On 29 October 2025, the European Commission (Commission) adopted a communication which provides guidance on how banks can benefit from more favourable prudential treatment under the Capital Requirements Regulation (CRR) when investing in equity through legislative programmes – structured public investment schemes established under EU or national law.
Subject to the approval of their national supervisors, banks can apply a 100% risk‑weight to equity exposures incurred under legislative programmes which satisfy the criteria of Article 133(5) of the CRR, up to 10% of their own funds, instead of the normal risk weights for equity exposures – 250% or, where applicable, 400%.
To be eligible, a legislative programme must meet three key conditions:
- Public financial support: The programme must provide significant subsidies or guarantees for the investment for example, through public co‑investment, grants, or risk‑sharing mechanisms. This support can come from the EU, Member States, national promotional banks, or similar public bodies.
- Government oversight: The programme must include some form of public oversight such as transparent selection procedures, monitoring systems, and controls to ensure public resources are used effectively and in line with policy objectives.
- Restrictions on the equity investment: To limit risk, the programme must contain clear restrictions — such as limits on the type, size, or location of eligible investments, or caps on how much ownership a bank can take.
The Commission has published Q&As on legislative programmes under Article 133(5) of the CRR.
The communication also establishes a public register that lists legislative programmes that have been notified to the Commission by Member States or relevant European institutions. It provides transparency for the benefit of banks, supports faster decision‑making by banking competent authorities as well as the consistent implementation of the rules on legislative programmes across the single market.