Regulatory Alerts2018-05-08
Added · Updated
Regulation of 10 April 2018 of the National Bank of Belgium concerning the own funds of payment institutions
This regulation partially transposes Directive (EU) 2015/2366, establishing own funds requirements for Belgian payment institutions. It mandates that own funds must always be at least equal to the initial capital (Article 4) and specifies eligible own funds elements based on Regulation (EU) No 575/2013, requiring Tier 1 own funds to constitute at least 75% of Common Equity Tier 1, with Tier 2 own funds capped at one-third of Tier 1 (Article 6). The National Bank of Belgium determines which of three methods (A, B, C) applies for calculating solvency requirements, which include thresholds like 10% of general expenses or percentages of payment volume, and may adjust these requirements by up to 20% based on risk management assessments (Articles 9-10).