TITLE VII
TRANSITIONAL AND FINAL
PROVISIONS
CHAPTER 1
Transitional provisions
Article 152
1. Credit institutions
calculating risk‑weighted exposure amounts in accordance with
Articles 84 to 89 shall during the first, second and third
twelve‑month periods after 31 December 2006 provide own funds which
are at all times more than or equal to the amounts indicated in
paragraphs 3, 4 and 5.
2. Credit institutions
using the Advanced Measurement Approaches as specified in Article
105 for the calculation of their capital requirements for
operational risk shall, during the second and third twelve‑month
periods after 31 December 2006, provide own funds which are at all
times more than or equal to the amounts indicated in paragraphs 4
and 5.
3. For the first
twelve‑month period referred to in paragraph 1, the amount of own
funds shall be 95 % of the total minimum amount of own funds that
would be required to be held during that period by the credit
institution under Article 4 of Council Directive 93/6/EEC of 15
March 1993 on the capital adequacy of investment firms and credit
institutions (2) as that Directive and Directive 2000/12/EC stood
prior to 1 January 2007.
4. For the second
twelve‑month period referred to in paragraph 1, the amount of own
funds shall be 90 % of the total minimum amount of own funds that
would be required to be held during that period by the credit
institution under Article 4 of Directive 93/6/EEC as that Directive
and Directive 2000/12/EC stood prior to 1 January 2007.
5. For the third
twelve‑month period referred to in paragraph 1, the amount of own
funds shall be 80 % of the total minimum amount of own funds that
would be required to be held during that period by the credit
institution under Article 4 of Directive 93/6/EEC as that Directive
and Directive 2000/12/EC stood prior .to 1 January 2007.
6. Compliance with the
requirements of paragraphs 1 to 5 shall be on the basis of amounts
of own funds fully adjusted to reflect differences in the
calculation of own funds under Directive 2000/12/EC and Directive
93/6/EEC as those Directives stood prior to 1 January 2007 and the
calculation of own funds under this Directive deriving from the
separate treatments of expected loss and unexpected loss under
Articles 84 to 89 of this Directive.
7. For the purposes of
paragraphs 1 to 6 of this Article, Articles 68 to 73 shall apply.
8. Until 1 January 2008
credit institutions may treat the Articles constituting the
Standardised Approach set out in Title V, Chapter 2, Section 3,
Subsection 1 as being replaced by Articles 42 to 46 of Directive
2000/12/EC as those Articles stood prior to 1 January 2007.
9. Where the discretion
referred to in paragraph 8 is exercised, the following shall apply
concerning the provisions of Directive 2000/12/EC:
(a) the provisions of that
Directive referred to in Articles 42 to 46 shall apply as they stood
prior to 1 January 2007;
(b) ‘risk‑adjusted value’ as referred to in Article 42(1) of that
Directive shall mean ‘risk‑weighted exposure amount’
(c) the figures produced by Article 42(2) of that Directive shall be
considered risk‑weighted exposure amounts
(d) ‘credit derivatives’
shall be included in the list of ‘Full risk’ items in Annex II of
that Directive; and
(e) the treatment set out
in Article 43(3) of that Directive shall apply to derivative
instruments listed in Annex IV of that Directive whether on‑ or
off‑balance sheet and the figures produced by the treatment set out
in Annex III shall be considered risk‑weighted exposure amounts.
10. Where the discretion
referred to in paragraph 8 is exercised, the following shall apply
in relation to the treatment of exposures for which the Standardised
Approach is used:
(a) Title V, Chapter 2,
Section 3, Subsection 3 relating to the recognition of credit risk
mitigation shall not apply;
(b) Title V, Chapter 2,
Section 3, Subsection 4 concerning the treatment of securitisation
may be disapplied by competent authorities.
11. Where the discretion
referred to in paragraph 8 is exercised, the capital requirement for
operational risk under Article 75(d) shall be reduced by the
percentage representing the ratio of the value of the credit
institution's exposures for which risk‑weighted exposure amounts are
calculated in accordance with the discretion referred to in
paragraph 8 to the total value of its exposures.
12. Where a credit
institution calculates risk‑weighted exposure amounts for all of its
exposures in accordance with the discretion referred to in paragraph
8, Articles 48 to 50 of Directive 2000/12/EC relating to large
exposures may apply as they stood prior to 1 January 2007.
13. Where the discretion
referred to in paragraph 8 is exercised, references to Articles 78
to 83 of this Directive shall be read as references to Articles 42
to 46 of Directive 2000/12/EC as those Articles stood prior to 1
January 2007.
14. If the discretion
referred to in paragraph 8 is exercised, Articles 123, 124, 145 and
149 shall not apply before the date referred to therein.
Article 153
In the calculation of
risk‑weighted exposure amounts for exposures arising from property
leasing transactions concerning offices or other commercial premises
situated in their territory and meeting the criteria set out in
Annex VI, Part 1, point 54, the competent authorities may, until 31
December 2012 allow a 50 % risk weight to be assigned without the
application of Annex VI, Part 1, points 55 and 56.
Until 31 December 2010,
competent authorities may, for the purpose of defining the secured
portion of a past due loan for the purposes of Annex VI, recognise
collateral other than eligible collateral as set out under Articles
90 to 93.
In the calculation of risk
weighted exposure amounts for the purposes of Annex VI, Part 1,
point 4, until 31 December 2012 the same risk weight shall be
assigned in relation to exposures to Member States' central
governments or central banks denominated and funded in the domestic
currency of any Member State as would be applied to such exposures
denominated and funded in their domestic currency.
Article 154
1. Until 31 December 2011,
the competent authorities of each Member State may, for the purposes
of Annex VI, Part 1, point 61, set the number of days past due up to
a figure of 180 for exposures indicated in Annex VI, Part 1, points
12 to 17 and 41 to 43, to counterparties situated in their
territory, if local conditions make it appropriate.
The specific number may differ across product lines. Competent
authorities which do not exercise the discretion provided for in the
first subparagraph in relation to exposures to counterparties
situated in their territory may set a higher number of days for
exposures to counterparties situated in the territories of other
Member States, the competent authorities of which have exercised
that discretion.
The specific number shall fall within 90 days and such figures as
the other competent authorities have set for exposures to such
counterparties within their territory.
2. For credit institutions
applying for the use of the IRB Approach before 2010, subject to the
approval of the competent authorities, the three‑years' use
requirement prescribed in Article 84(3) may be reduced to a period
no shorter than one year until 31 December 2009.
3. For credit institutions
applying for the use of own estimates of LGDs and/or conversion
factors, the three year use requirement prescribed in Article 84(4)
may be reduced to two years until 31 December 2008.
4. Until 31 December 2012,
the competent authorities of each Member State may allow credit
institutions to continue to apply to participations of the type set
out in Article 57(o) acquired before 20 July 2006 the treatment set
out in Article 38 of Directive 2000/12/EC as that article stood
prior to 1 January 2007.
5. Until 31 December 2010
the exposure weighted average LGD for all retail exposures secured
by residential properties and not benefiting from guarantees from
central governments shall not be lower than 10 %.
6. Until 31 December 2017,
the competent authorities of the Member States may exempt from the
IRB treatment certain equity exposures held by credit institutions
and EU subsidiaries of credit institutions in that Member State at
31 December 2007.
The exempted position shall
be measured as the number of shares as of 31 December 2007 and any
additional share arising directly as a result of owning those
holdings, as long as they do not increase the proportional share of
ownership in a portfolio company.
If an acquisition increases
the proportional share of ownership in a specific holding the
exceeding Part of the holding shall not be subject to the exemption.
Nor shall the exemption apply to holdings that were originally
subject to the exemption, but have been sold and then bought back.
Equity exposures covered by
this transitional provision shall be subject to the capital
requirements calculated in accordance with Title V, Chapter 2,
Section 3, Subsection 1.
7. Until 31 December 2011, for corporate exposures, the competent
authorities of each Member State may set the number of days past due
that all credit institutions in its jurisdiction shall abide by
under the definition of ‘default’ set out in Annex VII, Part 4,
point 44 for exposures to such counterparts situated within this
Member State.
The specific number shall fall within 90‑ up to a figure of 180 days
if local conditions make it appropriate.
For exposures to such
counterparts situated in the territories of other Member States, the
competent authorities shall set a number of days past due which is
not higher than the number set by the competent authority of the
respective Member State.
Article 155
Until 31 December 2012, for credit institutions the relevant
indicator for the trading and sales business line of which
represents at least 50 % of the total of the relevant indicators for
all of its business lines accordance with Annex X, Part 2, points 1
to 4, Member States may apply a percentage of 15 % to the business
line ‘trading and sales’
CHAPTER 2
Final provisions
Article 156
The Commission, in
cooperation with Member States, and taking into account the
contribution of the European Central Bank, shall periodically
monitor whether this Directive taken as a whole, together with
Directive 2006/49/EC, has significant effects on the economic cycle
and, in the light of that examination, shall consider whether any
remedial measures are justified.
Based on that analysis and
taking into account the contribution of the European Central Bank,
the Commission shall draw up a biennial report and submit it to the
European Parliament and to the Council, together with any
appropriate proposals. Contributions from credit taking and credit
lending parties shall be adequately acknowledged when the report is
drawn up.
By 1 January 2012 the
Commission shall, review and report on the application of this
Directive with particular attention to all aspects of Articles 68 to
73, 80(7), 80(8) and 129, and shall submit this report to the
Parliament and the Council together with any appropriate proposals.
Article 157
1. By 31 December 2006
Member States shall adopt and publish the laws, regulations and
administrative provisions necessary to comply with Articles 4, 22,
57, 61 to 64, 66, 68 to 106, 108, 110 to 115, 117 to 119, 123 to
127, 129 to 132, 133, 136, 144 to 149 and 152 to 155, and Annexes
II, III and V to XII.
They shall forthwith
communicate to the Commission the text of those provisions and a
correlation table between those provisions and this Directive.
Notwithstanding paragraph
3, Member States shall apply those provisions from 1 January 2007.
When Member States adopt
those provisions, they shall contain a reference to this Directive
or be accompanied by such a reference on the occasion of their
official publication. They shall also include a statement that
references in existing laws, regulations and administrative
provisions to the directives repealed by this Directive shall be
construed as references to this Directive.
Member States shall
determine how such reference is to be made and how that statement is
to be formulated.
2. Member States shall
communicate to the Commission the text of the main provisions of
national law which they adopt in the field covered by this
Directive.
3. Member States shall
apply, from 1 January 2008, and no earlier, the laws regulations and
administrative provisions necessary to comply with Articles 87(9)
and 105.
Article 158
1. Directive 2000/12/EC as
amended by the Directives set out in Annex XIII, Part A, is hereby
repealed without prejudice to the obligations of the Member States
concerning the deadlines for transposition of the said Directives
listed in Annex XIII, Part B.
2. References to the
repealed Directives shall be construed as being made to this
Directive and should be read in accordance with the correlation
table in Annex XIV.
Article 159
This Directive shall enter
into force on the 20th day following its publication in the
Official Journal of the European Union.
Article 160
This Directive is addressed
to the Member States.
Done at Strasbourg, 14 June
2006.
For the European Parliament
The President
J. BORRELL FONTELLES
The President
For the Council
H. WINKLER
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