Art. 128

in force 2025-01-01 MODIFIED+569 −1,054§

Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795

applies from: unchanged

The heading and substance of Article 128 changed from covering 'Items associated with particular high risk', including venture capital, private equity and speculative immovable property financing with a 150% risk weight and EBA guidance provisions, to a new heading 'Subordinated debt exposures' defining subordinated debt exposures as debt subordinated to ordinary unsecured creditors, certain own funds instruments, and holdings of eligible liabilities instruments meeting Article 72b conditions.

The 150% risk weight assignment is retained in the after text but is now applied specifically to subordinated debt exposures, with an exception where those exposures are deducted from own funds or subject to the treatment in Article 72e(5), first subparagraph, whereas the before text applied the 150% weight to exposures associated with particularly high risk generally and included a separate paragraph 3 on risk characteristics and EBA guidelines that no longer appears.

Cited: Art. 128, v1 · Art. 128, v2

Article 128
Items associated with particular high risk
1. Institutions shall assign a 150 % risk weight to exposures that are associated with particularly high risks.
2. For the purposes of this Article, institutions shall treat any of the following exposures as exposures associated with particularly high risks:
(a) investments in venture capital firms, except where those investments are treated in accordance with Article 132;
(b) investments in private equity, except where those investments are treated in accordance with Article 132;
(c) speculative immovable property financing.
3. When assessing whether an exposure other than exposures referred to in paragraph 2 is associated with particularly high risks, institutions shall take into account the following risk characteristics:
(a) there is a high risk of loss as a result of a default of the obligor;
(b) it is impossible to assess adequately whether the exposure falls under point (a).
EBA shall issue guidelines specifying which types of exposures are associated with particularly high risk and under which circumstances.
Those guidelines shall be adopted in accordance with Article 16 of Regulation (EU) No 1093/2010.

Article 128
Subordinated debt exposures
1. The following exposures shall be treated as subordinated debt exposures:
(a) debt exposures which are subordinated to claims of ordinary unsecured creditors;
(b) own funds instruments to the extent that those instruments are not considered to be equity exposures in accordance with Article 133(1); and
(c) exposures arising from the institution’s holding of eligible liabilities instruments that meet the conditions set out in Article 72b.
2. Subordinated debt exposures shall be assigned a risk weight of 150 %, unless those subordinated debt exposures are deducted from own funds or subject to the treatment set out in Article 72e(5), first subparagraph.

in force 2024-07-09 MODIFIED§

Amended by Regulation (EU) 2024/1623 32024R1623

applies from: unknown

Sources disagree — the amending act's instructions found this change; the text comparison finds no difference in the provision's text and the EU's own amendment metadata does not list it. All are shown; none is overruled.

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships as `disputed`.

text before / after, on the event page →

in force 2023-06-28 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

Sources disagree — the amending act's instructions found this change; the text comparison finds no difference in the provision's text and the EU's own amendment metadata does not list it. All are shown; none is overruled.

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships as `disputed`.

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in force 2021-06-28 MODIFIED§

Amended by Regulation (EU) 2019/2033 32019R2033 · Regulation (EU) 2019/876 32019R0876 · Regulation (EU) 2021/558 32021R0558 · Regulation (EU) 2020/873 32020R0873

applies from: unchanged

Paragraph 1 no longer refers specifically to exposures in the form of shares or units in a CIU, instead applying the 150% risk weight generally to exposures associated with particularly high risks.

Paragraph 2 changes the wording from listing exposures that 'shall include' particularly high risk categories to directing institutions to 'treat' certain exposures as such, and it removes the separate category for investments in AIFs while adding carve-outs for venture capital firm investments and private equity investments that are treated in accordance with Article 132.

Cited: Art. 128, v1 · Art. 128, v2

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in force 2020-12-28 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

Sources disagree — the amending act's instructions found this change; the text comparison finds no difference in the provision's text and the EU's own amendment metadata does not list it. All are shown; none is overruled.

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships as `disputed`.

text before / after, on the event page →

in force 2019-06-27 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

Sources disagree — the amending act's instructions found this change; the text comparison finds no difference in the provision's text and the EU's own amendment metadata does not list it. All are shown; none is overruled.

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships as `disputed`.

text before / after, on the event page →

detected 2026-08-13 MODIFIED§

no amending act named

applies from: unchanged

The wording of paragraph 3's introductory sentence changed from referring to "the paragraph 2" to referring to "paragraph 2", removing the definite article.

Cited: Art. 128, v1 · Art. 128, v2

text before / after, on the event page →