RegAlert2021-01-15 | 2021_NBB_02Added · Updated
Circular of the Resolution College of the National Bank of Belgium regarding the granting of authorization for the reduction of eligible commitment instruments
The Resolution College of the National Bank of Belgium establishes the conditions and procedures for Belgian credit institutions and investment firms to obtain prior authorization to redeem or repurchase eligible commitment instruments before their contractual maturity. The circular specifies that applications must be submitted at least four months in advance and require detailed information on capital requirements, MREL compliance, and risk assessments. It defines three substantive conditions for ad hoc authorization, including replacement with equal or higher quality instruments, demonstration of excess capital buffers, or necessity for regulatory compliance, and outlines a general authorization mechanism capped at 3% of eligible instruments with a maximum duration of one year. The document mandates coordination with the competent authority and specifies that eligible amounts are deducted from commitments upon obtaining sufficient assurance of the operation.
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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 of 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 575/20131 ("CRR"), introduced by Article 1, paragraph 38, of Regulation (EU) No 2019/8762, the resolution authority may authorize in advance establishments under its competence to redeem or repurchase eligible commitment instruments before their contractual maturity date. In this circular, the resolution authority specifies the conditions and application procedure, including deadlines 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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