AI Summary of Article 487 Items excluded from grandfathering in Common Equity Tier 1 or Additional Tier 1 items in other elements of own funds
From 1 January 2014 to 31 December 2021, institutions are permitted to treat certain capital and related share premium accounts as specified in Articles 484(4) and 484(5), despite exceeding the limits outlined in Articles 486(2) and 486(3). This derogation applies under specific conditions that ensure the overall inclusion does not surpass the applicable percentage limits.
The European Banking Authority (EBA) is tasked with formulating draft regulatory technical standards to clarify these conditions, which will be submitted to the Commission by 28 July 2013. The Commission retains the power to adopt these standards in line with Regulation (EU) No 1093/2010.
Article 487 Items excluded from grandfathering in Common Equity Tier 1 or Additional Tier 1 items in other elements of own funds
1. From 1 January 2014 to 31 December 2021, institutions may, by way of derogation from Articles 51, 52, 62 and 63, treat as items referred to in Article 484(4), capital, and the related share premium accounts, referred to in Article 484(3) that are excluded from Common Equity Tier 1 items because they exceed the applicable percentage specified in Article 486(2), to the extent that the inclusion of that capital and the related share premium accounts, does not exceed the applicable percentage limit referred to in Article 486(3).
2. From 1 January 2014 to 31 December 2021, institutions may, by way of derogation from Articles 51, 52, 62 and 63, treat the following as items referred to in Article 484(5), to the extent that their inclusion does not exceed the applicable percentage limit referred to in Article 486(4):