Royal Decree of 3 September 2010 approving the CBFA Regulation of 27 July 2010 on the liquidity of credit institutions, financial companies, liquidation bodies and bodies assimilated to liquidation bodies

WETTEN, DECREETS, ORDONNANTIES EN VERORDENINGEN LOIS, DECRETS, ORDONNANCES ET REGLEMENTS FEDERAL PUBLIC SERVICE FINANCES N. 2010 — 3245 [C − 2010/03517] 3 SEPTEMBER 2010. — Royal Decree approving the regulation of the Commission for the Bank, Finance and Insurance of 27 July 2010 on the liquidity of credit institutions, financial holdings, liquidation bodies and bodies assimilated to liquidation bodies

ALBERT II, King of the Belgians,
To all whom these presents shall come, Greeting.

Having regard to the Act of 2 August 2002 on the supervision of the financial sector and financial services, Article 64; Having regard to the Act of 22 March 1993 on the status and supervision of credit institutions, Articles 43 and 49; Having regard to the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies, Article 13; Having regard to the opinion of the National Bank of Belgium received in accordance with Article 43, § 5, of the Act of 22 March 1993 on the status and supervision of credit institutions; Having regard to the opinion of the Supervisory Board received in accordance with Article 49, § 3, of the Act of 2 August 2002 on the supervision of the financial sector and financial services; Having regard to the consultation of credit institutions, financial holdings, liquidation bodies and bodies assimilated to liquidation bodies through their professional associations; Having regard to the experiences during the financial crisis and pending the introduction of internationally proclaimed harmonised quantitative liquidity standards; On the proposal of the Minister of Finance,

We have decided and decide:

Article 1. The regulation of the Commission for the Bank, Finance and Insurance of 27 July 2010 on the liquidity of credit institutions, financial holdings, liquidation bodies and bodies assimilated to liquidation bodies, attached to this Decree, is approved.

Art. 2. This Decree enters into force on 1 January 2011.

Art. 3. The Minister responsible for Finance is charged with the execution of this Decree.

Given at Brussels, 3 September 2010.

ALBERT
By the King:
The Minister of Finance,
D. REYNDERS

FEDERAL PUBLIC SERVICE FINANCES
F. 2010 — 3245 [C − 2010/03517]
3 SEPTEMBER 2010. — Royal Decree approving the regulation of the Banking, Finance and Insurance Commission of 27 July 2010 relating to the liquidity of credit institutions, financial companies, liquidation bodies and bodies assimilated to liquidation bodies

ALBERT II, King of the Belgians,
To all, present and future, Greeting.

Having regard to the Act of 2 August 2002 on the supervision of the financial sector and financial services, Article 64; Having regard to the Act of 22 March 1993 on the status and supervision of credit institutions, Articles 43 and 49; Having regard to the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies, Article 13; Having regard to the opinion of the National Bank of Belgium, received in accordance with Article 43, § 5, of the Act of 22 March 1993 on the status and supervision of credit institutions; Having regard to the opinion of the Supervisory Board, received in accordance with Article 49, § 3, of the Act of 2 August 2002 on the supervision of the financial sector and financial services; Having regard to the consultation of credit institutions, financial companies, liquidation bodies and bodies assimilated to liquidation bodies, represented by their professional associations; Having regard to the experience gained during the financial crisis and pending the introduction of internationally proclaimed harmonised quantitative liquidity standards; On the proposal of the Minister of Finance,

We have decided and decide:

Article 1. The regulation of the Banking, Finance and Insurance Commission of 27 July 2010 relating to the liquidity of credit institutions, financial companies, liquidation bodies and bodies assimilated to liquidation bodies, annexed to this Decree, is approved.

Art. 2. This Decree enters into force on 1 January 2011.

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

Given at Brussels, 3 September 2010.

ALBERT
By the King:
The Minister of Finance,
D. REYNDERS

BELGIAN OFFICIAL GAZETTE — 16.09.2010 — MONITEUR BELGE 58143

Regulation of the Commission for the Bank, Finance and Insurance of 27 July 2010 on the liquidity of credit institutions, financial holdings, liquidation bodies and bodies assimilated to liquidation bodies

The Commission for the Bank, Finance and Insurance,

Having regard to Article 43, § 1, of the Act of 22 March 1993 on the status and supervision of credit institutions; Having regard to Article 13 of the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies; Having regard to the opinion of the National Bank of Belgium; Having regard to the experiences during the financial crisis and pending the introduction of internationally proclaimed harmonised quantitative liquidity standards; Having regard to the situation in our neighbouring countries and with a view to a level playing field for institutions, the CBFA considered it appropriate to further evolve its policy on the management of liquidity risk, as established by the circular of 20 December 2006 and by the circular of 8 May 2009, by declaring binding the observation ratios for the liquidity risk of institutions mentioned in the circular of 8 May 2009.

Decides:

Article 1. The provisions of this Regulation apply to:
1° credit institutions within the meaning of Article 1, second paragraph, 1°, and referred to in Titles II, III and IV of the Act of 22 March 1993 on the status and supervision of credit institutions; 2° financial holdings within the meaning of Article 49, § 1, 2° of the Act of 22 March 1993 on the status and supervision of credit institutions; 3° liquidation bodies under Belgian law within the meaning of Article 2, 17°, of the Act of 2 August 2002 on the supervision of the financial sector and financial services; 4° bodies assimilated to a liquidation body under Belgian law, within the meaning of Article 1, 5°, of the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies.

The institutions referred to in the first to fourth paragraphs are hereinafter referred to as "the institutions".

Art. 2. § 1. Credit institutions under Belgian law within the meaning of Title II of the Act of 22 March 1993 on the status and supervision of credit institutions must comply with the liquidity requirements prescribed by this Regulation based on their individual position. Credit institutions under Belgian law that are parent companies within the meaning of Article 3 of the Royal Decree of 23 September 1992 on the consolidated annual accounts of credit institutions and investment firms must also comply with the liquidity requirements prescribed by this Regulation based on their consolidated position. Credit institutions under Belgian law that are parent companies and also subsidiaries of another credit institution under Belgian law subject to the liquidity requirements based on its consolidated position, must comply with the liquidity requirements prescribed by this Regulation only based on their individual position.

§ 2. Branches in Belgium of credit institutions under foreign law within the meaning of Titles III and IV of the Act of 22 March 1993 on the status and supervision of credit institutions must comply with the liquidity requirements prescribed by this Regulation based on their territorial position.

Règlement de la Commission bancaire, financière et des Assurances du 27 juillet 2010 relatif à la liquidité des établissements de crédit, des compagnies financières, des organismes de liquidation et des organismes assimilés à des organismes de liquidation

La Commission bancaire, financière et des Assurances,

Vu l’article 43, § 1er, de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit; Vu l’article 13 de l’arrêté royal du 26 septembre 2005 relatif au statut des organismes de liquidation et des organismes assimilés à des organismes de liquidation; Vu l’avis de la Banque nationale de Belgique; Vu l’expérience acquise durant la crise financière et dans l’attente de l’introduction de normes de liquidité quantitatives harmonisées, édictées sur le plan international; Vu la situation observée dans les pays voisins et compte tenu de la nécessité, afin d’assurer l’égalité des conditions de concurrence entre les établissements, de faire évoluer sa propre politique relative à la gestion du risque de liquidité, telle qu’établie dans ses circulaires du 20 décembre 2006 et du 8 mai 2009, en déclarant contraignants les ratios d’observation prévus par la circulaire du 8 mai 2009 pour la gestion du risque de liquidité des établissements.

Arrête :

Article 1er. Les dispositions du présent règlement s’appliquent :
1° aux établissements de crédit au sens de l’article 1er, alinéa 2, 1°, et visés aux titres II, III et IV de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit; 2° aux compagnies financières au sens de l’article 49, § 1er, 2°, de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit; 3° aux organismes de liquidation de droit belge au sens de l’article 2, 17°, de la loi du 2 août 2002 relative à la surveillance du secteur financier et aux services financiers; 4° aux organismes de droit belge assimilés à des organismes de liquidation, au sens de l’article 1er, 5°, de l’arrêté royal du 26 septembre 2005 relatif au statut des organismes de liquidation et des organismes assimilés à des organismes de liquidation.

Les établissements, compagnies et organismes visés aux points 1° à 4° sont désignés ci-après par le vocable « établissements ».

Art. 2. § 1er. Les établissements de crédit de droit belge au sens du titre II de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit sont tenus de respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation sociale. Les établissements de crédit de droit belge qui sont des entreprises mères au sens de l’article 3 de l’arrêté royal du 23 septembre 1992 relatif aux comptes consolidés des établissements de crédit, des entreprises d’investissement et des sociétés de gestion d’organismes de placement collectif, doivent également respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation consolidée. Les établissements de crédit de droit belge qui sont des entreprises mères mais également des filiales d’autres établissements de crédit de droit belge soumis aux exigences de liquidité sur la base de leur situation consolidée, ne sont tenus de respecter les exigences de liquidité prévues par le présent règlement que sur la base de leur situation sociale.

§ 2. Les succursales en Belgique d’établissements de crédit de droit étranger au sens des titres III et IV de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit sont tenues de respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation territoriale.

58144 BELGIAN OFFICIAL GAZETTE — 16.09.2010 — MONITEUR BELGE

§ 3. Financial holdings within the meaning of Article 49, § 1, 2° of the Act of 22 March 1993 on the status and supervision of credit institutions must comply with the liquidity requirements prescribed by this Regulation based on their consolidated position.

§ 4. Liquidation bodies under Belgian law within the meaning of Article 2, 17°, of the Act of 2 August 2002 on the supervision of the financial sector and financial services and bodies assimilated to a liquidation body under Belgian law, within the meaning of Article 1, 5°, of the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies, must comply with the liquidity requirements prescribed by this Regulation based on their individual position.

Liquidation bodies under Belgian law and bodies assimilated to a liquidation body under Belgian law that are parent companies within the meaning of Article 25, § 3 of the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies, must also comply with the liquidity requirements prescribed by this Regulation based on their consolidated position.

§ 5. For the application of the provisions of § 1 and § 3 of this Article, consolidated position means the consolidated position as defined in Article 49 of the Act of 22 March 1993 on the status and supervision of credit institutions.

For the application of the provisions of § 4 of this Article, consolidated position means the consolidated position as defined in Article 25 of the Royal Decree of 26 September 2005 on the status of liquidation bodies and bodies assimilated to liquidation bodies.

Institutions that are parent companies may, however, opt not to include the liquidity position of subsidiaries under Belgian and foreign law in the calculation of liquidity requirements based on their consolidated position if:
1° the contribution of the subsidiary to the consolidated balance sheet total of the parent company is less than three percent for individual subsidiaries and less than ten percent for the total of these subsidiaries; and 2° the parent company guarantees that the potential liquidity needs of these subsidiaries are very limited compared to those of the parent company and cannot significantly affect the liquidity position of the parent company, both in normal and exceptional circumstances; and 3° the subsidiaries are established in a country where a convertible currency is used as the official currency.

Convertible currencies are defined in the context of this Regulation as the official currencies of countries that are part of the European Economic Area, as well as the official currencies of Australia, Canada, Japan, the United States, Switzerland and New Zealand.

Institutions that are parent companies may also opt not to include the liquidity positions of their subsidiaries that are insurance institutions in the calculation of liquidity requirements based on their consolidated position. The contribution of these excluded insurance institutions to the consolidated balance sheet total of the parent company must then also not be taken into account in the calculation of the ten percent limit set out in the first paragraph of the conditions set out in this paragraph.

§ 6. For the application of the provisions of this Article, territorial position means the position of the entirety of the offices and centres of activity in Belgium of a credit institution under foreign law.

§ 3. Les compagnies financières au sens de l’article 49, § 1er, 2°, de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit sont tenues de respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation consolidée.

§ 4. Les organismes de liquidation de droit belge au sens de l’article 2, 17°, de la loi du 2 août 2002 relative à la surveillance du secteur financier et aux services financiers, et les organismes de droit belge assimilés à des organismes de liquidation, au sens de l’article 1er, 5°, de l’arrêté royal du 26 septembre 2005 relatif au statut des organismes de liquidation et des organismes assimilés à des organismes de liquidation, sont tenus de respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation sociale.

Les organismes de liquidation de droit belge et les organismes de droit belge assimilés à des organismes de liquidation qui sont des entreprises mères au sens de l’article 25, § 3, de l’arrêté royal du 26 septembre 2005 relatif au statut des organismes de liquidation et des organismes assimilés à des organismes de liquidation, doivent également respecter les exigences de liquidité prévues par le présent règlement sur la base de leur situation consolidée.

§ 5. Pour l’application des dispositions des §§ 1er et 3 du présent
article, la situation consolidée s’entend de la situation consolidée telle
que visée à l’article 49 de la loi du 22 mars 1993 relative au statut et au contrôle des établissements de crédit.

Pour l’application des dispositions du § 4 du présent article, la situation consolidée s’entend de la situation consolidée telle que visée à l’article 25 de l’arrêté royal du 26 septembre 2005 relatif au statut des organismes de liquidation et des organismes assimilés à des organismes de liquidation.

Les établissements qui sont des entreprises mères peuvent toutefois choisir de ne pas inclure la position de liquidité de filiales de droit belge ou de droit étranger dans le calcul des exigences de liquidité sur la base de leur situation consolidée si :
1° la part de ces filiales dans le total du bilan consolidé de l’entreprise mère constitue, par filiale, moins de trois pour cent et, pour l’ensemble des filiales, moins de dix pour cent du total du bilan consolidé de l’entreprise mère; 2° l’entreprise mère donne la garantie que les besoins potentiels de liquidité de ces filiales sont très limités par rapport aux siens et ne peuvent influencer de manière significative sa position de liquidité, tant dans des circonstances normales que dans des circonstances exceptionnelles; et 3° les filiales sont établies dans un pays dont la monnaie officielle est une monnaie convertible.

Pour l’application du présent règlement, sont considérées comme des monnaies convertibles les monnaies officielles des pays faisant partie de l’Espace économique européen, ainsi que les monnaies officielles de l’Australie, du Canada, des Etats-Unis, du Japon, de la Nouvelle-Zélande et de la Suisse.

Les établissements qui sont des entreprises mères peuvent en outre choisir de ne pas inclure dans le calcul des exigences de liquidité sur la base de leur situation consolidée les positions de liquidité de leurs filiales qui sont des entreprises d’assurances. La part de ces entreprises d’assurances, laissées en dehors de la consolidation, dans le total du bilan consolidé de l’entreprise mère ne doit pas, dans ce cas, être comprise dans le calcul de la limite de dix pour cent visée à l’alinéa 3, 1°, du présent paragraphe.

§ 6. Pour l’application du présent article, la situation territoriale s’entend de la situation de l’ensemble des agences et centres d’activités en Belgique d’un établissement de crédit de droit étranger.

BELGIAN OFFICIAL GAZETTE — 16.09.2010 — MONITEUR BELGE 58145

Art. 3. The available liquidity of an institution in exceptional circumstances must always be greater than or equal to the required liquidity at less than one week and at less than one month for the institution in these circumstances.

For the application of the provisions of this article, institutions must use the calculation method set out in the annex to this regulation for the available liquidity of an institution in exceptional circumstances and the required liquidity at less than one week and at less than one month for the institution in these circumstances.

Art. 4. This regulation enters into force on 1 January 2011.

Brussels, 27 July 2010.

The Chairman,
J.-P. SERVAIS

Annex to the Regulation of the Banking, Finance and Insurance Commission of 27 July 2010 on the liquidity of credit institutions, financial companies, resolution bodies and entities assimilated to resolution bodies

The available liquidity of an institution in exceptional circumstances must always be greater than or equal to the required liquidity at less than one week and at less than one month for the institution in these circumstances.

This annex sets out the calculation method that institutions must use for calculating this available liquidity in exceptional circumstances and the required liquidity at less than one week and at less than one month for the institution in these circumstances.

The reporting tables and terminology used in this annex are described and further explained by circular of the Banking, Finance and Insurance Commission.

For the application of this regulation, institutions must calculate the available liquidity in exceptional circumstances as the sum of the weighted items from basic reporting table 90.31 for positions in all currencies (euro and other convertible currencies as well as non-convertible currencies) and from basic reporting table 90.32 for positions in euro and other convertible currencies, based on the weightings determined in Table 1 of this annex.

For the application of this regulation, institutions must calculate the required liquidity at less than one week and at less than one month for the institution in exceptional circumstances as the sum of the weighted items from 90.32 for positions in all currencies (euro and other convertible currencies as well as non-convertible currencies), based on the weightings determined in Table 2 of this annex.

Convertible currencies are defined in the context of this regulation as the official currencies of countries that are part of the European Economic Area, as well as the official currencies of Australia, Canada, Japan, the United States, Switzerland and New Zealand.

Art. 3. The liquidity available at an institution in exceptional circumstances must always be greater than or equal to the liquidity required at less than one week and at less than one month at the institution in these circumstances.

For the application of this article, institutions determine the liquidity available in exceptional circumstances, as well as the liquidity required at less than one week and at less than one month in these circumstances, by using the calculation method set out in the annex to this regulation.

Art. 4. This regulation enters into force on 1 January 2011.

Brussels, 27 July 2010.

The President,
J.-P. SERVAIS

Annex to the Regulation of the Banking, Finance and Insurance Commission of 27 July 2010 relating to the liquidity of credit institutions, financial companies, resolution bodies and entities assimilated to resolution bodies

The liquidity available at an institution in exceptional circumstances must always be greater than or equal to the liquidity required at less than one week and at less than one month at the institution in these circumstances.

This annex sets out the calculation method to be used by institutions to determine the liquidity available in exceptional circumstances as well as the liquidity required at less than one week and at less than one month in these circumstances.

The reporting tables in this annex and the related terminology are explained by circular issued by the Banking, Finance and Insurance Commission.

For the application of this regulation, institutions calculate the liquidity available in exceptional circumstances by adding the items from basic reporting table 90.31 for positions in all currencies (euro, other convertible currencies and non-convertible currencies) and those from basic reporting table 90.32 for positions in euro and other convertible currencies, items to be weighted according to the percentages mentioned in Table 1 of this annex.

For the application of this regulation, institutions calculate the liquidity required at less than one week and at less than one month in exceptional circumstances by adding the items from basic reporting table 90.32 for positions in all currencies (euro, other convertible currencies and non-convertible currencies), items to be weighted according to the percentages mentioned in Table 2 of this annex.

For the application of this regulation, convertible currencies are considered to be the official currencies of countries that are part of the European Economic Area, as well as the official currencies of Australia, Canada, the United States, Japan, New Zealand and Switzerland.

Table 1: Weighting of items from basic reporting tables 90.31 and 90.32 in available liquidity
Table 1: Weighting of items from basic reporting tables 90.31 and 90.32
to determine available liquidity

Table 2: Weighting of items from basic reporting table 90.32
on one week and one month required liquidity
Table 2: Weighting of items from basic reporting table 90.32
to determine liquidity required at less than one week and at less than one month