in force 2025-01-01 MODIFIED+1,663 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
Sources disagree about the kind of change — they agree this provision changed and disagree about how: the text comparison called it MODIFIED and the EU's own amendment metadata called it INSERTED. Both are shown; neither is overruled.
The before text only contained paragraph 4 covering EBA's regulatory technical standards mandate, while the after text adds paragraphs 1, 2 and 3 setting out the conditions under which an institution may exclude a foreign exchange risk hedging position from own funds requirements for market risk, a consistency requirement for such exclusions, and a competent authority approval requirement for changes to the risk management framework and risk position details.
Paragraph 4 itself, listing the items EBA must specify in draft regulatory technical standards and the submission deadline of 10 July 2026, remains textually the same in both versions.
Cited: Art. 104c, v1 · Art. 104c, v2
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 104c Treatment of foreign exchange risk hedges of capital ratios 1. An institution which has deliberately taken a risk position in order to hedge, at least partially, against adverse movements in foreign exchange rates on any of its capital ratios as referred to in Article 92(1), points (a), (b) and (c), may, subject to the permission of its competent authority, exclude that risk position from the own funds requirements for foreign exchange risk referred to in Article 325(1), provided that all of the following conditions are met: (a) the maximum amount of the risk position that is excluded from the own funds requirements for market risk is limited to the amount of the risk position that neutralises the sensitivity of any of the capital ratios to the adverse movements in foreign exchange rates; (b) the risk position is excluded from the own funds requirements for market risk for at least six months; (c) the institution has established an appropriate risk management framework for hedging the adverse movements in foreign exchange rates on any of its capital ratios, including a clear hedging strategy and governance structure; (d) the institution has provided to the competent authority a justification for excluding a risk position from the own funds requirements for market risk, the details of that risk position and the amount to be excluded. 2. Any exclusion of risk positions from the own funds requirements for market risk in accordance with paragraph 1 shall be applied consistently. 3. The competent authority shall approve any changes by the institution to the risk management framework referred to in paragraph 1, point (c), and to the details of the risk positions referred to in paragraph 1, point (d). 4. EBA shall develop draft regulatory technical standards to specify: (a) the risk positions that an institution can deliberately take in order to hedge, at least partially, against the adverse movements of foreign exchange rates on any of its capital ratios referred to in paragraph 1; (b) how to determine the maximum amount referred to in paragraph 1, point (a), of this Article and the manner in which an institution is to exclude that amount for each of the approaches referred to in Article 325(1); (c) the criteria to be met by an institution’s risk management framework referred to in paragraph 1, point (c), in order to be considered appropriate for the purposes of this Article. EBA shall submit those draft regulatory technical standards to the Commission by 10 July 2026. Power is delegated to the Commission to supplement this Regulation by adopting regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.