Art. 395

Capital Requirements Regulation · 32013R0575 · every event for this act · on EUR-Lex

Limits to large exposures

7 changes recorded across 7 events, newest first.

in force 2024-07-09 MODIFIED+1,241 −0§

Amended by Regulation (EU) 2024/1623 32024R1623

applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)

dates added to the text: 2027-01-10, 2027-12-31, 2028-12-31

A new paragraph 2a has been inserted requiring EBA, after consulting ESMA, to issue updated guidelines by 10 January 2027 building on the guidelines mentioned in paragraph 2, taking account of shadow banking entities' contribution to the capital markets union and the potential impact of any changes on institutions' business models, risk profiles, and market stability.

The new paragraph also requires EBA, after consulting ESMA, to submit a report to the Commission by 31 December 2027 on shadow banking entities' contribution to the capital markets union and on institutions' exposures to such entities, including the appropriateness of aggregate or tighter individual limits, and requires the Commission, where appropriate and based on that report, to submit a legislative proposal on exposure limits to shadow banking entities to the European Parliament and Council by 31 December 2028.

The rest of the article, including paragraphs 1 and 2 and paragraphs 3 through 8, remains unchanged between the two versions.

Cited: Art. 395, v2 · Art. 395, v1

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02013R0575-20240109 → 02013R0575-20240709

Article 395 Limits to large exposures 1. An institution shall not incur an exposure to a client or group of connected clients the value of which exceeds 25 % of its Tier 1 capital, after taking into account the effect of the … 546 unchanged words … Articles 399 to 403. The Commission shall submit the report to the European Parliament and the Council, together, if appropriate, with a legislative proposal on exposure limits to shadow banking entities which carry out banking activities outside a regulated framework. 2a. By 10 January 2027, EBA, after consulting ESMA, shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010, to update the guidelines referred to in paragraph 2 of this Article. In updating those guidelines, EBA shall take due account, among other considerations, of the contribution of shadow banking entities to the capital markets union, the potential adverse impact that any changes of those guidelines, including additional limits, could have on the business model and risk profile of the institutions and on the stability and the orderly functioning of financial markets. In addition, by 31 December 2027, EBA, after consulting ESMA, shall submit a report to the Commission on the contribution of shadow banking entities to the capital markets union and on institutions’ exposures to such entities, including on the appropriateness of aggregate limits or tighter individual limits to those exposures, while taking due account of the regulatory framework and business models of such entities. By 31 December 2028, the Commission shall, where appropriate, on the basis of that report, submit to the European Parliament and to the Council a legislative proposal on exposure limits to shadow banking entities. 3. Subject to Article 396, an institution shall at all times comply with the relevant limit laid down in paragraph 1. 4. Assets constituting claims and other exposures onto recognised third-country investment firms may be subject to the same treatment as … 950 unchanged words … this case, they shall notify the Commission, the Council, the competent authorities concerned and EBA. Approval of the new measures shall be subject to the process set out in this Article. This Article shall be without prejudice to Article 458.

in force 2023-06-28 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

Sources disagree, and there is no text on either side — the amending act's instructions found this change; the text comparison finds no difference in the provision's text and the EU's own amendment metadata does not list it. All are shown; none is overruled.

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships marked disputed.

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in force 2021-09-30 MODIFIED§

Amended by Regulation (EU) 2021/424 32021R0424

applies from: unchanged

Sources disagree about what is listed, not about the text — the text comparison found this change; the EU's own amendment metadata does not list it and the amending act's instructions do not mention it. All are shown; none is overruled.

The second subparagraph of paragraph 1 replaces references to the institution's eligible capital with references to its Tier 1 capital, and rephrases the surrounding wording slightly, when describing the reasonable limit that applies where the EUR 150 million amount is higher than the percentage-based threshold.

The third subparagraph of paragraph 1 now states that competent authorities inform EBA and the Commission in the case where they set a lower limit than EUR 150 million, rather than stating this as a separate instruction.

A new subparagraph is added to paragraph 1 setting a 15% of Tier 1 capital limit on an exposure by a G-SII to another G-SII or a non-EU G-SII, with compliance tied to a 12-month period running from the date an institution or group came to be identified as a G-SII or non-EU G-SII.

Cited: Art. 395, v1 · Art. 395, v2

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in force 2021-06-28 MODIFIED§

Amended by Regulation (EU) 2019/2033 32019R2033 · Regulation (EU) 2019/876 32019R0876 · Regulation (EU) 2021/558 32021R0558 · Regulation (EU) 2020/873 32020R0873

applies from: unchanged

The exposure limit calculation in paragraph 1 is changed from being based on eligible capital to being based on Tier 1 capital, and the treatment of investment firms as counterparties is added alongside institutions when determining who counts toward the 25% or EUR 150 million threshold.

In paragraph 5, the references to eligible capital for the trading-book excess limits in points (a), (c) and (d) are replaced with references to Tier 1 capital, and point (b) is reworded to refer to the additional own funds requirement on the part of the exposure in excess of the limit rather than on the excess itself.

The closing sentence of paragraph 5 is reworded from describing each case in which the limit has been exceeded to describing each time the limit has been exceeded, while keeping the same reporting obligation to competent authorities.

Cited: Art. 395, v1 · Art. 395, v2

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in force 2020-12-28 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships marked disputed.

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in force 2019-06-27 MODIFIED§

Amended by Regulation (EU) 2019/876 32019R0876

applies from: unknown

No explanation shipped — the structural diff did not see this change, so it carries no text; another signal named the unit and the disagreement ships marked disputed.

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detected 2026-08-13 MODIFIED§

no amending act named

applies from: unknown (the text changed beyond its dates, so no date that moved can be read as the application date)

dates added to the text: 2013-06-28

In paragraph 6, the start date of the period during which competent authorities may require a large exposure limit below 25% but not lower than 15% was changed from 31 December 2014 to 28 June 2013.

Cited: Art. 395, v1 · Art. 395, v2

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