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1.EBA, after consulting the European Systemic Risk Board, shall assess, on the basis of available data and the findings of the Commission’s High‐Level Expert Group on Sustainable Finance, whether dedicated prudential treatment of assets exposed to activities associated substantially with environmental or social objectives, in the form of adjusted K‐factors or adjusted K‐factor coefficients, would be justified from a prudential perspective. In particular, EBA shall assess the following:
(a)methodological options for assessing the exposures of asset classes to activities substantially associated with environmental or social objectives;
(b)specific risk profiles of assets exposed to activities associated substantially with environmental or social objectives;
(c)risks related to the depreciation of assets due to regulatory changes such as climate change mitigation;
(d)potential effects of dedicated prudential treatment of assets exposed to activities associated substantially with environmental or social objectives on financial stability.
2.EBA shall submit a report on its findings to the European Parliament, to the Council and to the Commission by 26 December 2021.
3.On the basis of the report referred to in paragraph 2, the Commission shall, if appropriate, submit a legislative proposal to the European Parliament and the Council.