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 to come, 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 laying down 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 as follows:

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 shall enter 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 who has Finance in his portfolio is charged with the execution of this Decree.

Given at 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, fourth paragraph; Having regard to the Law of 22 February 1998 laying down 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, fourth paragraph, 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 threshold values, to be determined by the supervisory authority, must be situated.

CHAPTER 2. — Definitions

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

1° “available assets in the strict 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-realise assets;

2° “available 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 to cover the own risks of the relevant credit institution, as well as hard-to-realise assets;

3° “currently encumbered assets”: the assets encumbered according to the definitions of the implementing technical standard referred to in Article 100, second paragraph, 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 which, in the event of insolvency of the credit institution, constitute the subject of the exercise of the privilege 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 connected to eligible deposits referred to in Article 389 of the Law of 25 April 2014 and outflows connected to maturing covered lending transactions and capital market-related transactions, reduced by liquidity inflows connected to derivative transactions over this period of thirty days in stress situations which 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-realise assets”: irrecoverable 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 is not higher than 50 million euros are taken into account.

CHAPTER 3. — Determination of the 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 available assets, namely, on the one hand available assets in the strict sense and on the other hand available assets in the broad sense.

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

Art. 4. With regard to available assets in the strict sense, the minimum and maximum thresholds, referred to in Article 110, § 2, fourth paragraph 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 as dividend the available assets and as divisor the eligible deposits referred to in Article 389 of the same law.

Art. 5. With regard to available assets in the broad sense, the minimum and maximum thresholds, referred to in Article 110, § 2, fourth paragraph 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 as dividend the available assets and as divisor the eligible deposits referred to in Article 389 of the same law. 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 with 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, with regard to the public.

CHAPTER 5. — Final provision

Art. 7. This regulation shall enter into force on the day on which the Royal Decree approving it is published in the Belgian Official Journal.

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 at Brussels, 25 April 2014.

PHILIPPE

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

*

FEDERAL PUBLIC SERVICE FINANCES
[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 to come, 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 laying down the organic statute of the National Bank of Belgium; On the proposal of the Minister of Finance, We have decided and decide as follows:

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 shall enter into force on the day on which it is published in the Belgian Official Journal.

Art. 3. The Minister who has Finance in his portfolio is charged with the execution of this Decree.

Given at Brussels, 25 April 2014.

PHILIPPE

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