in force 2025-01-01 MODIFIED+1,727 −1,942§
Amended by Regulation (EU) 2024/1623 32024R1623 · Regulation (EU) 2024/2987 32024R2987 · Regulation (EU) 2024/2795 32024R2795
applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2024-07-08, 2024-12-31, 2029-12-31 · dates removed: 2007-12-31, 2014-06-30, 2017-12-31
The provision no longer describes a competent-authority exemption for equity exposures held as at 31 December 2007 or a matching risk-weight rule for domestic-currency sovereign exposures, and it removes the earlier mandate for EBA to draft regulatory technical standards on that exemption by 30 June 2014.
Instead the text now sets out, for institutions permitted to use the IRB Approach for equity exposures, a calculation of the risk-weighted exposure amount as the higher of two amounts referencing Article 495a and the version of the Regulation applicable on 8 July 2024, an alternative option to apply Article 133 treatment, an expected-loss calculation tied to the 8 July 2024 versions of Article 158 and related provisions, and a bar on competent authorities granting new IRB permission for equity exposures after 31 December 2024, all running until 31 December 2029.
Cited: Art. 495, v2 · Art. 495, v1
text before / after
texts differ too much for an inline diff; shown separately
before (02013R0575-20240709)
Article 495 Treatment of equity exposures under the IRB Approach 1. Until 31 December 2017, the competent authorities may, by way of derogation from Chapter 3 of Part Three, exempt from the IRB treatment certain categories of equity exposures held by institutions and EU subsidiaries of institutions in that Member State as at 31 December 2007. The competent authority shall publish the categories of equity exposures which benefit from such treatment in accordance with Article 143 of Directive 2013/36/EU. The exempted position shall be measured as the number of shares as at 31 December 2007 and any additional share arising directly as a result of owning those holdings, provided that they do not increase the proportional share of ownership in a portfolio company. If an acquisition increases the proportional share of ownership in a specific holding the part of the holding which constitutes the excess shall not be subject to the exemption. Nor shall the exemption apply to holdings that were originally subject to the exemption, but have been sold and then bought back. Equity exposures subject to this provision shall be subject to the capital requirements calculated in accordance with the Standardised Approach under Part Three, Title II, Chapter 2 and the requirements set out in Title IV of Part Three, as applicable. Competent authorities shall notify the Commission and EBA of the implementation of this paragraph. 2. In the calculation of risk-weighted exposure amounts for the purposes of Article 114(4), until 31 December 2017 the same risk weight shall be assigned in relation to exposures to the central governments or central banks of Member States denominated and funded in the domestic currency of any Member State as would be applied to such exposures denominated and funded in their domestic currency. 3. EBA shall develop draft regulatory technical standards to specify the conditions according to which competent authorities shall afford the exemption referred to in paragraph 1. EBA shall submit those draft regulatory technical standards to the Commission by 30 June 2014. Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
after (02013R0575-20250101)
Article 495 Treatment of equity exposures under the IRB Approach 1. By way of derogation from Article 107(1), institutions that have been granted permission to apply the IRB Approach to calculate the risk-weighted exposure amount for equity exposures shall, until 31 December 2029 and without prejudice to Article 495a(3), calculate the risk-weighted exposure amount for each equity exposure for which they have been granted permission to apply the IRB Approach as the higher of the following: (a) the risk-weighted exposure amount calculated in accordance with Article 495a(1) and (2); (b) the risk-weighted exposure amount calculated under this Regulation in the version applicable on 8 July 2024. 2. Instead of applying the treatment laid down in paragraph 1, institutions that have been granted permission to apply the IRB Approach to calculate the risk-weighted exposure amount for equity exposures may apply the treatment set out in Article 133 to all their equity exposures at any time until 31 December 2029. Where institutions apply the first subparagraph of this paragraph, Article 495a(1) and (2) shall not apply. For the purposes of this paragraph, the conditions to revert to the use of less sophisticated approaches set out in Article 149 shall not apply. 3. Institutions applying the treatment laid down in paragraph 1 of this Article shall calculate the expected loss amount in accordance with Article 158(7), (8) or (9), as applicable, in the version of those paragraphs applicable on 8 July 2024 and apply Article 36(1), point (d), and Article 62, point (d), as applicable, in the version of those points applicable on 8 July 2024 where the risk-weighted exposure amount calculated pursuant to paragraph 1, point (b), of this Article is higher than the risk-weighted exposure amount calculated pursuant to paragraph 1, point (a), of this Article. 4. Where institutions request permission to apply the IRB Approach to calculate the risk-weighted exposure amount for equity exposures, competent authorities shall not grant such permission after 31 December 2024.