Article 479
Recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests
1.
By way of derogation from Title II of Part Two, during the period from 1 January 2014 to 31 December 2017, recognition in consolidated own funds of the items that would qualify as consolidated reserves in accordance with national transposition measures for Article 65 of Directive 2006/48/EC that do not qualify as consolidated Common Equity Tier 1 capital for any of the following reasons shall be determined by the competent authorities in accordance with paragraphs 2 and 3 of this Article:
(a)
the instrument does not qualify as a Common Equity Tier 1 instrument, and the related retained earnings and share premium accounts consequently do not qualify as consolidated Common Equity Tier 1 items;
(b)
the items do not qualify as a result of Article 81(2);
(c)
the items do not qualify because the subsidiary is not an institution or an entity that is subject by virtue of applicable national law to the requirements of this Regulation and Directive 2013/36/EU;
(d)
the items do not qualify because the subsidiary is not included fully in the consolidation pursuant to Chapter 2 of Title II of Part One.
2.
The applicable percentage of the items referred to in paragraph 1 that would have qualified as consolidated reserves in accordance with the national transposition measures for Article 65 of Directive 2006/48/EC shall qualify as consolidated Common Equity Tier 1 capital.
3.
For the purposes of paragraph 2, the applicable percentages shall fall within the following ranges:
(a)
0 % to 80 % for the period from 1 January 2014 to 31 December 2014;
(b)
0 % to 60 % for the period from 1 January 2015 to 31 December 2015;
(c)
0 % to 40 % for the period from 1 January 2016 to 31 December 2016;
(d)
0 % to 20 % for the period from 1 January 2017 to 31 December 2017.
4.
Competent authorities shall determine and publish the applicable percentage in the ranges specified in paragraph 3.