2015, by amended by Legal Notice 132
2022. 1.
these regulations is the CRR (Implementing and Transitional Provisions) Regulations.
these regulations is to implement Articles 4
the CRR. 2.
the CRR; "Additional Tier 1 items" shall consist
the items indicated in Article 51
the CRR; "committed credit or liquidity facility" shall have the same meaning as that assigned to it in point
the CRR; "Commission Delegated Regulation (EU) 241/2014" means Commission Delegated Regulation (EU) 241/2014
7 January 2014 supplementing Regulation (EU) No 575/2013
the European Parliament and
the Council with regard to regulatory technical standards for Own Funds requirements for institutions, as amended from time to time; "Common Equity Tier 1 capital" shall have the same meaning as that assigned to it in Article 50
the CRR; "Common Equity Tier 1 capital ratio" shall be calculated in accordance with point (a)
the CRR; "Common Equity Tier 1 items" shall consist
the items indicated in Article 26
the CRR; "CRR" means Regulation (EU) No 575/2013
the European Parliament and
the Council
26 June 2013 on prudential requirements for credit institutions and investment firms and amending Regulation (EU) No 648/2012, as amended from time to time, and includes any implementing measures that have been or may be made thereunder; Citation and purpose. Amended by: L.N. 132
2022. Interpretation. Amended by: L.N. 132
10 October 2014 to supplement Regulation (EU) No 575/2013
the European Parliament and the Council with regard to liquidity coverage requirement for credit institutions, as amended from time to time; "market value" shall have the same meaning as that assigned to it in point
the CRR; "own funds instruments" shall have the same meaning as that assigned to it in point
the CRR; "parent financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "parent institution" shall have the same meaning as that assigned to it in point
the CRR; "parent mixed financial holding company" shall have the same meaning as that assigned to it in point
the CRR; "participation" shall have the same meaning as that assigned to it in point
the CRR; "Regulation (EU) No 648/2012" means Regulation (EU) No 648/ 2012
the European Parliament and
the Council
4 July 2012 on OTC derivatives, central counterparties and trade repositories, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "Tier 1 capital" shall have the same meaning as that assigned to it in Article 25
the CRR; "Tier 1 capital ratio" shall be calculated in accordance with point (b)
the CRR; "Tier 2 capital" shall have the same meaning as that assigned to it in Article 71
the CRR; "Tier 2 items" shall consist
the items indicated in Article 62
the CRR.
indirect holdings in real estate. Added by: L.N. 132
2022. 2A. The competent authority may allow shares constituting an equivalent indirect holding
real estate to be treated as a direct holding
real estate in accordance with Article 4
the CRR, provided that, such indirect holding, when pledged as collateral, shall provide an equivalent protection to creditors. Application
prudential requirements on an individual basis. Added by: L.N. 132
2022. 2B.
the CRR as follows: waive the (a) where both the subsidiary and the credit institution are licensed by the competent authority, the CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) [ S.L.371.17 3 competent authority may grant the waiver to the subsidiary where it is included in the supervision on a consolidated basis
the credit institution which is the parent undertaking, and all the conditions laid down in Article 7
the CRR are fulfilled, in order to ensure that the own funds are distributed adequately between the parent undertaking and the subsidiary; and (b) where a parent institution in Malta is licensed and supervised by the competent authority and is included in the supervision on a consolidated basis, the competent authority may grant the waiver to the parent institution in Malta where all the conditions laid down in Article 7
the CRR are fulfilled to ensure that own funds are distributed adequately among the parent undertaking and the subsidiaries.
Part Six
the CRR to a credit institution and to all or some
its subsidiaries when these are established in the European Union or in Malta and supervise them as a single liquidity sub-group as long as the conditions referred to in Article 8
the CRR are fulfilled. Application
liquidity requirements on an individual basis. Added by: L.N. 132
2022.
participations or capital ties other than those referred to in paragraphs 1 and 4
the CRR, the competent authority may supervise such participation or capital ties on a consolidated basis, in particular by requiring or permitting the use
the equity method. In such case, this method shall not constitute inclusion
the undertakings concerned in supervision on a consolidated basis. Consolidation in the case
participations or capital ties. Added by: L.N. 132
2022. 2E. The competent authority may decide to supervise on a consolidated basis, credit institutions referred to in Article 18
the CRR in accordance with the Supervisory Consolidation (Credit Institutions) Regulations. Consolidation in the case
significant influence and single management. Added by: L.N. 132
2022. 2F. Where a credit institution has a subsidiary which is an undertaking other than an institution, a financial institution or an ancillary services undertaking or holds a participation in such an undertaking, it shall apply to that subsidiary or participation the equity method. In such case, this method shall not constitute inclusion
the undertakings concerned in supervision on a consolidated basis: Consolidation in the case
other subsidiaries or participations. Added by: L.N. 132
2022. 4 [ S.L.371.17 CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) Provided that the competent authority may allow or require a credit institution to apply a different method to such subsidiaries or participations, including the method required by the applicable accounting framework, in accordance with points (a) to (c)
the CRR. Requirement for deduction where consolidation, supplementary supervision or institutional protection schemes are applied. Deduction
holdings
financial sector entities. Added by: L.N. 132
calculating own funds on an individual basis, a sub-consolidated basis and a consolidated basis, as an alternative to the deduction
holdings
own funds instruments
a financial sector entity in which the parent institution, parent financial holding company or parent mixed financial holding company or credit institution has a significant investment, the competent authority shall permit credit institutions to apply method 1, 2 or 3
Annex I to Directive 2002/87/EC subject to the conditions laid down in Article 49
the CRR. The method chosen shall be applied in a consistent manner over time. 3A. For the purposes
calculating own funds on an individual basis and a sub-consolidated basis, in terms
the CRR, where a credit institution is subject to supervision on a consolidated basis in accordance with Chapter 2
Part One
the CRR, the competent authority may require the credit institution to deduct holdings
own funds instruments issued by financial sector entities included in the scope
consolidated supervision: Provided that this shall only be required in specific cases, in particular in the case
structural separation
banking activities and resolution planning. General prior permission to reduce own funds. Added by: L.N. 132
2022. 3B.
the CRR for a credit institution to reduce its own funds where the conditions laid down in Article 78
the CRR and
the Commission Delegated Regulation (EU) 241/2014
7 January 2014 supplementing Regulation (EU) No 575/2013
the European Parliament and
the Council with regard to regulatory technical standards for Own Funds requirements for institutions, are fulfilled.
the CRR shall be determined. Reduction
additional Tier 1 or Tier 2 instruments. 3C. In accordance with Article 78
the CRR, the competent authority may grant permission for credit institutions to call, redeem, repay or repurchase Additional Tier 1 or Tier 2 instruments during the five years following their date
issuance under: (
the CRR; (
the CRR: CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) [ S.L.371.17 5 Provided that the conditions laid down in Article 78
the CRR are met. 3D. The competent authority shall grant a temporary waiver for the deduction
own funds instruments or eligible liabilities for the purpose
facilitating a financial assistance operation in accordance with the conditions specified in Article 79
the CRR and in Article 33
Commission Delegated Regulation (EU) No 241/
the CRR to qualifying holdings
credit institutions referred to in Article 89
the CRR. 4A. For the purposes
the CRR, the competent authority shall, in a Banking Rule, provide a list
the public sector entities established in Malta for which exposures to such entities shall be considered by credit institutions as exposures to the Government
Malta. 4B. In terms
the Act, the competent authority shall, at least annually and jointly with the Central Bank, assess whether the risk weights referred to in Article 125
the CRR adequately reflect the actual risks related to exposures to one or more property segments fully secured by mortgages on residential property or on commercial immovable property located in Malta in accordance with Article 124
the CRR. Where such risk weight is deemed not appropriate, the competent authority, jointly with the Central Bank, may adjust the risk weights in accordance with the following ranges: Temporary waiver
the deduction from own funds instruments or eligible liabilities. Qualifying holdings outside the financial sector. Exposures to public sector entities. Added by: L.N. 132
2022. Exposures secured by mortgages on immovable property (risk weights). Added by: L.N. 132
2022. (
the CRR, the part
the loan to which the 35% risk weight is assigned, unless otherwise determined in accordance with regulation 4B, shall not exceed 70%
the market value
the property in question, as long as the conditions laid down in Article 125
the CRR are met. 5A. In terms
the Act, the competent authority shall, at least annually, and jointly with the Central Bank, assess whether the minimum Loss Given Default (LGD), as referred to in paragraph 4
the CRR, are appropriate for ex posures secured b y m ortg ag es o n resident ial propert y or commercial immovable property located in Malta. Where the competent authority, jointly with the Central Bank, conclude that such minimum LGD values are not adequate and could adversely affect Malta’s current or future financial stability, the competent authority, jointly with the Central Bank, may set higher minimum LGD values for those exposures located in Malta. Such higher minimum LGD values may also be applied at the level
one or more property segments
such exposures. Exposures secured by mortgages on residential immovable property. Substituted by: L.N. 132
2022. Exposures secured by mortgages on immovable property (Loss Given Default values). Added by: L.N. 132
2022. 6 [ S.L.371.17 Exposure value under internal models. Added by: L.N. 132
2022. Limits to large exposures. Added by: L.N. 132
2022. Large exposures. Amended by: L.N. 132
2022. CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) 5B. For the purposes
calculating the exposure value in terms
the CRR, the competent authority may require credit institutions to use a higher alpha (α) or grant them the permission to use their own estimates
α in accordance with the conditions laid down in paragraph 9
the Article 284
the CRR. 5C. For the purposes
the CRR, the competent authority may, in exceptional cases, where exposures exceed the limit set out in Article 395
time within which to comply with such limit. 6.
the CRR from the application
the CRR where the conditions listed in Article 400
the CRR, and as may be further specified in a Banking Rule, are met.
derogation from Article 400
the CRR and in line with Article 493
the CRR, for a transitional period until the entry into force
any legal act following the review in accordance with Article 507
the CRR, but not after 31 December 2028, the exposures listed in Article 493
the CRR shall be fully exempt from the application
the CRR. Compliance with liquidity requirements. Added by: L.N. 132
2022. Restriction on currency mismatches for the calculation
NSFR. Added by: L.N. 132
2022. Interdependent assets and liabilities for the calculation
NSFR. Added by: L.N. 132
2022. 6A. For the purposes
the CRR, the competent authority may allow a credit institution that does not meet, or does not expect to meet, the requirements set out in Article 412 or 413
the CRR, including during times
stress, to report the items referred to in Title III and IV, in the implementing act referred to in Article 415
the CRR or in the delegated act referred to in Article 460
the CRR, at a lower reporting frequency and apply a longer reporting delay, depending on the situation
the credit institution. 6B. For the purposes
restricting currency mismatches, the competent authority shall set limits on the proportion
required stable funding in a particular currency that can be met by available st able fu nd ing t hat is not de nom in ated in t hat curre ncy, in accordance with the conditions laid down in Article 428b
the CRR: Provided that such restriction may only be applied for a currency that is subject to separate reporting in accordance with Article 415
the CRR. 6C.
the conditions that are laid down in Article 428f
the CRR are fulfilled.
the CRR, allow a credit institution to apply a higher available stable funding factor or a lower required stable funding factor to assets, liabilities and committed credit or liquidity facilities which meet all
the conditions laid down in the said Article 428h.
f-balance sheet exposures not referred to in Chapter 4
Part Six
the CRR, the competent authority shall, in accordance with Article 428p
the CRR, apply required st able f un ding fact ors t hat correspond to the out flo w r ates applicable to related products and services referred to in Article 23
the Delegated Regulation (EU) 2015/61 in the liquidity coverage requirement. 6F. Credit institutions that are not able to freely dispose
assets which have been segregated in accordance with Article 11
Regulation (EU) No 648/2012, shall consider such assets as encumbered for a period corresponding to the term
the liabilities to the credit institutions’ customers to whom that segregation requirement relates. 6G. The competent authority may, in terms
i
the CRR, allow a small and non-complex institution, as defined in point
the CRR, to calculate the ratio between the credit institution’s available and required stable funding as referred to in Chapters 6 and 7
, Part Six
the CRR, expressed as a percentage. 6H. Where a credit institution has been granted permission in accordance with regulation 6G, it shall, for the purposes
fbalance sheet exposures not referred to in Chapter 4
Part Six
the CRR and in terms
the CRR, apply the required stable funding factors that correspond to the outflow rates applicable to related products and services referred to in Article 23
the Delegated Regulation (EU) 2015/61 in the liquidity coverage requirement. 6I. Where a credit institution has been granted permission in accordance with regulation 6G, it shall, where it is not able to freely dispose
assets which have been segregated in accordance with Article 11
Regulation (EU) No 648/2012, consider such assets as encumbered for a period corresponding to the term
the liabilities to the credit institutions’ customers to whom that segregation requirement relates, in accordance with Article 428ar
the CRR. 7. The competent authority shall apply an outflow rate
5% for trade finance
f-balance sheet related products as referred to in Article 429 and Annex I
the CRR. 7 Preferential treatment within a group or within an institutional protection scheme for NSFR. Added by: L.N. 132
2022. Required stable funding for
fbalance sheet exposures. Added by: L.N. 132
2022. Term
encumbrance
segregated assets. Added by: L.N. 132
2022. Application
Simplified Net Stable Funding Ratio. Added by: L.N. 132
2022. Required stable funding factors for
f-balance-sheet exposures under the simplified NSFR. Added by: L.N. 132
2022. Term
encumbrance
segregated asset under the simplified NSFR. Added by: L.N. 132
2022. Liqudity outflows. 8 [ S.L.371.17 Exemption
central bank exposures from the leverage ratio. Added by: L.N. 132
2022. Waiver for reporting requirements
duplicative points. Added by: L.N. 132
2022. Disclosure
exposures to counterparty credit risk. Added by: L.N. 132
2022. Own funds requirements. CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) 7A. The competent authority shall, in order to facilitate the implementation
monetary policies in terms
the CRR, and in consultation with the Central Bank, publicly determine whether exceptional circumstances exist under which exposures listed in point (n)
paragraph 1
the CRR may be excluded from the total exposure measure referred to in such paragraph. 7B. Where the competent authority determines that the reporting templates specified in the implementing technical standards referred to in Article 430
the CRR contain duplicative data points as defined in such article, the competent authority may waive the reporting requirements for such data points in accordance with Article 430
the CRR. 7C.
the CRR, the competent authority may, where the Central Bank provides liquidity assistance in the form
collateral swap transaction, and where the competent authority considers that the disclosure
such information could reveal that emergency liquidity assistance has been provided, exempt credit institutions from abiding by the requirements laid down in points (d) and (e)
the CRR.
4.5%; (b) a Tier 1 capital ratio
6%. Unrealised losses measured at fair value. 9. The applicable percentage for the purposes
the CRR shall be: (
the CRR shall be: (
the CRR shall be: CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) [ S.L.371.17 (
the CRR as it applies to the items referred to in points (a)-(b)
the CRR shall be: (
the CRR as it applies to the items referred to in points (c)-(h)
the CRR excluding deferred tax assets that rely on future profitability and arise from temporary differences shall be: (
the CRR shall be: (
derogation from sub-regulation
the CRR that existed prior to 1 January 2014, the applicable percentage for the purpose
the CRR shall be: Deductions from Common Equity Tier 1 items. 9 10 [ S.L.371.17 CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) (
Equity Holdings in Insurance Companies from Common Equity Tier 1 items. Introduction
amendments to IAS 19. Deductions from Additional Tier 1 items. 12. (
the CRR, as applicable, multiplied by the factor applied in accordance with Article 473
the CRR. 14. The applicable percentage for the purposes
(a)
the CRR shall be: (
(a)
the CRR shall be: (
the CRR shall be: (
instruments and items that do not qualify as minority interests. (
the CRR shall be: (
minority interests and qualifying Additional Tier 1 and Tier 2 capital. (
the CRR for the inclusion
unrealised gains measured at fair value in Tier 2 capital shall be: Additional filters and deductions. (
the CRR for the period from 1 January 2014 to 31 December 2014 shall be 50%. 19. The applicable percentage for the purposes
the CRR shall be: (
items within Common Equity Tier 1, Additional Tier 1 and Tier 2 items. 12 [ S.L.371.17 CRR (IMPLEMENTING AND TRANSITIONAL PROVISIONS) (
AI explanation based on the official legal text. Indicative, not a substitute for legal advice.