Version in force , Modified +43 −85§
Amended by Regulation (EU) 2021/424 32021R0424 on EUR-Lex (external, EUR-Lex)
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Found in the text, but not every source lists it — the text comparison and the EU's own amendment metadata found this change; the amending act's instructions do not mention it. The source that does not name it is the amending act's instructions. All are shown; none is overruled.
Explanation, written by a model and checked against the cited text
Paragraph 1 no longer states that the risk weight for foreign exchange risk factor sensitivities will be specified in the delegated act referred to in Article 461a, and instead sets that risk weight directly at 15%.
Cited: Art. 325av, v1 (external, EUR-Lex) · Art. 325av, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 28 June 2021 02013R0575-20210629 → this version, in force 30 September 2021 02013R0575-20210930
Article 325av
Risk weights for foreign exchange risk
1. Risk A risk weight for of 15 % shall be applied to all sensitivities to of foreign exchange risk factors shall be specified in the delegated act referred to in Article 461a. factors.
2. The risk weight of the foreign exchange risk factors concerning currency pairs which are composed of the euro and the currency of a Member State participating in the second stage of the economic and monetary union (ERM II) shall be one of the following:
(a) the risk weight referred to in paragraph 1, divided by 3;
(b) the maximum fluctuation within the fluctuation band formally agreed by the Member State and the European Central Bank, if that fluctuation band is narrower than the fluctuation band defined under ERM II.
3. Notwithstanding paragraph 2, the risk weight of the foreign exchange risk factors concerning currencies referred to in paragraph 2 which participate in the ERM II with a formally agreed fluctuation band narrower than the standard band of plus or minus 15 % shall equal the maximum percentage fluctuation within that narrower band.
4. The risk weight of the foreign exchange risk factors included in the most liquid currency pairs sub-category as referred to in point (c) of 325bd(7) shall be the risk weight referred to in paragraph 1 of this Article divided by √2.
5. Where the daily exchange-rate data for the preceding three years show that a currency pair composed of euro and a non-euro currency of a Member State is constant and that the institution is always able to face a zero bid/ask spread on the respective trades related to that currency pair, the institution may apply the risk weight referred to in paragraph 1 divided by 2, provided that it has the express permission of its competent authority to do so.