Deduction of holdings of Tier 2 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
Article 68
Institutions shall make the deductions required by points (b), (c) and (d) of Article 66 in accordance with the following provisions: (a) holdings of Tier 2 instruments shall be calculated on the basis of the gross long positions; (b) holdings of Tier 2 own-fund insurance items and Tier 3 own-fund insurance items shall be treated as holdings of Tier 2 instruments for the purposes of deduction.