Art. 500
Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex
Adjustment for massive disposals
6 changes recorded across 6 events, newest first.
in force 2024-07-09 MODIFIED+856 −38§
Amended by Regulation (EU) 2024/1623 32024R1623
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: 2024-12-31, 2026-12-31 · dates removed: 2022-06-28
The deadline for disposal dates in point (b) of paragraph 1 was moved from 28 June 2022 to 31 December 2024, and the same later date replaces the earlier cutoff for when the adjustment may be carried out in the closing text of paragraph 1.
A new paragraph 3 was added requiring the Commission to assess, by 31 December 2026 and every two years thereafter, factors relating to defaulted exposure levels, asset quality deterioration, and secondary market development, and to review the appropriateness of the paragraph 1 derogation with a possible legislative proposal.
Cited: Art. 500, v1 · Art. 500, v2
text before / after
02013R0575-20240109 → 02013R0575-20240709
Article 500
Adjustment for massive disposals
1. By way of derogation from point (a) of Article 181(1), an institution may adjust its LGD estimates by partly or fully offsetting the effect of massive disposals of defaulted exposures on realised LGDs up to the difference between the average estimated LGDs for comparable exposures in default that have not been finally liquidated and the average realised LGDs including on the basis of the losses realised due to massive disposals, as soon as all the following conditions are met:
(a) the institution has notified the competent authority of a plan providing the scale, composition and the dates of the disposals of defaulted exposures;
(b) the dates of the disposals of defaulted exposures are after 23 November 2016 but not later than 28 June 2022; 31 December 2024;
(c) the cumulative amount of defaulted exposures disposed of since the date of the first disposal in accordance with the plan referred to in point (a) has surpassed 20 % of the outstanding amount of all defaulted exposures as of the date of the first disposal referred to in points (a) and (b).
The adjustment referred to in the first subparagraph may only be carried out until 28 June 2022 31 December 2024 and its effects may last for as long as the corresponding exposures are included in the institution's institution’s own LGD estimates.
2. Institutions shall notify the competent authority without delay when the condition set out in point (c) of paragraph 1 has been met.3. The Commission shall, by 31 December 2026, and every two years thereafter, assess whether the level of defaulted exposures in the balance sheets of the institutions has increased significantly, whether it expects a significant deterioration in the institutions’ asset quality, and whether the degree of development of secondary markets for defaulted exposures is not adequate to ensure efficient disposals of defaulted exposures by institutions, also taking into consideration the regulatory developments on securitisation.
The Commission shall review the appropriateness of the derogation set out in paragraph 1 and shall, where appropriate, submit a legislative proposal to the European Parliament and to the Council to extend, reintroduce or amend, as needed, the adjustment provided for in this Article.
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`.
text before / after, on the event page →
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.
In point (c) of Article 500(1), the base against which the 20% threshold of disposed defaulted exposures is measured changed from the cumulative amount of all observed defaults to the outstanding amount of all defaulted exposures.
Cited: Art. 500, v1 · Art. 500, v2
text before / after, on the event page →
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 (the text changed beyond its dates, so no date that moved can be read as the application date)
dates added to the text: 2016-11-23, 2022-06-28 · dates removed: 2000-03-20, 2007-01-01, 2010-01-01, 2017-01-01, 2017-12-31
The article's heading and substance have both changed: the earlier version set out Basel I floor transitional own-funds requirements tied to dates of 20 March 2000, 1 January 2007, 1 January 2010 and 31 December 2017, while the later version instead addresses adjustment of LGD estimates for massive disposals of defaulted exposures, referencing dates of 23 November 2016 and 28 June 2022.
The prior paragraphs (1)-(6) concerning Basel I floor compliance, waivers by competent authorities, and a Commission reporting obligation have been replaced by new paragraphs (1) and (2) concerning conditions for LGD adjustment and a notification duty to the competent authority once a disposal threshold is met.
Cited: Art. 500, v1 · Art. 500, v2
text before / after, on the event page →
detected 2026-08-13 MODIFIED§
no amending act named
applies from: unchanged
The heading's dash style changed and the paragraph numbering now places each paragraph number on its own line, but the substantive wording of paragraphs 1 through 4 is unchanged.
In paragraph 2 the phrase describing risk-weighted exposure amounts calculation now reads with a hyphen in "risk-weighted" rather than without one, a formatting change only.
Paragraph 5 now refers to "the IRB Approach" and to "consulting EBA" instead of "the Internal Ratings Based Approach" and "having consulted EBA", and paragraph 6 reorders the phrase so that "By 1 January 2017" now opens the sentence instead of following "shall".
Cited: Art. 500, v1 · Art. 500, v2
text before / after, on the event page →