S.I. No. 661/2006 - European Communities (Capital Adequacy of Credit Institutions) Regulations 2006

• (5) Until 31 December 2012, the Bank may allow credit institutions to continue to apply to participations of the type set out in Regulation 3(2)(g) acquired before 20 July 2006 the treatment set out in Article 38 of Directive 2000/12/EC as that Article stood prior to 1 January 2007.

• (6) Until 31 December 2010 the exposure-weighted average LGD for all retail exposures secured by residential properties and not benefiting from guarantees from central governments shall not be lower than 10%.

• (7) Until 31 December 2017, the Bank may exempt from the IRB treatment certain equity exposures held by credit institutions and EU subsidiaries of credit institutions in the State at 31 December 2007.

• (8) For the purposes of paragraph (7) -

• (a) the exempted position shall be measured at the number of shares as of 31 December 2007 and any additional share arising directly as a result of owning those holdings, as long as they do not increase the proportional share of ownership in a portfolio company,

• (b) where an acquisition increases the proportional share of ownership in a specific holding, the exceeding part of the holding shall not be subject to the exemption (except that the exemption shall not apply to holdings that were originally subject to exemption, but have been sold and then bought back), and

• (c) equity exposures shall be subject to the capital requirements calculated in accordance with Chapter 2 of Part 4.

• (9) Until 31 December 2011, for corporate exposures the Bank may set the number of days past due that all credit institutions in its jurisdiction shall abide by under the definition of “default” set out in point 44 of Part 4 of Annex VII to the recast Directive (CI) for exposures to such counterparties situated within the State.

• (10) For the purposes of paragraph (9) -

• (a) the specific number shall fall within 90-up to a figure of 180 days if local conditions make it appropriate,

• (b) for exposures to counterparties situated in the territories of other Member States, the Bank shall set a number of days past due which is not higher than the number set by the competent authority of the respective Member State.

Footnotes