Version in force , Modified +169 −124§
Amended by Regulation (EU) 2019/876 32019R0876 on EUR-Lex (external, EUR-Lex)
Explanation, written by a model and checked against the cited text
The heading and paragraph 1 now refer to eligible liabilities in addition to own funds, extending the scope from capital instruments or subordinated loans qualifying as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments to liabilities qualifying as own funds instruments in a financial sector entity or as eligible liabilities instruments in an institution.
The condition for the competent authority's assessment changed from deeming those holdings to be for a financial assistance operation designed to reorganise and save the entity, to considering those holdings to be for a financial assistance operation designed to reorganise and restore the viability of that entity or institution.
Cited: Art. 79, v1 (external, EUR-Lex) · Art. 79, v2 (external, EUR-Lex)
v1 is the previous version, v2 this one.
Text from EUR-Lex, before and after
Previous version, in force 26 April 2019 02013R0575-20190426 → this version, in force 27 June 2019 02013R0575-20190627
Article 79
Temporary waiver of from deduction from own funds
and eligible liabilities
1. Where an institution holds capital instruments or has granted subordinated loans, as applicable, liabilities that qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 own funds instruments in a financial sector entity temporarily or as eligible liabilities instruments in an institution and where the competent authority deems considers those holdings to be for the purposes of a financial assistance operation designed to reorganise and save restore the viability of that entity, entity or that institution, the competent authority may waive on a temporary basis the provisions on deduction that would otherwise apply to those instruments.
2. EBA shall develop draft regulatory technical standards to specify the concept of temporary for the purposes of paragraph 1 and the conditions according to which a competent authority may deem those temporary holdings to be for the purposes of a financial assistance operation designed to reorganise and save a relevant entity.
EBA shall submit those draft regulatory technical standards to the Commission by 28 July 2013.
Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.