Royal Decree of 25 April 2014 approving the Regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans

FEDERAL PUBLIC SERVICE FINANCES [C − 2014/03192] 25 APRIL 2014. — Royal Decree approving the regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans

PHILIPPE, King of the Belgians, To all, present and future, Greetings.

Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions, Article 110; Having regard to the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium; On the proposal of the Minister of Finance and on the advice of the Ministers who have deliberated in Council,

We have decided and decide:

Article 1. The regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans, annexed to this decree, is approved.

Art. 2. This decree enters into force when Article 110 of the Law of 25 April 2014 on the status and supervision of credit institutions enters into force.

Art. 3. The Minister having Finance in his attributions is charged with the execution of this decree.

Given in Brussels, 25 April 2014.

PHILIPPE By the King: The Minister of Finance, K. GEENS

Annex to the Royal Decree approving the regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans

Regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans

The National Bank of Belgium,

Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions, in particular Article 110, § 2, paragraph 4; Having regard to the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium, in particular Article 12bis, § 2,

Decides:

CHAPTER 1. — Introductory provision

Article 1. This regulation implements Article 110, § 2, paragraph 4, of the Law of 25 April 2014 on the status and supervision of credit institutions by determining the minimum and maximum thresholds between which the scales of thresholds, to be determined by the supervisory authority, must be situated.

CHAPTER 2. — Definitions

Art. 2. For the application of this regulation, the following shall be understood:

1° "encumbered assets in the narrow sense": the total assets of a credit institution reduced by currently encumbered assets, potentially future encumbered assets in the lead-up to a default of the relevant credit institution, and hard-to-liquidate assets;

2° "encumbered assets in the broad sense": the total assets of a credit institution reduced by the currently encumbered assets of the relevant credit institution, with the exception of assets provided as collateral in the context of the use of central bank liquidity facilities or activities covering the own risks of the relevant credit institution, as well as hard-to-liquidate assets;

3° "currently encumbered assets": assets encumbered according to the definitions of the implementing technical standard referred to in Article 100, paragraph 2, 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, with the exception of assets that have been lent and, in the event of a default of the credit institution, constitute the subject of the preference right referred to in Article 389 of the Law of 25 April 2014;

4° "potentially future encumbered assets in the lead-up to a default": liquidity outflows over a period of thirty days in stress situations, with the exception of outflows related to eligible deposits referred to in Article 389 of the Law of 25 April 2014 and outflows related to maturing covered lending transactions and capital market-related transactions, reduced by liquidity inflows related to derivative transactions over this thirty-day period in stress situations that are included in the calculation of the liquidity coverage requirement applicable to the credit institution as defined in the delegated act referred to in Article 460, paragraph 1, of the aforementioned Regulation (EU) No 575/2013;

5° "hard-to-liquidate assets": non-performing and doubtful claims and intangible fixed assets;

6° "the Law of 25 April 2014": the Law of 25 April 2014 on the status and supervision of credit institutions;

7° "eligible deposits as referred to in Article 389 of the Law of 25 April 2014": the deposits referred to in paragraphs 1 and 2 of Article 389 of the Law of 25 April 2014. With regard to the part of the deposits of small and medium-sized enterprises that exceeds the coverage level determined in Article 382 of the Law of 25 April 2014, only the deposits of small and medium-sized enterprises as defined in Article 15 of the Companies Code and whose annual turnover does not exceed 50 million euros are taken into account.

CHAPTER 3. — Determination of minimum and maximum thresholds

Art. 3. The indicators referred to in Article 110 of the Law of 25 April 2014 are based on two types of encumbered assets, namely, on the one hand, encumbered assets in the narrow sense and, on the other hand, encumbered assets in the broad sense.

These indicators are calculated on an individual basis per credit institution.

Art. 4. With regard to encumbered assets in the narrow sense, the minimum and maximum thresholds, referred to in Article 110, § 2, paragraph 4, of the Law of 25 April 2014, between which the supervisory authority must establish scales, are at least 80% and at most 100% calculated on the basis of the division with the encumbered assets as the dividend and the eligible deposits referred to in Article 389 of the same law as the divisor.

Art. 5. With regard to encumbered assets in the broad sense, the minimum and maximum thresholds, referred to in Article 110, § 2, paragraph 4, of the Law of 25 April 2014, between which the supervisory authority must establish scales, are at least 100% and at most 135% calculated on the basis of the division with the encumbered assets as the dividend and the eligible deposits referred to in Article 389 of the same law as the divisor. Depending on the specificity and risk profile of the credit institutions, the supervisory authority may set the scale at a lower level than 100% in individual cases, without it being able to be less than 95%.

CHAPTER 4. — Disclosure

Art. 6. Credit institutions may not, directly or indirectly, make reference to the indicators determined in application of Article 110, § 2, of the Law of 25 April 2014 or the decisions taken in implementation of this article, nor to their individual situation with regard to those indicators, vis-à-vis the public.

CHAPTER 5. — Final provision

Art. 7. This regulation enters into force on the day on which the Royal Decree approving it is published in the Belgian State Gazette.

Brussels, 1 April 2014. The Governor L. COENE

Seen to be annexed to our decree approving the regulation of 1 April 2014 of the National Bank of Belgium concerning encumbered assets in the context of recovery plans.

Given in Brussels, 25 April 2014.

PHILIPPE By the King: The Minister of Finance, K. GEENS

[C − 2014/03191] 25 APRIL 2014. — Royal Decree approving the regulation of 1 April 2014 of the National Bank of Belgium concerning proprietary trading activities

PHILIPPE, King of the Belgians, To all, present and future, Greetings.

Having regard to the Law of 25 April 2014 on the status and supervision of credit institutions, Articles 119 to 133; Having regard to the Law of 22 February 1998 establishing the organic statute of the National Bank of Belgium; On the proposal of the Minister of Finance,

We have decided and decide:

Article 1. The regulation of 1 April 2014 of the National Bank of Belgium concerning proprietary trading activities, annexed to this decree, is approved.

Art. 2. This decree enters into force on the day on which it is published in the Belgian State Gazette.

Art. 3. The Minister having Finance in his attributions is charged with the execution of this decree.

Given in Brussels, 25 April 2014.

PHILIPPE By the King: The Minister of Finance, K. GEENS