Options and national discretions

Directive 2013/36/EU and Regulation (EU) N° 575/2013 contain a number of different options and discretions that partly may be used by the supervised institutions themselves and partly by the supervisory authority or national legislator respectively.

According to Article 143 §1 (b) competent authorities are required to disclose the manner of exercise of the options and discretions available in Community legislation.

ITS on Supervisory Disclosure - Annex 2 - Options and national discretions xlsx

Overview of options and discretions set out in Directive 2013/36/EU and Regulation (EU) N° 575/2013

Part 1

Overview of options and discretions set out in Directive 2013/36/EU and Regulation (EU) N° 575/2013

Details on specific transitional options and discretions set out in Regulation (EU) N° 575/2013

Part 2

Transitional provision for own funds requirements (Article 465)

Part 3

Transitional treatment of unrealised losses measured at fair value (Article 467)

Part 4

Transitional treatment of unrealised gains measured at fair value (Article 468)

Part 5 Transitional provisions on the deductions from Common Equity Tier 1, Additional Tier 1 and Tier 2 items (Article 478)
Part 6 Transitional recognition in consolidated Common Equity Tier 1 capital of instruments and items that do not qualify as minority interests (Article 479)
Part 7 Transitional recognition of minority interests and qualifying Additional Tier 1 and Tier 2 capital (Article 480)
Part 8 Additional transitional filters and deductions (Article 481)
Part 9 Limits for grandfathering of items within Common Equity Tier 1, Additional Tier 1 and Tier 2 items (Article 486)

Details on specific non-transitional options and discretions set out in Directive 2013/36/EU and Regulation (EU) N° 575/2013

Part 10 Variable elements of remuneration (Article 94 of CRD)
Part 11 Risk weights and criteria applied to exposures secured by mortgages on immovable property (Article 124 of CRR)
Part 12 Minimum Loss Given Default (LGD) values for retail exposures secured by immovable property (Article 164 of CRR)

For an overview regarding the rules and guidance in the EU Member States see the corresponding EBA webpage.

Under the lead of the ECB’s Single Supervisory Mechanism (SSM) a harmonization of the options and national discretions exercised among SSM members is envisaged.