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By way of derogation from paragraph 2, an EU parent institution may, until 31 December 2027, request permission from its consolidating supervisor to calculate a separate interest, leases and dividend component for any of its specific subsidiary institutions and to add the outcome of that calculation to the interest, leases and dividend component calculated, on a consolidated basis, for the other entities of the group where all of the following conditions are met: (a) the subsidiaries’ retail or commercial banking activities account for the majority of their activity; (b) a significant proportion of the subsidiaries’ retail or commercial banking activities comprise loans associated with a high PD; (c) the use of the derogation provides an appropriate basis for calculating the EU parent institution’s own funds requirement for operational risk. Once granted, the permission, and its conditions, shall be reassessed by the consolidating supervisor every two years. The consolidating supervisor shall notify EBA as soon as such permission is granted, confirmed or withdrawn. By 31 December 2031, EBA shall report to the Commission on the use and appropriateness of the derogation referred to in the first subparagraph having regard, in particular, to the specific business models concerned and to the adequacy of the related own funds requirement for operational risk. On the basis of that report, and taking due account of the related internationally agreed standards developed by the BCBS, the Commission shall, where appropriate, submit to the European Parliament and to the Council a legislative proposal by 31 December 2032.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04