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Capital Requirements Regulation (CRR)
Article 428ai

Article 428ai - Derogation for <a class="definition" data-tip="article-4|&lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;‘small and non-complex institution’ means an institution that meets all the following conditions:&lt;/p&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(a) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;it is not a large institution.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(b) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;the total value of its assets on an individual basis or, where applicable, on a consolidated basis in accordance with this Regulation and Directive 2013/36/EU is on average equal to or less than the threshold of EUR 5 billion over the four-year period immediately preceding the current annual reporting period; Member States may lower that threshold.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(c) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;it is not subject to any obligations, or is subject to simplified obligations, in relation to recovery and resolution planning in accordance with Article 4 of Directive 2014/59/EU.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(d) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;its trading book business is classified as small within the meaning of Article 94(1).&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(e) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;the total value of its derivative positions held with trading intent does not exceed 2 % of its total on- and off-balance-sheet assets and the total value of its overall derivative positions does not exceed 5 %, both calculated in accordance with Article 273a(3).&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(f) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;more than 75 % of both the institution&#39;s consolidated total assets and liabilities, excluding in both cases the intragroup exposures, relate to activities with counterparties located in the European Economic Area.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(g) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;the institution does not use internal models to meet the prudential requirements in accordance with this Regulation except for subsidiaries using internal models developed at the group level, provided that the group is subject to the disclosure requirements laid down in Article 433a or 433c on a consolidated basis.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &lt;div class=&#34;list grid-list-column-1&#34;&gt; &lt;span&gt;(h) &lt;/span&gt; &lt;/div&gt; &lt;div class=&#34;grid-list-column-2&#34;&gt; &lt;p class=&#34;norm&#34;&gt;the institution has not communicated to the competent authority an objection to being classified as a small and non-complex institution.&lt;/p&gt; &lt;/div&gt; &lt;/div&gt; &lt;div class=&#34;grid-container grid-list&#34;&gt; &

Status
In force
Selected consolidated version from
30/09/2021
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Article 428ai

Derogation for small and non-complex institutions

By way of derogation from Chapters 3 and 4, small and non-complex institutions may choose, with the prior permission of their competent authority, to calculate the ratio between an institution's available stable funding as referred to in Chapter 6, and the institution's required stable funding as referred to in Chapter 7, expressed as a percentage.

A competent authority may require a small and non-complex institution to comply with the net stable funding requirement based on an institution's available stable funding as referred to in Chapter 3 and the required stable funding as referred to in Chapter 4 where it considers that the simplified methodology is not adequate to capture the funding risks of that institution.



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