Decision No. 2025-C-33 of 16 October 2025 on the implementation of EU Regulation No 575/2013 on prudential requirements for credit institutions and investment firms

PRUDENTIAL CONTROL AND RESOLUTION AUTHORITY

SUPERVISORY COLLEGE DECISION Decision No. 2025-C-33 of 16 October 2025 Implementation of EU Regulation No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation 648/2012

THE SECTORIAL SUB-COLLEGE OF THE BANK

Having regard to the Monetary and Financial Code; Having regard to EU Regulation No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012 (hereinafter the "CRR"); Having regard to EU Regulation 2019/876 of the European Parliament and of the Council of 20 May 2019 amending Regulation (EU) No 575/2013 as regards the leverage ratio, the net stable funding ratio, requirements for own funds and eligible liabilities, counterparty credit risk, market risk, exposures to central counterparties, exposures to collective investment undertakings, large exposures and reporting and disclosure requirements, and amending Regulation (EU) No 648/2012; Having regard to EU Regulation 2024/1623 of the European Parliament and of the Council of 31 May 2024 amending Regulation (EU) No 575/2013 as regards requirements for credit risk, credit valuation adjustment risk, operational risk and market risk and the own funds floor; Having regard to EU Regulation 2019/2033 of the European Parliament and of the Council of 27 November 2019 on prudential requirements applicable to investment firms and amending Regulations (EU) No 1093/2010, (EU) No 575/2013, (EU) No 600/2014 and (EU) No 806/2014; Having regard to Council Regulation (EU) No 1024/2013 of 15 October 2013 conferring specific tasks on the European Central Bank concerning policies relating to the prudential supervision of credit institutions; Having regard to European Central Bank Regulation (EU) No 468/2014 of 16 April 2014 establishing the framework for cooperation within the Single Supervisory Mechanism between the European Central Bank, national competent authorities and designated national authorities (the "SSM Framework Regulation") (ECB/2014/17); Having regard to Commission Delegated Regulation (EU) 2018/171 on the significance threshold for payment arrears; Having regard to ECB Regulation (EU) 2018/1845 on the significance threshold for payment arrears on credit exposures and ECB Guideline on the exercise, by national competent authorities in respect of less significant institutions, of the option under Article 178(2)(d) of Regulation (EU) No 575/2013 of the European Parliament and of the Council concerning the significance threshold for the assessment of payment arrears on credit exposures (ECB/2020/32); Having regard to the Order of 23 December 2013 on the prudential regime for financing companies; Having regard to ECB Regulation (EU) 2016/445 of 14 March 2016 on the exercise of discretions provided for in Union law (ECB/2016/4); Having regard to ECB Guideline (EU) 2017/697 of 4 April 2017 on the exercise of discretions provided for in Union law by national competent authorities in respect of less significant institutions (ECB/2017/9); Having regard to ECB Recommendation of 4 April 2017 on common specifications relating to the exercise of certain discretions provided for in Union law by national competent authorities in respect of less significant institutions (ECB/2017/10); Having regard to ECB Regulation (EU) 2025/1520 of 15 July 2025 amending Regulation (EU) 2016/445 on the exercise of discretions provided for in Union law (ECB/2016/4) (ECB/2025/24); Having regard to ECB Guideline (EU) 2025/1521 of 15 July 2025 amending Guideline (EU) 2017/697 on the exercise of discretions provided for in Union law by national competent authorities in respect of less significant institutions (ECB/2017/9) (ECB/2025/25); Having regard to ECB Recommendation (ECB/2022/13) of 25 March 2022 amending ECB Recommendation (ECB/2017/10) of 4 April 2017 on common specifications relating to the exercise of certain discretions provided for in Union law by national competent authorities in respect of less significant institutions; Having regard to the opinion of the Prudential Affairs Advisory Committee of 1 October 2025;

DECIDES

Article 1: With regard to the prudential requirements applicable respectively to credit institutions that do not fall under the direct supervision of the European Central Bank, financing companies, parent financial holding companies and parent financing companies referred to in Article L. 517-1 of the Monetary and Financial Code, mixed financial holding companies referred to in Article L. 517-4 of the Monetary and Financial Code, parent mixed financing companies referred to in Article L. 517-4-1 of the Monetary and Financial Code and investment firms referred to in Article 2(5) of the CRR (hereinafter "the institutions subject to this decision"), the CRR is implemented on the territory of the French Republic in accordance with the detailed provisions set out in the Annex.

Article 2: This Decision repeals and replaces the amended Decision No. 2022-C-21 of 13 July 2022.

Article 3: This Decision will be published in the official register of the Prudential Control and Resolution Authority.

The Designated President, Denis BEAU

Annex CRR Implementation

89 (3) Without prejudice to Article 90 of Regulation (EU) No 575/2013 and for the calculation of own funds requirements in accordance with Part Three of Regulation (EU) No 575/2013, institutions subject to this decision apply a risk weight of 1250% to the higher of the following amounts: a) the amount of qualifying holdings in undertakings, referred to in Article 89(1) of Regulation (EU) No 575/2013, which exceeds 15% of the eligible own funds of the institution subject to this decision; and b) the total amount of qualifying holdings in undertakings, referred to in Article 89(2) of Regulation (EU) No 575/2013, which exceeds 60% of the eligible own funds of the institution subject to this decision.

138(g) and 495 sexies By way of derogation from Article 138(g), institutions may continue to use a credit assessment established by an External Credit Assessment Institution (ECAI) for an institution that takes into account implicit public sector support assumptions until 1 January 2027.

178 (2) (d) The payment arrears of the debtor on a credit exposure as referred to in Article 178(1)(b) of EU Regulation No 575/2013 are considered significant when the following absolute and relative components are simultaneously exceeded, unless particular circumstances demonstrate that the arrears are due to causes unrelated to the debtor's situation:

• for retail exposures: o The absolute component is 100 euros of arrears; o The relative component is 1% for the ratio [arrears/total exposures];
• for other exposures: o The absolute component is 500 euros of arrears; o The relative component is 1% for the ratio [arrears/total exposures];

327(2) For the application of Article 327, a convertible bond must be considered as a bond when the probability of exercise is very low and as an equity instrument when, due to market conditions, conversion is probable and does not result in losses for the institution. In intermediate cases, it shall be decomposed into an interest rate component and an equity component according to an appropriate method.

400 (2) The exposures referred to in Article 400(2)(k) and (l) of EU Regulation No 575/2013 are fully exempt from the application of Article 395(1) of EU Regulation No 575/2013, subject to the conditions set out in Article 400(3) of EU Regulation No 575/2013. Institutions assess whether the conditions specified in Article 400(3) of Regulation (EU) No 575/2013 are met. The ACPR may verify this assessment at any time.

428 septdecies (10) NSFR 428 quaterquadragies (10) sNSFR Institutions subject to this decision apply to off-balance sheet exposures not mentioned in Chapters 4 and 5 of Title 4 of Part Six of the CRR, stable funding factors that correspond to the runoff rates that institutions apply to these same exposures in the context of Article 23 of Delegated Act No 61/2015 for the liquidity coverage ratio.

428 octodecies (2) NSFR 428 quinquesquadragies (2) sNSFR When assets have been segregated in accordance with Article 11(3) of Regulation (EU) No 648/2012 and cannot be freely transferred, institutions subject to this decision consider these assets as encumbered for a period corresponding to the maturity of the commitments towards their clients to which this segregation obligation relates.

Annex Delegated Regulation (EU) 2015/61 Implementation

12 (1)(c)(i) The following indices constitute significant stock indices for the purpose of determining the extent of shares that could be considered as Level 2B assets under Article 12(1)(c) of Delegated Regulation (EU) 61/2015: (i) The indices listed in Annex I to Implementing Regulation (EU) 1646/2016. (ii) Any significant stock index, not included in point (i), in a Member State or in a third country, identified as such for the purposes of this point by the competent authority of the relevant Member State or by the public authority of the relevant third country. (iii) Any significant stock index, which is not included in points (i) and (ii), composed of leading companies in the country in question.

12 (3) Institutions subject to this decision that, due to their status, are unable for religious reasons to hold interest-bearing assets, may include non-interest-bearing assets issued by companies as Level 2B liquid assets in accordance with the conditions of Article 12(1)(b) of Delegated Regulation (EU) 61/2015 and the ACPR may authorize an exemption from points (ii) and (iii) of this paragraph when the conditions set out in Article 12(3) of said delegated regulation are met. The ACPR periodically reviews the list of assets benefiting from this exemption.