(23)

Article 78 is amended as follows: the title is replaced by the following: ‘Supervisory benchmarking of approaches for calculating own funds requirements’ ; paragraph 1 is replaced by the following: ‘1. Competent authorities shall ensure all of the following: Institutions shall submit the results of the calculations referred to in the first subparagraph together with an explanation of the methodologies used to produce them and any qualitative information, as requested by EBA, that can explain the impact of those calculations on own funds requirements. Those results shall be submitted at least annually to the competent authorities. EBA may conduct a supervisory benchmarking exercise every two years for each approach referred to in the first subparagraph after that exercise has run five times for each single approach. (*18) Council Directive 86/635/EEC of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions (OJ L 372, 31.12.1986, p. 1).’;" that institutions permitted to use internal approaches for the calculation of risk-weighted exposure amounts or own funds requirements report the results of their calculations for their exposures or positions that are included in the benchmark portfolios; that institutions using the alternative standardised approach set out in Part Three, Title IV, Chapter 1a, of Regulation (EU) No 575/2013 report the results of their calculations for their exposures or positions that are included in the benchmark portfolios, provided that the size of the institutions’ on- and off-balance-sheet business that is subject to market risk is equal to or greater than EUR 500 million in accordance with Article 325a(1), point (b), of that Regulation; that institutions permitted to use internal approaches under Part Three, Title II, Chapter 3, of Regulation (EU) No 575/2013, as well as relevant institutions that apply the standardised approach under Part Three, Title II, Chapter 2, of that Regulation, report the results of the calculations of the approaches used for the purpose of determining the amount of expected credit losses for their exposures or positions that are included in the benchmark portfolios, where any of the following conditions is met: institutions prepare their accounts in conformity with international accounting standards as applied in accordance with Regulation (EC) No 1606/2002; institutions undertake the valuation of assets and off-balance-sheet items and the determination of their own funds in conformity with international accounting standards pursuant to Article 24(2) of Regulation (EU) No 575/2013; institutions undertake the valuation of assets and off-balance-sheet items in conformity with accounting standards under Council Directive 86/635/EEC (*18) and use an expected credit loss model that is the same as the one used in international accounting standards as applied in accordance with Regulation (EC) No 1606/2002. paragraph 3 is amended as follows: the introductory wording is replaced by the following: ‘Competent authorities shall, on the basis of the information submitted by institutions in accordance with paragraph 1, monitor the range of risk-weighted exposure amounts or own funds requirements, as applicable, for the exposures or transactions in the benchmark portfolio resulting from the approaches of those institutions. Competent authorities shall make an assessment of the quality of those approaches with at least the same frequency as the EBA exercise referred to in paragraph 1, second subparagraph, paying particular attention to:’ ; point (b) is replaced by the following: ; approaches where there is particularly high or low variability, and also where there is a significant and systematic under-estimation of own funds requirements.’ the second subparagraph is replaced by the following: ‘EBA shall produce a report to assist the competent authorities in the assessment of the quality of the approaches based on the information referred to in paragraph 2.’ ; in paragraph 5, the introductory wording is replaced by the following: ‘The competent authorities shall ensure that their decisions on the appropriateness of corrective actions, as referred to in paragraph 4, comply with the principle that such actions must maintain the objectives of the approaches within the scope of this Article and therefore do not:’ ; paragraph 6 is replaced by the following: ‘6. EBA may issue guidelines and recommendations in accordance with Article 16 of Regulation (EU) No 1093/2010 where it considers them necessary on the basis of the information and assessments referred to in paragraphs 2 and 3 of this Article in order to improve supervisory practices or practices of institutions with regard to the approaches within the scope of the supervisory benchmarking.’ ; paragraph 8 is amended as follows: in the first subparagraph, the following point is added: ; the list of relevant institutions referred to in paragraph 1, point (c).’ the following subparagraph is inserted after the first subparagraph: ‘For the purposes of point (c), when determining the list of relevant institutions, EBA shall take into account proportionality considerations.’ ;

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.