Article 9 | Delegated Regulation 2026/1167

Article 9 - Delegated Regulation 2026/1167

Article 9

Calculation of the financial component

When calculating the financial component referred to in Article 314(6) of Regulation (EU) No 575/2013, institutions shall use one of the following approaches:

(a)	the ‘accounting approach’ under which they calculate the financial component in accordance with Articles 10 and 11 of this Regulation on the basis of the applicable accounting framework;

(b)

the ‘prudential boundary approach’ under which they calculate the financial component in accordance with Article 12 of this Regulation on the basis of the prudential boundary set out in Part Three, Title I, Chapter 3, of Regulation (EU) No 575/2013, provided that all of the following conditions are met:

(i)

certain types of operations performed, or accounting choices adopted, including the economic hedging of fair value through profit and loss positions or the bifurcation of derivatives embedded in host hybrid or in structured financial instruments, result in an unwarranted increase of the financial component when using the accounting approach;

(ii)

the institution has in place policies, procedures, systems and controls to:

(1)	identify the profit and loss of hedged instruments and related hedges, connecting those related hedges to the hedged risks;

(2)	properly calculate the profits and losses of the prudential trading book and the prudential non-trading book;

(iii)

the internal policies, procedures, systems and controls allow for documenting the hedging relationship and its changes over time based on risk management objectives and choices;

(iv)	the adjustments to the financial component are restricted to the amount of profit and loss related to risks effectively covered by the hedge and materially offsetting the accounting profit and loss of the hedged items.

PART I - COMPONENTS OF THE BUSINESS INDICATOR, ELEMENTS TO BE EXCLUDED FROM THAT INDICATOR, AND ADJUSTMENTS TO THAT INDICATOR (Article 1-22)

TITLE I - COMPONENTS OF THE BUSINESS INDICATOR (Article 1-15)

CHAPTER 1 - Interest, leases and dividend component (Article 1-4)Article 1 - Interest income ITS Article 2 - Interest expenses ITS Article 3 - Asset component ITS Article 4 - Dividend component ITS

CHAPTER 2 - Services component (Article 5-8)Article 5 - Other operating income ITS Article 6 - Other operating expenses ITS Article 7 - Fee and commission income component ITS Article 8 - Fee and commission expenses component ITS

CHAPTER 3 - Financial component (Article 9-15)Article 9 - Calculation of the financial component

Section 1 - Calculation of the financial component in accordance with the accounting approach (Article 10-11)Article 10 - Trading book component ITS Article 11 - Banking book component ITS

Section 2 - Calculation of the financial component in accordance with the prudential boundary approach (Article 12-15)Article 12 - Prudential boundary approach Article 13 - Notification procedure for the use of the prudential boundary approach Article 14 - Reversal to the accounting approach Article 15 - Notification procedure for the reversal to the accounting approach

TITLE II - ELEMENTS TO BE EXCLUDED FROM THE BUSINESS INDICATOR (Article 16)Article 16 - Scope of the exclusions from the business indicator

TITLE III - ADJUSTMENTS TO THE BUSINESS INDICATOR (Article 17-22)Article 17 - Calculation of the adjustments to the business indicator in case of mergers and acquisitions Article 18 - Timing for the adjustments to the business indicator following mergers and acquisitions Article 19 - Procedure for granting permission to exclude from the business indicator those amounts that are related to disposed entities or activities Article 20 - Procedure for granting permission to exclude from the business indicator amounts related to disposed entities or activities where the impact of the divestments is low Article 21 - Calculation of the business indicator adjustment in case of disposals Article 22 - Timing for business indicator adjustments in case of disposal

PART III - FINAL PROVISIONS (Article 40)Article 40 - Entry into force

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Article 9 - Delegated Regulation 2026/1167

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