Recital 55

(55) The additional own funds requirement set by an institution’s competent authority in accordance with Directive 2013/36/EU to address risks other than the risk of excessive leverage should not be increased as a result of the institution becoming bound by the output floor laid down in Regulation (EU) No 575/2013, all else being equal. Furthermore, upon the institution becoming bound by the output floor, the competent authority should review that institution’s additional own funds requirement and assess, in particular, whether and to what extent such requirements are already fully covered by the fact that the institution is bound by the output floor. Where that is the case, the institution’s additional own funds requirement should be regarded as overlapping with the risks captured by the output floor in the own funds requirement of the institution and, consequently, the competent authority should reduce that requirement to the extent necessary to remove any such overlap for as long as the institution remains bound by the output floor.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04 · Text as adopted (Official Journal); later amendments are not incorporated in this text.