575/2013

The legislation has been 575/2013 several times, in line with evolving international regulatory standards set by the Basel Committee on Banking Supervision, 575/2013.

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575/2013

Having regard to the Treaty on the Functioning of the European Union, and in particular Article thereof,. Having regard to the opinion of the European Central Bank 1 ,. Having regard to the opinion of the European Economic and Social Committee 2 ,. The G Declaration of 2 April on Strengthening of the Financial System called for internationally consistent efforts that are aimed at strengthening transparency, accountability and regulation by improving the quantity and quality of capital in the banking system once the economic recovery is assured. That declaration also called for introduction of a supplementary non-risk based measure to contain the build-up of leverage in the banking system, and the development of a framework for stronger liquidity buffers. Those measures were endorsed by the G leaders at their Pittsburgh Summit of September and were set out in detail in December This Regulation should therefore be read together with that Directive. This Regulation should, inter alia, contain the prudential requirements for institutions that relate strictly to the functioning of banking and financial services markets and are meant to ensure the financial stability of the operators on those markets as well as a high level of protection of investors and depositors. This Regulation aims at contributing in a determined manner to the smooth functioning of the internal market and should, consequently, be based on the provisions of Article TFEU, as interpreted in accordance with the consistent case-law of the Court of Justice of the European Union. This results in divergences between national rules, which might hamper the cross-border provision of services and the freedom of establishment and so create obstacles to the smooth functioning of the internal market. For reasons of legal certainty and because of the need for a level playing field within the Union, a single set of regulations for all market participants is a key element for the functioning of the internal market. In order to avoid market distortions and regulatory arbitrage, prudential minimum requirements should therefore ensure maximum harmonisation. As a consequence, the transitional periods provided for in this Regulation are essential for the smooth implementation of this Regulation and to avoid uncertainty for the markets.

For example, 575/2013, some assets, such as cash, 575/2013 considered safe and do not attract a capital requirement; other assets — such as loans to other banks, businesses or consumers — are considered more risky and thus have a capital requirement.

It applies from 1 January The financial crisis has shown that losses in the financial sector can be extremely large when a downturn is preceded by a period of excessive credit growth. The financial crisis revealed vulnerabilities in the regulation and supervision of the banking system at European and global level. Institutions entered the crisis with capital of insufficient quantity and quality and, in order to safeguard financial stability, governments had to provide support to the banking sector in many countries. First, Basel III is not a law. It is the latest configuration of an evolving set of internationally agreed standards developed by supervisors and central banks.

Uredba EU br. OJ L , In force: This act has been changed. Languages, formats and link to OJ. Multilingual display. Te mjere poduprli su U srpnju i rujnu UFEU-a, koje djeluje na prijedlog Komisije. Komisija treba navesti razloge za upotrebu tog postupka.

575/2013

OJ L , In force: This act has been changed. Languages, formats and link to OJ. Multilingual display. Having regard to the Treaty on the Functioning of the European Union, and in particular Article thereof,. Having regard to the opinion of the European Central Bank 1 ,. Having regard to the opinion of the European Economic and Social Committee 2 ,.

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In line with the decision of the BCBS, as endorsed by the GHOS on 10 January , all additional Tier 1 and Tier 2 instruments of an institution should be capable of being fully and permanently written down or converted fully into Common Equity Tier 1 capital at the point of non-viability of the institution. Retrieved 6 December In the event of disagreement during the six months period, the consolidating supervisor shall consult EBA at the request of any of the other competent authorities concerned. The application shall indicate whether and how diversification effects are intended to be factored in the risk measurement system. For any given securitisation it suffices that only the originator, the sponsor or the original lender is subject to the requirement. EBA shall take its decision within one month. While it is desirable to base the calculation of the exposure value on that provided for the purposes of own funds requirements, it is appropriate to adopt rules for the monitoring of large exposures without applying risk weightings or degrees of risk. In addition, due diligence obligations need to be proportionate. Given the detail and number of regulatory technical standards that are to be adopted pursuant to this Regulation, where the Commission adopts a regulatory technical standard which is the same as the draft regulatory technical standard submitted by EBA, the period within which the European Parliament or the Council may object to a regulatory technical standard, should, where appropriate, be further extended by one month. This should not prevent institutions from paying, on shares that have differentiated or no voting rights, distributions that are a multiple of those paid on shares which have relatively higher levels of voting rights, provided that, irrespective of the level of voting rights, the strict criteria for Common Equity Tier 1 instruments are met, including those relating to the flexibility of payments, and provided that where a distribution is paid it is to be paid on all shares issued by the institution concerned. The condition laid down in the first subparagraph is without prejudice to the possibility for a mutual, cooperative society, savings institution or a similar institution to recognize within Common Equity Tier 1 instruments that do not afford voting rights to the holder and that meet all the following conditions:. Pending the outcome of that review, Member States should continue being allowed to decide on the exemption of certain large exposures from those rules for a sufficiently long transitional period.

It applies from 1 January

Similarly, with a view to protecting depositors and preserving financial stability, Member States should also be permitted to adopt structural measures that require credit institutions authorised in that Member State to reduce their exposures to different legal entities depending on their activities, irrespective of where those activities are located. A vote could be taken in accordance with the Rules of Procedure of the Council 8 at the request of a Member State or of the Commission. Article 53 1 of the TFEU. The management of such exposures incurred by institutions should be carried out in a fully autonomous manner, in accordance with the principles of sound management, without regard to any other considerations. This Regulation strengthens the way those financial conglomerates rules shall apply to bank and investment firm groups, ensuring their robust and consistent application. If two or more Member States' designated authorities identify the same changes in the intensity of systemic or macroprudential risk posing a risk to financial stability at the national level in each Member State which the designated authorities consider would better be addressed by means of national measures, the Member States may submit a joint notification to the Council, the Commission, the ESRB and EBA. For the purposes of point d , the model shall be developed or approved independently of the trading desk and shall be independently tested, including validation of the mathematics, assumptions and software implementation. In the latter situation, a pool- specific liquidity facility should generally not be considered a re-securitisation exposure because it represents a tranche of a single asset pool that is, the applicable pool of whole loans which contains no securitisation exposures. It should be clarified that, where the application of prudent valuation would lead to a lower carrying value than actually recognised in the accounting, the absolute value of the difference should be deducted from own funds. Paragraphs 2 to 8 of this Article shall not apply where Part Six applies on the basis of an institution's consolidated situation. Institutions should hold a diversified buffer of liquid assets that they can use to cover liquidity needs in a short term liquidity stress.