Art. 429
Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex
Calculation of the leverage ratio
5 changes recorded across 5 events, newest first.
in force 2025-01-01 MODIFIED+88 −78§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unchanged
In paragraph 5, the cross-reference to Article 92(3), point (d), has been changed to Article 92(4), point (e), and the internal reference format for point (b) was rephrased without altering its meaning.
In paragraph 6, the term 'security' has been replaced with 'financial asset' in both places it appeared, and the reference to paragraph 4 was rephrased to the 'paragraph 4, point (e)' format.
Cited: Art. 429, v2 · Art. 429, v1
text before / after
02013R0575-20240709 → 02013R0575-20250101
Article 429
Calculation of the leverage ratio
1. Institutions shall calculate their leverage ratio in accordance with the methodology set out in paragraphs 2, 3 and 4.
2. The leverage ratio shall be calculated as an institution's capital measure divided by that institution's … 358 unchanged words … receipt or provision of cash variation margin.
The treatment set out in point (b) of the first subparagraph shall also apply to an institution acting as a higher-level client that guarantees the performance of its client's trade exposures.
For the purposes of point (b) of the first subparagraph subparagraph, point (b), and of the second subparagraph of this paragraph, institutions may consider an affiliated entity as a client only where that entity is outside the regulatory scope of consolidation at the level at which the requirement set out in Article 92(4), point (d) of Article 92(3) (e), is applied.
6. For the purposes of paragraph 4, point (e) of paragraph 4 (e), of this Article and Article 429g, regular-way purchase or sale means a purchase or a sale of a security financial asset under contracts for which the terms require delivery of the security financial asset within the period established generally by law or convention in the marketplace concerned.
7. Unless otherwise expressly provided for in this Part, institutions shall calculate the total exposure measure in accordance with the following principles:
(a) physical or financial collateral, guarantees or credit risk mitigation purchased shall not be used to reduce the total exposure measure;
(b) assets shall not be netted with liabilities.
8. By way of derogation from point (b) of paragraph 7, institutions may reduce the exposure value of a pre-financing loan or an intermediate loan by the positive balance on the savings account of the debtor to which the loan was granted and only include the resulting amount in the total exposure measure, provided that all the following conditions are met:
(a) the granting of the loan is conditional upon the opening of the savings account at the institution granting the loan and both the loan and the savings account are regulated by the same sectoral law;
(b) the balance on the savings account cannot be withdrawn, in part or in full, by the debtor for the entire duration of the loan;
(c) the institution can unconditionally and irrevocably use the balance on the savings account to settle any claim originating under the loan agreement in cases regulated by the sectoral law referred to in point (a), including the case of non-payment by or the insolvency of the debtor.
Pre-financing loan or intermediate loan means a loan that is granted to the borrower for a limited period of time in order to bridge the borrower's financing gaps until the final loan is granted in accordance with the criteria laid down in the sectoral law regulating such transactions.
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`.
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in force 2021-09-30 MODIFIED§
Amended by Regulation (EU) 2021/424 32021R0424
applies from: unchanged
Sources disagree — the text comparison found this change; the EU's own amendment metadata does not list it and the amending act's instructions do not mention it. All are shown; none is overruled.
Point (a) of Article 429(5) now describes the item as an off-balance-sheet item under point (d) of paragraph 4 that is treated as a derivative under the applicable accounting framework, rather than describing it as a derivative instrument considered an off-balance-sheet item under that point.
The later text also specifies that such an item is subject to the treatment set out in point (b) of paragraph 4, whereas the earlier text referred only to the treatment set out in point (d) itself.
Cited: Art. 429, v1 · Art. 429, v2
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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
Sources disagree — the text comparison found this change; the EU's own amendment metadata does not list it. Both are shown; neither is overruled.
Paragraph 1 now refers only to paragraphs 2, 3 and 4 as the methodology for calculating the leverage ratio, instead of paragraphs 2 to 13.
Paragraph 4's list of components of the total exposure measure is restructured, with each item now pointing to separate articles (429b, 429c, 429d, 429e, 429f, 429g) for calculation of assets, derivatives, securities financing transactions, off-balance-sheet items and regular-way purchases or sales awaiting settlement, and a new provision allows reduction of certain exposure values by general credit risk adjustments subject to a floor of zero.
The former paragraphs 5 through 14, covering matters such as netting rules, QCCP treatment, fiduciary assets and public sector entity exposures, are replaced in the after text by new paragraphs 5 through 8 addressing derogations for derivative instruments and guarantees, the definition of regular-way purchase or sale, general netting principles, and treatment of pre-financing or intermediate loans.
Cited: Art. 429, v1 · Art. 429, v2
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in force 2015-01-18 MODIFIED§
Amended by Regulation (EU) 2015/62 32015R0062 · Regulation (EU) 2018/405 32018R0405
applies from: unchanged
The methodology reference in paragraph 1 now extends to paragraphs 2 to 13 rather than 2 to 11, and the number of substantive paragraphs in the article has increased, adding provisions such as paragraph 12 on guarantees for clients clearing through a QCCP and paragraph 14 on excluding certain public sector entity exposures.
The calculation instruction in paragraph 2 changed from computing the leverage ratio as a simple arithmetic mean of monthly leverage ratios over a quarter to calculating it at the reporting reference date, and the total exposure measure definition in paragraph 4 was restructured into a list of components covering assets, derivatives, counterparty credit risk add-ons under Article 429b, and off-balance sheet items instead of the prior single sum-based description.
The rules for exposure values of derivatives, off-balance sheet items, and repurchase-type transactions were reworded and relocated, including new netting conditions in paragraph 8, a cross-reference to Article 429a for derivatives in paragraph 9, and revised conversion factor treatment in paragraph 10, replacing the earlier detailed conversion-factor table and the separate significant investment calculation formerly in paragraph 4.
Cited: Art. 429, v1 · Art. 429, v2
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