Regulations and Guidelines related to the Capital Requirements Regulation

Regulations and guidelines 5/2019 (pdf)

Regulations and Guidelines related to the Capital Requirements Regulation

  • valid from 1 September 2019

Ylitysilmoituslomake suurten asiakasriskien ylitysraportointiin (in Finnish)

 

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Guidelines of the European Central Bank on the exercise of options and discretion allowed by the Union

Guidelines of the European Central Bank on the exercise of options and discretion allowed by the Union

The European Central Bank (ECB), as the supervisor of important credit institutions, has issued a Regulation[1] providing on the exercise of options and discretion regarding significant credit institutions. The Regulation is binding on significant credit institutions and it entered into force on 1 January 2016.

The ECB has, in line with the principle of proportionality, identified certain options and discretions that should also be applied to less significant credit institutions. A Guideline[2] published by the ECB lays down how national competent authorities should apply, in relation to less significant institutions, the possibility to exercise options of general application which should be fully aligned in terms of principles concerning all banks supervised within the scope of the Single Supervisory Mechanism. The Guidelines are legally binding on national competent authorities.

The Financial Supervisory Authority is a national competent authority referred to in the ECB Guidelines, and it has applied the ECB Guidelines as of 1 January 2018.

Since Finland has implemented the option referred to in Article 493 of the CRR to exempt certain exposures fully or partly from the quantitative restrictions concerning large exposures, Article 9 of the ECB Guide or Article 6 of the ECB Guidelines do not directly apply to Finnish credit institutions. Quantitative restrictions concerning exceptionally large exposures are provided in a Decree of the Ministry of Finance on exemptions applying to large exposures of credit institutions, investment firms and financial and insurance conglomerates. Furthermore, the Credit Institutions Act provides on exceptions to the limitations, where so-called intragroup items are concerned.

Recommendations of the European Central Bank on the use of options and discretion allowed by the Union

The ECB has issued a Guide[3] on options and discretions allowed by law regarding such cases involving discretion, which require a case-by-case permission from the competent authority.

In order to ensure a level playing field and a consistent supervisory approach for credit institutions, the ECB has issued a Recommendation[4] to national competent authority on how they should apply their discretionary power to less significant credit institutions. The Recommendation is not legally binding. Its purpose is to harmonise the use of options and discretions in cases that are not of a general application and therefore require case-by-case consideration. The Recommendation also provides guidelines for national supervisory authorities for case-by-case assessment.


The FIN-FSA applies the abovementioned ECB recommendations in considering applications for permission by individual less-significant credit institutions.


[1] REGULATION (EU) 2016/445 OF THE EUROPEAN CENTRAL BANK of 14 March 2016 on the exercise of options and discretions available in Union law (ECB/2016/4)
[2] GUIDELINE (EU) 2017/697 OF THE EUROPEAN CENTRAL BANK of 4 April 2017 on the exercise of options and discretions available in Union law by national competent authorities in relation to less significant institutions (ECB/2017/9)
[3] ECB Guide on options and discretions available in Union law, November 2016.
[4] RECOMMENDATION OF THE EUROPEAN CENTRAL BANK of 4 April 2017 on common specifications for the exercise of some options and discretions available in Union law by national competent authorities in relation to less significant institutions

(ECB/2017/10)

EBA guidelines with different language versions

EBA guidelines with different language versions

  • Guidelines on the application of the definition of default under Article 178 of Regulation (EU) No 575/2013 (EBA/GL/2016/07
  • Guidelines on specification of types of exposures to be associated with high risk under Article 128(3) of Regulation (EU) No 575/2013 (EBA/GL/2019/01)
  • Guidelines on PD estimation, LGD estimation and the treatment of defaulted exposures (EBA/GL/2017/16).
  • Guidelines for the estimation of LGD appropriate for an economic downturn (‘Downturn LGD estimation’) (EBA/GL/2019/03)
  • Guidelines on Stressed Value At Risk (Stressed VaR)  (EBA/GL/2012/2)
  • Guidelines on Incremental Default and Migration Risk Charge (IRC) (EBA/GL/2012/3)
  • Guidelines on on corrections to modified duration for debt instruments under the second subparagraph of Article 340(3) of Regulation (EU) 575/2013 (EBA/GL/2016/09).
  • Guidelines  on Significant Credit Risk Transfer relating to Articles 243 and Article 244 of Regulation 575/2013 (EBA/GL/2014/05)
  • Guidelines on implicit support for securitisation transactions (EBA/GL/2016/08)
  • Guidelines on Limits on exposures to shadow banking entities which carry out banking activities outside a regulated framework under Article 395(2) of Regulation (EU) No 575/2013 (EBA/GL/2015/20)
  • Guidelines on connected clients under Article 4(1)(39) of Regulation (EU) No 575/2013 (EBA/GL/2017/15)
  • Guidelines on on materiality, proprietary and confidentiality and on disclosure frequency under Articles 432(1), 432(2) and 433 of Regulation (EU) No 575/2013 (EBA/GL/2014/14)
  • Guidelines on disclosure of encumbered and unencumbered assets (EBA/GL/2014/03)
  • Guidelines on disclosure requirements under Part Eight of Regulation (EU) No 575/2013 (EBA/GL/2016/11)
  • Guidelines on LCR disclosure to complement the disclosure of liquidity risk management under Article 435 of Regulation (EU) No 575/2013 (EBA/GL/2017/01)
  • Guidelines on uniform disclosures under Article 473a of Regulation (EU) No 575/2013 as regards transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds (EBA/GL/2018/01)
  • Guidelines on disclosure of non-performing and forborne exposures (EBA/GL/2018/10)
European Union regulation
  • REGULATION (EU) No 575/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012

  • COUNCIL REGULATION (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions

  • REGULATION (EU) No 1093/2010 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 24 November 2010 establishing a European Supervisory Authority (European Banking Authority), amending Decision No 716/2009/EC and repealing Commission Decision 2009/78/EC

  • COMMISSION IMPLEMENTING REGULATION (EU) 2016/1646 of 13 September 2016 laying down implementing technical standards with regard to main indices and recognised exchanges in accordance with Regulation (EU) No 575/2013 of the European Parliament and of the Council on prudential requirements for credit institutions and investment firms

  • COMMISSION DELEGATED REGULATION (EU) No 241/2014 of 7 January 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for Own Funds requirements for institutions

  • COMMISSION DELEGATED REGULATION (EU) 2018/171 of 19 October 2017 on supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards for the materiality threshold for credit obligations past due

  • Commission Delegated Regulation (EU) No 1187/2014 of 2 October 2014 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council as regards regulatory technical standards for determining the overall exposure to a client or a group of connected clients in respect of transactions with underlying assets

  • COMMISSION DELEGATED REGULATION (EU) 2018/959 of 14 March 2018 supplementing Regulation (EU) No 575/2013 of the European Parliament and of the Council with regard to regulatory technical standards of the specification of the assessment methodology under which competent authorities permit institutions to use Advanced Measurement Approaches for operational risk

  • COMMISSION DELEGATED REGULATION (EU) 2015/61 of 10 October 2014 to supplement Regulation (EU) No 575/2013 of the European Parliament and the Council with regard to liquidity coverage requirement for Credit Institutions

FIN-FSA regulations and guidelines