RegAlert2021-01-15 | 2021_NBB_02Added
Circular from the Resolution College of the National Bank of Belgium regarding the granting of authorization for the reduction of eligible commitment instruments
Establishments subject to the Belgian Resolution College's competence must obtain prior authorization to redeem or repurchase eligible commitment instruments before their contractual maturity. The authorization is granted only if specific conditions are met, such as replacing instruments with equal or higher quality equity or eligible commitments, demonstrating that post-operation eligible own funds and liabilities exceed regulatory requirements by a necessary margin, or proving that replacement is necessary to maintain authorization. Applications require detailed information on legal basis, financial impact, risk exposure, and instrument specifics, submitted at least four months before communicating with holders. General prior authorizations are limited to a maximum of 3% of the total outstanding amount of eligible commitment instruments and are valid for a determined period not exceeding one year.
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NBB_2021_02 – 15 January 2021 Circular – Page 1/6 boulevard de Berlaimont 14 – BE-1000 Brussels tel. +32 2 221 34 35 company number: 0203.201.340 RPM Brussels www.bnb.be
Circular
Brussels, 15 January 2021
Reference: NBB_2021_02 your contact:
Bujar Behramaj tel. +32 2 221 34 35
Bujar.behramaj@nbb.be
Circular from the Resolution College of the National Bank of Belgium regarding the granting of authorization for the reduction of eligible commitment instruments
Summary/Objectives
Pursuant to Article 78bis of Regulation (EU) No 575/2013 1 ("CRR"), introduced by Article 1, paragraph 38, of Regulation (EU) No 2019/876 2, the resolution authority may authorize in advance establishments under its competence to repay or repurchase eligible commitment instruments before their contractual maturity date. In this circular, the resolution authority specifies the conditions and application procedure, including time limits and information requirements.
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Lineage: In force
Source: National Bank of Belgium — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works
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