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Commission Delegated Regulation (EU) 2015/63Show full title

Commission Delegated Regulation (EU) 2015/63 of 21 October 2014 supplementing Directive 2014/59/EU of the European Parliament and of the Council with regard to ex ante contributions to resolution financing arrangements

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Article 7Relative weight of each risk pillar and indicator

1.When assessing the risk profile of each institution the resolution authority shall apply the following weights to the risk pillars:

(a)Risk exposure: 50 %;

(b)Stability and variety of sources of funding: 20 %;

(c)Importance of an institution to the stability of the financial system or economy: 10 %;

(d)Additional risk indicators to be determined by the resolution authority: 20 %.

2.The relative weight of the risk indicators that resolution authorities shall assess to determine the ‘Risk exposure’ pillar shall be the following:

(a)Own funds and eligible liabilities held by the institution in excess of MREL: 25 %;

(b)Leverage Ratio: 25 %;

(c)Common Equity Tier 1 Capital Ratio: 25 %;

(d)Total Risk Exposure divided by Total Assets: 25 %.

3.Each risk indicator in the ‘Stability and variety of sources of funding’ pillar shall have an equal weight.

4.The relative weight of each indicator that resolution authorities shall assess to determine the ‘Additional risk indicators to be determined by the resolution authority’ pillar shall be the following:

(a)Trading activities and off-balance sheet exposures, derivatives, complexity and resolvability: 45 %;

(b)Membership in an Institutional Protection Scheme: 45 %;

(c)Extent of previous extraordinary public financial support: 10 %.

When applying the indicator referred to in point (b), the resolution authority shall take into account the relative weight of the indicator referred to in point (a).

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