Version in force , Modified +806 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex)
dates added to the text: 2027-07-10
Explanation, written by a model and checked against the cited text
A new paragraph 6 has been added requiring EBA to develop draft regulatory technical standards specifying the methodology for calculating risk-weighted exposure amounts for dilution risk of purchased receivables, including recognition of credit risk mitigation and conditions for use of own estimates and the fall-back approach, as well as specifying assessment of the immateriality criterion referenced in paragraph 5.
This new paragraph 6 states that EBA shall submit those draft regulatory technical standards to the Commission by 10 July 2027 and delegates power to the Commission to adopt them in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Paragraphs 1 through 5 remain textually identical between the two versions.
Cited: Art. 157, v2 (external, EUR-Lex) · Art. 157, v1 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 9 January 2024 02013R0575-20240109 → this version, in force 9 July 2024 02013R0575-20240709
Article 157 Risk-weighted exposure amounts for dilution risk of purchased receivables 1. Institutions shall calculate the risk-weighted exposure amounts for dilution risk of purchased corporate and retail receivables in accordance with the formula set out in Article 153(1). 2. Institutions shall determine the input parameters PD and LGD in accordance with Section 4. 3. Institutions shall determine the exposure value in accordance with Section 5. 4. For the purposes of this Article, the value of M is 1 year. 5. The competent authorities shall exempt an institution from calculating and recognising risk-weighted exposure amounts for dilution risk of a type of exposures caused by purchased corporate or retail receivables where the institution has demonstrated to the satisfaction of the competent authority that dilution risk for that institution is immaterial for this type of exposures.6. EBA shall develop draft regulatory technical standards to further specify: (a) the methodology for the calculation of risk-weighted exposure amount for dilution risk of purchased receivables, including recognition of credit risk mitigation in accordance with Article 160(4), and the conditions for the use of own estimates and parameters of the fall-back approach; (b) the assessment of the immateriality criterion for the type of exposures referred to in paragraph 5. EBA shall submit those draft regulatory technical standards to the Commission by 10 July 2027. Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.