emendrix

Art. 500a

Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex

Temporary treatment of public debt issued in the currency of another Member State

2 changes recorded across 2 events, newest first.

in force 2024-07-09 MODIFIED+35 −35

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: 2026-01-01, 2026-12-31, 2027-01-01, 2027-12-31 · dates removed: 2022-12-31, 2023-12-31, 2024-01-01, 2025-01-01

The overall derogation end date in paragraph 1 moved from 31 December 2024 to 31 December 2026, with the risk-weight schedule dates in points (a), (b) and (c) each shifted two years later.

The Tier 1 capital exposure limits in paragraph 2 were likewise shifted two years later, with each of the three dated thresholds in points (a), (b) and (c) moved forward from 2023-2025 to 2025-2027.

Cited: Art. 500a, v2

text before / after

02013R0575-2024010902013R0575-20240709

Article 500a Temporary treatment of public debt issued in the currency of another Member State 1. By way of derogation from Article 114(2), until 31 December 2024, 2026, for exposures to the central governments and central banks of Member States, where those exposures are denominated and funded in the domestic currency of another Member State, the following apply: (a) until 31 December 2022, 2024, the risk weight applied to the exposure values shall be 0 % of the risk weight assigned to those exposures in accordance with Article 114(2); (b) in 2023, 2025, the risk weight applied to the exposure values shall be 20 % of the risk weight assigned to those exposures in accordance with Article 114(2); (c) in 2024, 2026, the risk weight applied to the exposure values shall be 50 % of the risk weight assigned to those exposures in accordance with Article 114(2). 2. By way of derogation from Articles 395(1) and 493(4), competent authorities may allow institutions to incur exposures referred to in paragraph 1 of this Article, up to the following limits: (a) 100 % of the institution’s Tier 1 capital until 31 December 2023; 2025; (b) 75 % of the institution’s Tier 1 capital between 1 January and 31 December 2024; 2026; (c) 50 % of the institution’s Tier 1 capital between 1 January and 31 December 2025. 2027. The limits referred to in points (a), (b) and (c) of the first subparagraph of this paragraph shall apply to exposure values after taking into account the effect of the credit risk mitigation in accordance with Articles 399 to 403. 3. By way of derogation from point (ii) of point (d) of Article 150(1), after receiving the prior permission of the competent authorities and subject to the conditions laid down in Article 150, institutions may also apply the Standardised Approach to exposures to central governments and central banks, where those exposures are assigned a 0 % risk weight under paragraph 1 of this Article.

in force 2020-06-27 INSERTED

Amended by Regulation (EU) 2020/873 32020R0873

applies from: unknown (an inserted provision states its own application date only in prose)

A new Article 500a is added, setting out a temporary derogation for exposures to central governments and central banks of Member States that are denominated and funded in another Member State's domestic currency, applying reduced risk weights of 0%, 20% and 50% of the Article 114(2) weight for the years up to and including 2022, 2023 and 2024 respectively.

It also lets competent authorities allow institutions to exceed the large-exposure limits of Articles 395(1) and 493(4) for such exposures, up to tiered percentages of Tier 1 capital of 100%, 75% and 50% for periods ending in 2023, 2024 and 2025 respectively, calculated after credit risk mitigation under Articles 399 to 403.

A further derogation permits institutions, with prior competent authority permission and subject to Article 150's conditions, to apply the Standardised Approach under point (ii) of point (d) of Article 150(1) to exposures given a 0% risk weight under this new article.

Cited: Art. 500a, v2

text before / after, on the event page →