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Provision history · CRR

Art. 88a · Qualifying eligible liabilities instruments

Capital Requirements Regulation · 32013R0575 · every version of this act · on EUR-Lex (external, EUR-Lex)

1 change recorded across 1 version, newest first.

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Version in force , Inserted +1,239 −0

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)

Applies from: not readable (an inserted provision states its own application date only in prose) why

Explanation, written by a model and checked against the cited text

Article 88a is a newly inserted provision setting out conditions under which liabilities issued by a Union-established subsidiary belonging to the same resolution group as the resolution entity qualify for inclusion in the consolidated eligible liabilities instruments of an institution subject to Article 92a.

It lists three cumulative conditions covering the manner of issuance under Directive 2014/59/EU, the identity and effect of the buyer of the liabilities, and a ceiling on their amount calculated by subtracting a specified sum from a specified required amount.

Cited: Art. 88a, v2 (external, EUR-Lex)

v1 is the previous version, v2 this one.

Text from EUR-Lex

Inserted in this version 02013R0575-20210629

Article 88a
Qualifying eligible liabilities instruments
Liabilities issued by a subsidiary established in the Union that belongs to the same resolution group as the resolution entity shall qualify for inclusion in the consolidated eligible liabilities instruments of an institution subject to Article 92a, provided that all the following conditions are met:
(a) they are issued in accordance with point (a) of Article 45f(2) of Directive 2014/59/EU;
(b) they are bought by an existing shareholder that is not part of the same resolution group as long as the exercise of the write-down or conversion powers in accordance with Articles 59 to 62 of Directive 2014/59/EU does not affect the control of the subsidiary by the resolution entity;
(c) they do not exceed the amount determined by subtracting the amount referred to in point (i) from the amount referred to in point (ii):
(i) the sum of the liabilities issued to and bought by the resolution entity either directly or indirectly through other entities in the same resolution group and the amount of own funds instruments issued in accordance with point (b) of Article 45f(2) of Directive 2014/59/EU;
(ii) the amount required in accordance with Article 45f(1) of Directive 2014/59/EU.