AI Summary of Article 477a Deductions from eligible liabilities items
By way of derogation from Article 72e(4) until 31 December 2024, a parent institution’s resolution authority may allow the adjusted amount (mi) to be calculated using specific definitions of total risk-based capital (ri) and non-risk-based Tier 1 capital (wi) for subsidiaries in non-EU countries. This requires consultation with relevant authorities of the subsidiaries.
The resolution authority may grant such permission if the subsidiary is situated in a third country lacking a local resolution regime, provided there are no significant impediments to asset transfers, or if the relevant authority confirms that transferable assets equal to the deduction amount exist.
Article 477a Deductions from eligible liabilities items
1. By way of derogation from Article 72e(4) and until 31 December 2024, the resolution authority of a parent institution, after duly considering the opinion of the resolution authorities or relevant third-country authorities of any subsidiaries concerned, may permit that the adjusted amount mi be calculated by using the following definition of ri, and wi:
ri= the total risk-based capital requirement applicable to subsidiary i in the third country where it has its head office, insofar as that requirement is met with instruments that would be considered own funds under this Regulation;
wi= the total non-risk-based Tier 1 capital requirement applicable to subsidiary i in the third country where it has its head office, insofar as that requirement is met with instruments that would be considered Tier 1 capital under this Regulation.
2. The resolution authority may grant the permission referred to in paragraph 1 where the subsidiary is established in a third country that does not yet have in place an applicable local resolution regime if at least one of the following conditions is met:
(a) there is no current or foreseen material practical or legal impediment to the prompt transfer of assets from the subsidiary to the parent institution;