Version in force , Modified +1,241 −0§
Amended by Regulation (EU) 2024/1623 32024R1623 on EUR-Lex (external, EUR-Lex)
dates added to the text: 2027-01-10, 2027-12-31, 2028-12-31
Explanation, written by a model and checked against the cited text
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 (external, EUR-Lex) · Art. 395, 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 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.