What changed, Regulation (EU) 2019/630

+ ### Article 1
− ### art_1
− Article 1
− 
+ (1) in Article 36(1), the following point is added: ‘(m) the applicable amount of insufficient coverage for non-performing exposures.’;
− | (1) | in Article 36(1), the following point is added:‘(m)the applicable amount of insufficient coverage for non-performing exposures.’; |
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− | ‘(m) | the applicable amount of insufficient coverage for non-performing exposures.’; |
+ (2) the following Articles are inserted: ‘Article 47a Non-performing exposures **1.** For the purposes of point (m) of Article 36(1), exposure shall include any of the following items, provided they are not included in the trading book of the institution:(a) a debt instrument, including a debt secur…
− | (2) | the following Articles are inserted:‘Article 47aNon-performing exposures1. For the purposes of point (m) of Article 36(1), exposure shall include any of the following items, provided they are not included in the trading book of the institution:(a)a debt instrument, including a debt security,…
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− | (a) | a debt instrument, including a debt security, a loan, an advance and a demand deposit; |
− | (b) | a loan commitment given, a financial guarantee given or any other commitment given, irrespective of whether it is revocable or irrevocable, with the exception of undrawn credit facilities that may be cancelled unconditionally at any time and without notice, or that effectively provide for au…
− | (a) | an exposure in respect of which a default is considered to have occurred in accordance with Article 178; |
− | (b) | an exposure which is considered to be impaired in accordance with the applicable accounting framework; |
− | (c) | an exposure under probation pursuant to paragraph 7, where additional forbearance measures are granted or where the exposure becomes more than 30 days past due; |
− | (d) | an exposure in the form of a commitment that, were it drawn down or otherwise used, would likely not be paid back in full without realisation of collateral; |
− | (e) | an exposure in form of a financial guarantee that is likely to be called by the guaranteed party, including where the underlying guaranteed exposure meets the criteria to be considered as non-performing. |
− | (a) | the exposure meets the exit criteria applied by the institution for the discontinuation of the classification as impaired in accordance with the applicable accounting framework and of the classification as defaulted in accordance with Article 178; |
− | (b) | the situation of the obligor has improved to the extent that the institution is satisfied that full and timely repayment is likely to be made; |
− | (c) | the obligor does not have any amount past due by more than 90 days. |
− | (a) | the exposures have ceased to be in a situation that would lead to their classification as non-performing under paragraph 3; |
− | (b) | at least one year has passed since the date on which the forbearance measures were granted and the date on which the exposures were classified as non-performing, whichever is later; |
− | (c) | there is no past-due amount following the forbearance measures and the institution, on the basis of the analysis of the obligor's financial situation, is satisfied about the likelihood of the full and timely repayment of the exposure. |
− | (a) | the amount that was past due before the forbearance measure was granted, where there were amounts past due; |
− | (b) | the amount that has been written-off under the forbearance measures granted, where there were no amounts past due. |
− | (a) | at least two years have passed since the date on which the exposure subject to forbearance measures was re-classified as performing; |
− | (b) | regular and timely payments have been made during at least half of the period that the exposure would be under probation, leading to the payment of a substantial aggregate amount of principal or interest; |
− | (c) | none of the exposures to the obligor is more than 30 days past due. |
− | (a) | a modification of the terms and conditions of a debt obligation, where such modification would not have been granted had the obligor not experienced difficulties in meeting its financial commitments; |
− | (b) | a total or partial refinancing of a debt obligation, where such refinancing would not have been granted had the obligor not experienced difficulties in meeting its financial commitments. |
− | (a) | new contract terms are more favourable to the obligor than the previous contract terms, where the obligor is experiencing or is likely to experience difficulties in meeting its financial commitments; |
− | (b) | new contract terms are more favourable to the obligor than contract terms offered by the same institution to obligors with a similar risk profile at that time, where the obligor is experiencing or is likely to experience difficulties in meeting its financial commitments; |
− | (c) | the exposure under the initial contract terms was classified as non-performing before the modification to the contract terms or would have been classified as non-performing in the absence of modification to the contract terms; |
− | (d) | the measure results in a total or partial cancellation of the debt obligation; |
− | (e) | the institution approves the exercise of clauses that enable the obligor to modify the terms of the contract and the exposure was classified as non-performing before the exercise of those clauses, or would be classified as non-performing were those clauses not exercised; |
− | (f) | at or close to the time of the granting of debt, the obligor made payments of principal or interest on another debt obligation with the same institution, which was classified as a non-performing exposure or would have been classified as non-performing in the absence of those payments; |
− | (g) | the modification to the contract terms involves repayments made by taking possession of collateral, where such modification constitutes a concession. |
− | (a) | the initial contract was past due by more than 30 days at least once during the three months prior to its modification or would be more than 30 days past due without modification; |
− | (b) | at or close to the time of concluding the credit agreement, the obligor made payments of principal or interest on another debt obligation with the same institution that was past due by 30 days at least once during the three months prior to the granting of new debt; |
− | (c) | the institution approves the exercise of clauses that enable the obligor to change the terms of the contract, and the exposure is 30 days past due or would be 30 days past due were those clauses not exercised. |
− | (a) | the sum of:(i)the unsecured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 2;(ii)the secured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 3; |
− | (i) | the unsecured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 2; |
− | (ii) | the secured part of each non-performing exposure, if any, multiplied by the applicable factor referred to in paragraph 3; |
− | (b) | the sum of the following items provided they relate to the same non-performing exposure:(i)specific credit risk adjustments;(ii)additional value adjustments in accordance with Articles 34 and 105;(iii)other own funds reductions;(iv)for institutions calculating risk-weighted exposure amounts …
− | (i) | specific credit risk adjustments; |
− | (ii) | additional value adjustments in accordance with Articles 34 and 105; |
− | (iii) | other own funds reductions; |
− | (iv) | for institutions calculating risk-weighted exposure amounts using the Internal Ratings Based Approach, the absolute value of the amounts deducted pursuant to point (d) of Article 36(1) which relate to non-performing exposures, where the absolute value attributable to each non-performing exp…
− | (v) | where a non-performing exposure is purchased at a price lower than the amount owed by the debtor, the difference between the purchase price and the amount owed by the debtor; |
− | (vi) | amounts written-off by the institution since the exposure was classified as non-performing. |
− | (a) | 0,35 for the unsecured part of a non-performing exposure to be applied during the period between the first and the last day of the third year following its classification as non-performing; |
− | (b) | 1 for the unsecured part of a non-performing exposure to be applied as of the first day of the fourth year following its classification as non-performing. |
− | (a) | 0,25 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the fourth year following its classification as non-performing; |
− | (b) | 0,35 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the fifth year following its classification as non-performing; |
− | (c) | 0,55 for the secured part of a non-performing exposure to be applied during the period between the first and the last day of the sixth year following its classification as non-performing; |
− | (d) | 0,70 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the…
− | (e) | 0,80 for the part of a non-performing exposure secured by other funded or unfunded credit protection pursuant to Title II of Part Three to be applied during the period between the first and the last day of the seventh year following its classification as non-performing; |
− | (f) | 0,80 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the…
− | (g) | 1 for the part of a non-performing exposure secured by other funded or unfunded credit protection pursuant to Title II of Part Three to be applied as of the first day of the eighth year following its classification as non-performing; |
− | (h) | 0,85 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied during the period between the first and the last day of the…
− | (i) | 1 for the part of a non-performing exposure secured by immovable property pursuant to Title II of Part Three or that is a residential loan guaranteed by an eligible protection provider as referred to in Article 201, to be applied as of the first day of the tenth year following its classifica…
− | (a) | 0 for the secured part of the non-performing exposure to be applied during the period between one year and seven years following its classification as non-performing; and |
− | (b) | 1 for the secured part of the non-performing exposure to be applied as of the first day of the eighth year following its classification as non-performing. |
+ (3) in the first subparagraph of Article 111(1), the introductory text is replaced by the following: **‘1.** The exposure value of an asset item shall be its accounting value remaining after specific credit risk adjustments in accordance with Article 110, additional value adjustments in accordance w…
− | (3) | in the first subparagraph of Article 111(1), the introductory text is replaced by the following:‘1. The exposure value of an asset item shall be its accounting value remaining after specific credit risk adjustments in accordance with Article 110, additional value adjustments in accordance wi…
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+ (4) Article 127(1) is replaced by the following: **‘1.** The unsecured part of any item where the obligor has defaulted in accordance with Article 178, or in the case of retail exposures, the unsecured part of any credit facility which has defaulted in accordance with Article 178 shall be assigned a…
− | (4) | Article 127(1) is replaced by the following:‘1. The unsecured part of any item where the obligor has defaulted in accordance with Article 178, or in the case of retail exposures, the unsecured part of any credit facility which has defaulted in accordance with Article 178 shall be assigned a …
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− | (a) | 150 %, where the sum of specific credit risk adjustments and of the amounts deducted in accordance with point (m) Article 36(1) is less than 20 % of the unsecured part of the exposure value if those specific credit risk adjustments and deductions were not applied; |
− | (b) | 100 %, where the sum of the specific credit risk adjustments and of the amounts deducted in accordance with point (m) Article 36(1) is no less than 20 % of the unsecured part of the exposure value if those specific credit risk adjustments and deductions were not applied.’; |
+ (5) Article 159 is replaced by the following: ‘Article 159 Treatment of expected loss amounts Institutions shall subtract the expected loss amounts calculated in accordance with Article 158(5), (6) and (10) from the general and specific credit risk adjustments in accordance with Article 110, additio…
− | (5) | Article 159 is replaced by the following:‘Article 159Treatment of expected loss amountsInstitutions shall subtract the expected loss amounts calculated in accordance with Article 158(5), (6) and (10) from the general and specific credit risk adjustments in accordance with Article 110, additi…
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+ (6) point (b) of Article 178(1) is replaced by the following: ‘(b) the obligor is more than 90 days past due on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. Competent authorities may replace the 90 days with 180 days for exposures secured by r…
− | (6) | point (b) of Article 178(1) is replaced by the following:‘(b)the obligor is more than 90 days past due on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. Competent authorities may replace the 90 days with 180 days for exposures secured by…
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− | ‘(b) | the obligor is more than 90 days past due on any material credit obligation to the institution, the parent undertaking or any of its subsidiaries. Competent authorities may replace the 90 days with 180 days for exposures secured by residential property or SME commercial immovable property i…
+ (7) the following Article is inserted: ‘Article 469a Derogation from deductions from Common Equity Tier 1 items for non-performing exposures By way of derogation from point (m) Article 36(1), institutions shall not deduct from Common Equity Tier 1 items the applicable amount of insufficient coverage…
− | (7) | the following Article is inserted:‘Article 469aDerogation from deductions from Common Equity Tier 1 items for non-performing exposuresBy way of derogation from point (m) Article 36(1), institutions shall not deduct from Common Equity Tier 1 items the applicable amount of insufficient coverag…
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+ ### Article 2
− ### art_2
+ This Regulation shall enter into force on the day following that of its publication in the *Official Journal of the European Union*.
− Article 2
+ This Regulation shall be binding in its entirety and directly applicable in all Member States.
− This Regulation shall enter into force on the day following that of its publication in the Official Journal of the European Union.