If there is a difference in the layout of the text below and in the PDF document, the PDF document applies.

No. 1343/2024

26 November 2024

RULES

on large risk exposures of financial undertakings.

Article 1. Scope of application.

These Rules apply to financial undertakings that calculate large risk exposures in accordance with the Act on Financial Undertakings, No. 161/2002.

Article 2.

Determination of the total amount of large risk exposures and identification of shadow banking activity.

In determining the total amount of risk exposures of a client or a group of connected clients and in identifying such a group, financial undertakings shall comply with the provisions of Regulations (EU) No. 1187/2014 and 2024/1728, see Article 3.

As regards the criteria for the identification of shadow banking activity, Regulation (EU) 2023/2779 shall apply, see Article 3.

Article 3. Implementation of regulations.

With reference to Article 2, the following regulations apply in this country:

• a) Commission Regulation (EU) No. 1187/2014 of 2 October 2014 amending Regulation (EU) No. 575/2013 of the European Parliament and of the Council as regards technical supervisory standards to determine the total risk exposure in respect of a client or a group of connected clients in respect of transactions with underlying assets, which was incorporated into the EEA Agreement by Decision No. 82/2019 of the EEA Joint Committee of 29 March 2019, published in the EEA Supplement to the Official Journal of the European Union No. 44 of 2 July 2020, p. 71. The Regulation is published in the EEA Supplement to the Official Journal of the European Union No. 50 of 23 July 2020, p. 344-348.

• b) Commission Regulation (EU) 2023/2779 of 6 September 2023 amending Regulation (EU) No. 575/2013 of the European Parliament and of the Council as regards technical supervisory standards specifying the criteria for the identification of shadow banking activity referred to in Article 394(2) of Regulation (EU) No. 575/2013, which was incorporated into the EEA Agreement by Decision No. 99/2024 of the EEA Joint Committee of 26 April 2024, published in the EEA Supplement to the Official Journal of the European Union No. 60 of 8 August 2024, p. 28.

• c) Commission Regulation (EU) 2024/1728 of 6 December 2023 amending Regulation (EU) No. 575/2013 of the European Parliament and of the Council as regards technical supervisory standards specifying in greater detail under which conditions the criteria for the identification of groups of connected clients are met, which was incorporated into the EEA Agreement by Decision No. 242/2024 of the EEA Joint Committee of 25 October 2024.

With reference to the authority in transitional provision III of Act No. 161/2002 on financial undertakings, see Act No. 57/2015, the Central Bank of Iceland refers to the publication of the English version of Commission Regulations (EU) 2023/2779 and 2024/1728 in the Official Journal of the European Union:

• https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=CELEX%3A32023R2779, published in OJ L, sub-series R, 2023/2779, on 12 December 2023;

• https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:32024R1728, published in OJ L, sub-series R, 2024/1728, on 18 June 2024.

Article 4. Entry into force.

These Rules, which are issued under the authority of items 1, 70 and 71 of paragraph 2 of Article 117(b) of the Act on Financial Undertakings, No. 161/2002, enter into force immediately. Upon their entry into force, Rules No. 776/2024 on large risk exposures of financial undertakings are repealed.

Central Bank of Iceland, 26 November 2024.

	Ásgeir Jónsson, Governor of the Central Bank.	Rannveig Júníusdóttir, Executive Director.

B division - Date of publication: 28 November 2024