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Capital Requirements Regulation (CRR)
Article 428h

Article 428h - Preferential treatment within a group or within an institutional protection scheme

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

Preferential treatment within a group or within an institutional protection scheme

1.  

By way of derogation from Chapters 3 and 4, where Article 428g does not apply, competent authorities may authorise institutions on a case-by-case basis to apply a higher available stable funding factor or a lower required stable funding factor to assets, liabilities and committed credit or liquidity facilities, provided that all the following conditions are met:

(a) 

the counterparty is one of the following:

(i) 

the parent or a subsidiary of the institution;

(ii) 

another subsidiary of the same parent;

(iii) 

an undertaking that is related to the institution within the meaning of Article 22(7) of Directive 2013/34/EU;

(iv) 

a member of the same institutional protection scheme referred to in Article 113(7) of this Regulation as the institution;

(v) 

the central body or an affiliated credit institution of a network or a cooperative group as referred to in Article 10 of this Regulation;

(b) 

there are reasons to expect that the liability or committed credit or liquidity facility received by the institution constitutes a more stable source of funding, or that the asset or committed credit or liquidity facility granted by the institution requires less stable funding over the one-year horizon of the net stable funding ratio than the same liability, asset or committed credit or liquidity facility received or granted by other counterparties;

(c) 

the counterparty applies a required stable funding factor that is equal to or higher than the higher available stable funding factor or applies an available stable funding factor that is equal to or lower than the lower required stable funding factor;

(d) 

the institution and the counterparty are established in the same Member State.

2.  

Where the institution and the counterparty are established in different Member States, competent authorities may waive the condition set out in point (d) of paragraph 1, provided that, in addition to the criteria set out in paragraph 1, the following criteria are met:

(a) 

there are legally binding agreements and commitments between group entities regarding the liability, asset or committed credit or liquidity facility;

(b) 

the funding provider presents a low funding risk profile;

(c) 

the funding risk profile of the recipient of the funding has been adequately taken into account in the liquidity risk management of the funding provider.

The competent authorities shall consult each other in accordance with point (b) of Article 20(1) to determine whether the additional criteria set out in this paragraph are met.



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