable percentages higher than those specified in paragraph 2.
Article 468(3) of Regulation (EU) No 575/2013: Unrealised gains measured at fair value
1. During the period from 1 January 2016 to 31 December 2017, credit institutions shall remove from their calculation of Common Equity Tier 1 items the applicable percentage of unrealised gains within the meaning of Article 468(1) of Regulation (EU) No 575/2013 and including gains on exposures to central governments classified in the ‘available for sale’ category.
2. For the purposes of paragraph 1, the applicable percentage shall be:
(a)
40 % during the period from 1 January 2016 to 31 December 2016; and
(b)
20 % during the period from 1 January 2017 to 31 December 2017.
3. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets applicable percentages that are higher than those specified in paragraph 2.
Article 471(1) of Regulation (EU) No 575/2013: Exemption from deduction of equity holdings in insurance companies from Common Equity Tier 1 items
1. During the period from 1 January 2016 to 31 December 2018, credit institutions shall be permitted not to deduct equity holdings in insurance undertakings, reinsurance undertakings and insurance holding companies from Common Equity Tier 1 items in accordance with the treatment set out in national provisions, provided that the conditions referred to in Article 471(1) of Regulation (EU) No 575/2013 are met.
2. From 1 January 2019, credit institutions are required to deduct equity holdings in insurance undertakings, reinsurance undertakings and insurance holding companies from Common Equity Tier 1 items.
3. This Article applies without prejudice to decisions taken by the competent authority pursuant to Article 49(1) of Regulation (EU) No 575/2013.
Article 473(1) of Regulation (EU) No 575/2013: Introduction of amendments to the International Accounting Standard 19
1. During the period from 1 January 2016 to 31 December 2018, credit institutions may add to their Common Equity Tier 1 capital the amount referred to in Article 473(1) of Regulation (EU) No 575/2013 multiplied by the applicable factor, which shall be:
(a)
0,6 during the period from 1 January 2016 to 31 December 2016;
(b)
0,4 during the period from 1 January 2017 to 31 December 2017;
(c)
0,2 during the period from 1 January 2018 to 31 December 2018.
2. This Article is without prejudice to previous decisions of the national competent authorities or national law in force prior to the entry into force of this Regulation where such decisions or national law do not permit institutions to add to their Common Equity Tier 1 capital the amount referred to in paragraph 1.
Article 478(3)(a),(c) and (d) of Regulation (EU) No 575/2013: Applicable percentages for deduction from Common Equity Tier 1, additional Tier 1 and Tier 2 items
1. For the purposes of Article 478(1) of Regulation (EU) No 575/2013, the applicable percentage shall be:
(a)
60 % during the period from 1 January 2016 to 31 December 2016;
(b)
80 % during the period from 1 January 2017 to 31 December 2017;
(c)
100 % from 1 January 2018.
2. This Article shall not apply to deferred tax assets that rely on future profitability.
3. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets percentages that are higher than those specified in paragraph 1.
Article 478(3)(a) and (b) of Regulation (EU) No 575/2013: Applicable percentages for deduction from Common Equity Tier 1 of significant investments in financial sector entities and deferred tax assets that rely on future profitability
1. For the purposes of Article 478(1) of Regulation (EU) No 575/2013, the applicable percentage for the purposes of Article 469(1)(a) and (c) of that Regulation shall be:
(a)
60 % during the period from 1 January 2016 to 31 December 2016;
(b)
80 % during the period from 1 January 2017 to 31 December 2017;
(c)
100 % from 1 January 2018.
2. For the purposes of Article 478(2) of Regulation (EU) No 575/2013, the applicable percentage shall be:
(a)
60 % during the period from 1 January 2016 to 31 December 2016;
(b)
80 % during the period from 1 January 2017 to 31 December 2017;
(c)
100 % from 1 January 2018.
3. By way of derogation from paragraph 2, where, pursuant to Article 478(2) of Regulation (EU) No 575/2013, national law provides for a 10-year phase-out period, the applicable percentage shall be:
(a)
40 % during the period from 1 January 2016 to 31 December 2016;
(b)
60 % during the period from 1 January 2017 to 31 December 2017;
(c)
80 % during the period from 1 January 2018 to 31 December 2018;
(d)
100 % from 1 January 2019.
4. Paragraphs 2 and 3 shall not apply to credit institutions which, at the date of entry into force of this Regulation, are subject to restructuring plans approved by the Commission.
5. Where a credit institution falling within the scope of paragraph 4 is acquired by or merges with another credit institution while the restructuring plan is still in operation without modification concerning the prudential treatment of deferred tax assets, the exception in paragraph 4 shall apply to the acquiring credit institution, new credit institution resulting from the merger or credit institution incorporating the original credit institution, to the same extent that it applied to the acquired, merged or incorporated credit institution.
6. The ECB may review the application of paragraphs 4 and 5 in 2020 based on monitoring of the situation of those credit institutions.
7. In the event of an unforeseen increase in the impact of the deductions provided for in paragraphs 2 and 3 which the ECB determines is material, credit institutions shall be allowed not to apply paragraph 2 or 3.
8. Where paragraphs 2 and 3 do not apply, credit institutions can apply national legislative provisions.
9. This Article is without prejudice to national law in force prior to the entry into force of this Regulation, provided that such law sets percentages that are higher than those specified in paragraphs 1, 2 and 3.
Article 479(1) and (4) of Regulation (EU) No 575/2013: Recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests
1. During the period from 1 January 2016 to 31 December 2017, the applicable percentage of the items referred to in Article 479(1) of Regulation (EU) No 575/2013 that would have qualified as consolidated reserves in accordance with national measures implementing Article 65 of Directive 2006/48/EC of the European Parliament and of the Council ( 9 ) shall qualify as consolidated Common Equity Tier 1 capital according to the percentages set out below.
2. For the purposes of paragraph 1, the applicable percentage shall be:
(a)
40 % during the period from 1 January 2016 to 31 December 2016; and
(b)
20 % during the period from 1 January 2017 to 31 December 2017.
3. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets percentages that are lower than those specified in paragraph 2.
Article 480(3) of Regulation (EU) No 575/2013: Recognition in consolidated own funds of minority interests and qualifying additional Tier 1 and Tier 2 capital
1. During the period from 1 January 2016 to 31 December 2017, as referred to in Article 480(3) of Regulation (EU) No 575/2013, the value of the applicable factor under Article 480(1) of that Regulation shall be:
(a)
0,6 during the period from 1 January 2016 to 31 December 2016; and
(b)
0,8 during the period from 1 January 2017 to 31 December 2017.
2. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets factors that are higher than those specified in paragraph 1.
Article 481(1) and (5) of Regulation (EU) No 575/2013: Additional filters and deductions
1. During the period from 1 January 2016 to 31 December 2017, for the purpose of applying filters or deductions required under national transposition measures and referred to in Article 481(1) of Regulation (EU) No 575/2013 and provided that the conditions thereof are met, the applicable percentages shall be:
(a)
40 % during the period from 1 January 2016 to 31 December 2016; and
(b)
20 % during the period from 1 January 2017 to 31 December 2017.
2. During the period from 1 January 2016 to 31 December 2017, credit institutions shall apply the treatment provided for by national law to the amount remaining after the filter or deduction has been applied in accordance with paragraph 1.
3. This Article is without prejudice to national law in force prior to the entry into force of this Regulation where such law sets stricter requirements than those specified in paragraph 1.
Article 486(6) of Regulation (EU) No 575/2013: Limits for grandfathering items within Common Equity Tier 1, Additional Tier 1 and Tier 2 items
1. For the purposes of Article 486 of Regulation (EU) No 575/2013, the applicable percentages shall be:
(a)
60 % during the period from 1 January 2016 to 31 December 2016;
(b)
50 % during the period from 1 January 2017 to 31 December 2017;
(c)
40 % during the period from 1 January 2018 to 31 December 2018;
(d)
30 % during the period from 1 January 2019 to 31 December 2019;
(e)
20 % during the period from 1 January 2020 to 31 December 2020;
(f)
10 % during the period from 1 January 2021 to 31 December 2021.
2. This Article is without prejudice to national law in force prior to the entry into force of this Regulation, provided that such law sets percentages that are lower than those specified in paragraph 1.
Article 495(1) of Regulation (EU) No 575/2013: Treatment of equity exposures under the Internal Ratings Based (IRB) approach
The categories of equity exposures that benefit from the exemption from the IRB approach in accordance with Article 495(1) of Regulation (EU) No 575/2013 shall include, until 31 December 2017, only the categories of equity exposures that on 31 December 2013 were already benefiting from an exemption from the IRB treatment, in accordance with Article 2 of Commission Delegated Regulation (EU) 2015/1556 ( 10 ) .
Entry into force
1. This Regulation shall enter into force on 1 October 2016.
2. Article 4 shall apply from 31 December 2016 and Article 13 shall apply from 1 January 2019.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
