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Capital Requirements Regulation (CRR)
Article 72a

Article 72a - Eligible liabilities items

Status
In force
Selected consolidated version from
30/09/2021
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Article 72a

Eligible liabilities items

1.  

Eligible liabilities items shall consist of the following, unless they fall into any of the categories of excluded liabilities laid down in paragraph 2 of this Article, and to the extent specified in Article 72c:

(a) 

eligible liabilities instruments where the conditions set out in Article 72b are met, to the extent that they do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 items;

(b) 

Tier 2 instruments with a residual maturity of at least one year, to the extent that they do not qualify as Tier 2 items in accordance with Article 64.

2.  

The following liabilities shall be excluded from eligible liabilities items:

(a) 

covered deposits;

(b) 

sight deposits and short term deposits with an original maturity of less than one year;

(c) 

the part of eligible deposits from natural persons and micro, small and medium-sized enterprises which exceeds the coverage level referred to in Article 6 of Directive 2014/49/EU of the European Parliament and of the Council ( 19 );

(d) 

deposits that would be eligible deposits from natural persons, micro, small and medium–sized enterprises if they were not made through branches located outside the Union of institutions established in the Union;

(e) 

secured liabilities, including covered bonds and liabilities in the form of financial instruments used for hedging purposes that form an integral part of the cover pool and that in accordance with national law are secured in a manner similar to covered bonds, provided that all secured assets relating to a covered bond cover pool remain unaffected, segregated and with enough funding and excluding any part of a secured liability or a liability for which collateral has been pledged that exceeds the value of the assets, pledge, lien or collateral against which it is secured;

(f) 

any liability that arises by virtue of the holding of client assets or client money including client assets or client money held on behalf of collective investment undertakings, provided that such a client is protected under the applicable insolvency law;

(g) 

any liability that arises by virtue of a fiduciary relationship between the resolution entity or any of its subsidiaries (as fiduciary) and another person (as beneficiary), provided that such a beneficiary is protected under the applicable insolvency or civil law;

(h) 

liabilities to institutions, excluding liabilities to entities that are part of the same group, with an original maturity of less than seven days;

(i) 

liabilities with a remaining maturity of less than seven days, owed to:

(i) 

systems or system operators designated in accordance with Directive 98/26/EC of the European Parliament and of the Council ( 20 );

(ii) 

participants in a system designated in accordance with Directive 98/26/EC and arising from the participation in such a system; or

(iii) 

third-country CCPs recognised in accordance with Article 25 of Regulation (EU) No 648/2012;

(j) 

a liability to any of the following:

(i) 

an employee in relation to accrued salary, pension benefits or other fixed remuneration, except for the variable component of the remuneration that is not regulated by a collective bargaining agreement, and except for the variable component of the remuneration of material risk takers as referred to in Article 92(2) of Directive 2013/36/EU;

(ii) 

a commercial or trade creditor where the liability arises from the provision to the institution or the parent undertaking of goods or services that are critical to the daily functioning of the institution's or parent undertaking's operations, including IT services, utilities and the rental, servicing and upkeep of premises;

(iii) 

tax and social security authorities, provided that those liabilities are preferred under the applicable law;

(iv) 

deposit guarantee schemes where the liability arises from contributions due in accordance with Directive 2014/49/EU;

(k) 

liabilities arising from derivatives;

(l) 

liabilities arising from debt instruments with embedded derivatives.

For the purposes of point (l) of the first subparagraph, debt instruments containing early redemption options exercisable at the discretion of the issuer or of the holder, and debt instruments with variable interests derived from a broadly used reference rate such as Euribor or Libor, shall not be considered as debt instruments with embedded derivatives solely because of such features.


( 19 ) Directive 2014/49/EU of the European Parliament and of the Council of 16 April 2014 on deposit guarantee schemes (OJ L 173, 12.6.2014, p. 149).

( 20 ) Directive 98/26/EC of the European Parliament and of the Council of 19 May 1998 on settlement finality in payment and securities settlement systems (OJ L 166, 11.6.1998, p. 45).

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