Adaptations to instructions regarding own funds reporting to ensure greater convergence between banking supervisory authorities

12-14 Rue du Congrès | 1000 Brussels
+32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be Prudential Policy Uniform letter to credit institutions, stockbroking firms, wealth management companies, order execution companies, clearing houses and entities assimilated to clearing houses, and financial companies

CORRESPONDENT OUR REFERENCE YOUR REFERENCE DATE +32 2 220 53 46 PPB/110 September 11, 2007 Lefevre A. policy@cbfa.be

Madam, Sir,

In order to ensure greater convergence in the approach followed by European banking supervisory authorities, the instructions set out in circular PPB-2007-3-CPB of February 22, 2007 concerning own funds reporting have been adapted. These adaptations concern only the instructions relating to the following tables:

90.04 – Credit and counterparty credit risks and incomplete transactions: internal ratings-based approach for own funds requirements
90.05 – Credit risk: equity securities – internal ratings-based approaches for own funds requirements
90.16 – Operational risk

You will find the adapted text of the instructions, including the relevant tables, on the CBFA website (www.cbfa.be – “Credit Institutions” (or “Investment Firms”, or “Clearing and Settlement”, as the case may be) supervision domain, section “Communications / Regulatory Ratios”). The modified passages are clearly indicated there. The tables themselves and the taxonomy remain, at this stage, unchanged. The CBFA awaits, to make any potential modifications, to see how discussions evolve within the CEBS (Committee of European Banking Supervisors).

The new instructions must be applied starting with the reporting concerning the situation as of December 31, 2007. Institutions may, however, already apply these new instructions for their reporting carried out on September 30, 2007.

The CBFA website also includes, under the aforementioned section, as an annex, an adapted version of the validation rules, clearly indicating the modifications made. …/…

12-14 Rue du Congrès | 1000 Brussels
+32 2 220 53 42 | f +32 2 220 54 93 | www.cbfa.be PPB/ 110- 2

A copy of this circular is sent to the commissioner(s), approved auditor(s) of your institution.

We ask you to accept, Madam, Sir, the expression of our distinguished sentiments.

The President,
J.-P. Servais.

Annexes: - General instructions, tables and comments on periodic information to be communicated by institutions concerning compliance with own funds requirements (Pillar 1)

• Validation rules