Version in force , Modified +6 −8§
Amended by Regulation (EU) 2019/2033 32019R2033 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2021/558 32021R0558 on EUR-Lex (external, EUR-Lex) · Regulation (EU) 2020/873 32020R0873 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
In Table 1 under Article 397(3), the description of the excess-over-limits basis changed from a percentage of eligible capital to a percentage of Tier 1 capital.
All other text of Article 397, including the numerical bands and the corresponding factors in Column 2, remains the same between the two versions.
Cited: Art. 397, v2 (external, EUR-Lex) · Art. 397, v1 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 28 December 2020 02013R0575-20201228 → this version, in force 28 June 2021 02013R0575-20210629
Article 397
Calculating additional own funds requirements for large exposures in the trading book
1. The excess referred to in Article 395(5)(b) shall be calculated by selecting those components of the total trading exposure to the client or group of connected clients in question which attract the highest specific-risk requirements in Part Three, Title IV, Chapter 2 and/or requirements in Article 299 and Part Three, Title V, the sum of which equals the amount of the excess referred to in point (a) of Article 395(5).
2. Where the excess has not persisted for more than 10 days, the additional capital requirement shall be 200 % of the requirements referred to in paragraph 1, on these components.
3. As from 10 days after the excess has occurred, the components of the excess, selected in accordance with paragraph 1, shall be allocated to the appropriate line in Column 1 of Table 1 in ascending order of specific-risk requirements in Part Three, Title IV, Chapter 2 and/or requirements in Article 299 and Part Three, Title V. The additional own funds requirement shall be equal to the sum of the specific-risk requirements in Part Three, Title IV, Chapter 2 and/or the Article 299 and Part Three, Title V requirements on these components, multiplied by the corresponding factor in Column 2 of Table 1.
Table 1
Column 1: Excess over the limits
(on the basis of a percentage of eligible Tier 1 capital) Column 2: Factors
Up to 40 % 200 %
From 40 % to 60 % 300 %
From 60 % to 80 % 400 %
From 80 % to 100 % 500 %
From 100 % to 250 % 600 %
Over 250 % 900 %