Version in force , Modified +569 −1,054§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2987 32024R2987 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2024/2795 32024R2795 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
The heading and substance of Article 128 changed from covering 'Items associated with particular high risk', including venture capital, private equity and speculative immovable property financing with a 150% risk weight and EBA guidance provisions, to a new heading 'Subordinated debt exposures' defining subordinated debt exposures as debt subordinated to ordinary unsecured creditors, certain own funds instruments, and holdings of eligible liabilities instruments meeting Article 72b conditions.
The 150% risk weight assignment is retained in the after text but is now applied specifically to subordinated debt exposures, with an exception where those exposures are deducted from own funds or subject to the treatment in Article 72e(5), first subparagraph, whereas the before text applied the 150% weight to exposures associated with particularly high risk generally and included a separate paragraph 3 on risk characteristics and EBA guidelines that no longer appears.
Cited: Art. 128, v1 (external, EUR-Lex) · Art. 128, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
texts differ too much for an inline diff; shown separately
Previous version, in force 9 July 2024 02013R0575-20240709
Article 128 Items associated with particular high risk 1. Institutions shall assign a 150 % risk weight to exposures that are associated with particularly high risks. 2. For the purposes of this Article, institutions shall treat any of the following exposures as exposures associated with particularly high risks: (a) investments in venture capital firms, except where those investments are treated in accordance with Article 132; (b) investments in private equity, except where those investments are treated in accordance with Article 132; (c) speculative immovable property financing. 3. When assessing whether an exposure other than exposures referred to in paragraph 2 is associated with particularly high risks, institutions shall take into account the following risk characteristics: (a) there is a high risk of loss as a result of a default of the obligor; (b) it is impossible to assess adequately whether the exposure falls under point (a). EBA shall issue guidelines specifying which types of exposures are associated with particularly high risk and under which circumstances. Those guidelines shall be adopted in accordance with Article 16 of Regulation (EU) No 1093/2010.
this version, in force 1 January 2025 02013R0575-20250101
Article 128 Subordinated debt exposures 1. The following exposures shall be treated as subordinated debt exposures: (a) debt exposures which are subordinated to claims of ordinary unsecured creditors; (b) own funds instruments to the extent that those instruments are not considered to be equity exposures in accordance with Article 133(1); and (c) exposures arising from the institution’s holding of eligible liabilities instruments that meet the conditions set out in Article 72b. 2. Subordinated debt exposures shall be assigned a risk weight of 150 %, unless those subordinated debt exposures are deducted from own funds or subject to the treatment set out in Article 72e(5), first subparagraph.