Notice No. 7/2025

Notice No. 7/2025
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Published in: DR, 2nd Series, No. 243, Part E, of 18-12-2025 Mod. 99999939/T – 01/14

Index
Text of the Notice
Text of the Notice

European Central Bank Guidance (EU) 2025/1521 of 15 July 2025 amends European Central Bank Guidance (EU) No 2017/697 of 4 April 2017 on the exercise of the powers and options provided for in Union law by national competent authorities in relation to less significant credit institutions (ECB/2017/9) (ECB/2025/25), the implementation of which was carried out by Bank of Portugal Notice No. 10/2017.

Indeed, the European Central Bank Guidance binds the Bank of Portugal, as well as other national competent authorities, to proceed with its implementation through national regulation, regarding less significant credit institutions, as determined in point (a) of paragraph 5 of Article 6 of Council Regulation (EU) No 1024/2013 of 15 October, which confers specific tasks upon the European Central Bank concerning policies relating to the prudential supervision of credit institutions.

The revisions introduced by the aforementioned Guidance aim to exercise the option provided for in Article 495-E of Regulation (EU) 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 (CRR), as added by Regulation (EU) 2024/1623 of the European Parliament and of the Council of 31 May 2024, which amends the CRR regarding requirements for credit risk, credit valuation adjustment risk, operational risk, market risk and the minimum total risk exposure amount limit (CRR III).

A transitional provision is at stake that allows competent authorities to defer the application of the prohibition on the use of credit assessments established by an External Credit Assessment Institution (ECAI) that include implicit public support assumptions, provided for in point (g) of Article 138, as amended by CRR III.

This Notice was subject to public consultation.

In these terms, the Bank of Portugal, using the competence conferred upon it by Article 17 of its Organic Law, approved by Law No. 5/98 of 31 January, by paragraph 1 of Article 99 of the General Regime of Credit Institutions and Financial Companies, approved by Decree-Law No. 298/92 of 31 December, by Article 495-E of the CRR, and also by Guidance (EU) 2025/1521 of the European Central Bank of 15 July 2025, and by point (a) of paragraph 5 of Article 6 of Council Regulation (EU) No 1024/2013 of 15 October, determines the following:

Notice No. 7/2025 of the Bank of Portugal
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Mod. 99999939/T – 01/14

Article 1.
Object
This Notice implements European Central Bank Guidance (EU) 2025/1521 of 15 July 2025, which amends European Central Bank Guidance (EU) 2017/697 of 4 April, on the exercise of the powers and options provided for in Union law by national competent authorities in relation to less significant credit institutions (ECB/2017/9) (ECB/2025/25), the implementation of which was carried out by Bank of Portugal Notice No. 10/2017.

Article 2.
Amendment to Bank of Portugal Notice No. 10/2017 The following article is added to Bank of Portugal Notice No. 10/2017:

“Article 11-A
Transitional provision applicable to ratings of institutions assigned by ECAI For the purposes of the provisions of Article 495-E and point (g) of Article 138 of Regulation (EU) No 575/2013, for risk exposures to institutions, entities may continue to use a credit assessment by an ECAI in relation to an institution that includes implicit public support assumptions, without being treated as risk exposures to institutions that are not subject to rating, until 1 January 2027.”

Article 3.
Entry into force
This Notice enters into force on the day following its publication.

9 December 2025 – The Governor, Álvaro Santos Pereira.