The European Central Bank (ECB) has published the Addendum to the ECB Guide on options and discretions available in Union law. The Addendum sets out the ECB’s approach to the exercise of some options and discretions provided for in the Capital Requirements Regulation (CRR) and the Capital Requirements Directive IV (CRD IV):
- capital waivers (article 7 of the CRR);
- exclusion of intragroup exposures from the calculation of the leverage ratio (article 429(7) of the CRR);
- valuation of assets and off-balance sheet items – use of IFRS for prudential purposes (article 24(2) of the CRR);
- calculation of risk-weighted exposure amounts – intragroup exposures (article 113(6) of the CRR);
- additional collateral outflows from downgrade triggers (article 30(2) of Commission Delegated (EU) 2015/61 supplementing the CRR with regard to liquidity coverage requirement for credit institutions);
- cap on inflows (article 33(2) of Commission Delegated Regulation (EU) 2015/61 supplementing the CRR with regard to liquidity coverage requirement for credit institutions);
- combining the functions of chairman and CEO (article 88(1)(e) of CRD IV); and
- internal capital adequacy assessment process for credit institutions permanently affiliated to a central body (article 108(1) of the CRD IV).
A consolidated version of the ECB Guide on options and discretions available in Union law, including the Addendum and the approach for the recognition of institutional protection schemes, will be published on the ECB’s website later in 2016.
View ECB publishes an Addendum to the Guide on how to harmonise options and discretions in banking supervisions, 10 August 2016
View Addendum to the ECB Guide on options and discretions available in Union law, 10 August 2016
