Amendments to regulations and guidelines 5/2019 related to the Capital Requirements Regulation
The FIN-FSA has made amendments to regulations and guidelines 5/2019 related to the EU Capital Requirements Regulation (CRR).
The amendments implement the updates issued by the ECB on 25 March 2022 to its Guideline on the exercise of options and discretions available in Union law by national competent authorities in relation to less significant institutions. The updates are mainly related to requirements concerning liquidity risk.
On 25 March 2022, the ECB also issued updates to the Recommendation on common specifications for the exercise of some options and discretions available in Union law by national competent authorities in relation to less significant institutions. The FIN-FSA applies the abovementioned ECB Recommendations in considering applications for authorisation by individual LSIs.
In addition, three Guidelines of the European Banking Authority (EBA) are incorporated into the FIN-FSA set of regulations and guidelines. The FIN-FSA has already notified the EBA it will comply with these Guidelines.
- Guidelines on criteria for the use of data inputs in the risk-measurement model referred to in Article 325bc of Regulation (EU) No 575/2013 (EBA/GL/2021/07)
- Guidelines specifying the conditions for the application of the alternative treatment of institutions’ exposures related to ‘tri-party repurchase agreements’ set out in Article 403(3) of Regulation (EU) 575/2013 for large exposures purposes (EBA/GL/2021/01)
- Guidelines specifying the criteria to assess the exceptional cases when institutions exceed the large exposure limits of Article 395(1) of Regulation (EU) No 575/2013 and the time and measures to return to compliance pursuant to Article 396(3) of Regulation (EU) No 575/2013 (EBA/GL/2021/09) .
Furthermore, technical clarifications have been made to the regulations and guidelines. Among other things, obsolete transitional provisions were removed from the section on Own funds, and the content of the section was regrouped. As regards regulations issued by virtue of authority based on the CRR, references to the FIN-FSA’s national regulatory powers have also been added.
The amendments to the regulations and guidelines are applicable as of 1 October 2022.
For further information, please contact
Taina Erovaara-Williams, Senior Regulatory Expert, telephone +358 9 183 5422 or taina.erovaara-williams(at)fiva.fi