S.L. 330.9 Art. 45L

(1) By way of derogation from regulation 45(1), the

Resolution Committee shall determine appropriate transitional periods for institutions or entities referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1), to comply with the requirements in regulations 45E or 45F or with requirements that result from the application of regulation 45B(4), (5) or (7), as appropriate. Institutions and entities are obliged to comply with the requirements in regulations 45E or 45F, or the requirements that result from the application of regulation 45B(4), (5) or (7) by not later than 1st January, 2024:

Provided that, the Resolution Committee shall determine intermediate target levels for the requirements set out in regulations 45E or 45F, or for requirements that result from the application of regulation 45B(4), (5) or (7), as appropriate, that institutions or entities referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) shall be required to comply with as at 1 January 2022. The intermediate target levels, as a rule, shall ensure a linear build-up of own funds and eligible liabilities towards the requirement:

Provided further that, the Resolution Committee may set st a transitional period that ends after 1 January 2024 where duly justified and appropriate, on the basis of the criteria referred to in sub-regulation (7), taking into account:

(a) the development of the entity’s financial situation;

(b) the prospect that the entity will be able to ensure compliance in a reasonable timeframe with the requirements in regulation 45E or 45F, or with a requirement that results from the application of regulation 45B(4), (5) or (7); and

(c) whether the entity is able to replace liabilities that no longer meet the eligibility or maturity criteria laid down in Articles 72b and 72c of the CRR, and regulation 45B or 45F(2), and if not, whether that inability is of an idiosyncratic nature or is due to market-wide disturbance: Provided further that where, in accordance with sub-regulation (1), the Resolution Committee has set a compliance deadline ending after 1st January 2024, the application date of regulation 45 as regards regulation 45I(3) shall be the same as the compliance deadline.

(2) The deadline for resolution entities to comply with the minimum level of the requirements referred to in regulation 45C(5) or st

(6) shall be 1 January 2022.

(3) The minimum levels of the requirements referred to in regulation 45C(5) and (6) shall not apply within the two-year period following the date:

(a) on which the Resolution Committee has applied the bail-in tool; or

(b) on which the resolution entity has put in place an alternative private sector measure as referred to in paragraph (b) of regulation 32(1) by which capital instruments and other liabilities have been written down or converted into Common Equity Tier 1 instruments, or on which write down or conversion powers in accordance with regulation 59, have been exercised in respect of that resolution entity, in order to recapitalise the resolution entity without the application of resolution tools.

(4) The requirements referred to in regulation 45B(4) and (7) as well as regulation 45C(5) and (6), as applicable, shall not apply within the three-year period following the date on which the resolution entity or the group of which the resolution entity is part has been identified as a G-SII, or the resolution entity starts to be in the situation referred to in regulation 45C(5) or (6).

(5) By way of derogation from regulation 45(1), the Resolution Committee shall determine an appropriate transitional period within which to comply with the requirements of regulation 45E or 45F, or a requirement resulting from the application of regulation 45B(4), (5) or (7), as appropriate, for institutions or entities referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1), to which resolution tools or the write-down or conversion power referred to in regulation 59 have been applied.

(6) For the purposes of sub-regulations (1) to (5), the Resolution Committee shall communicate to the institution or entity referred to in paragraphs (b), (c) or (d) of the definition "entity" in regulation 2(1) a planned minimum requirement for own funds and eligible liabilities for each twelve month period during the transitional period, with a view to facilitating a gradual build-up of its loss-absorbing and recapitalisation capacity:

Provided that, at the end of the transitional period, the minimum requirement for own funds and eligible liabilities shall be equal to the amount determined under regulation 45B(4), (5) or (7), regulation 45C(5) or (6), regulation 45E or regulation 45F, as applicable.

(7) When determining the transitional periods, the Resolution Committee shall take into account:

(a) the prevalence of deposits and the absence of debt instruments in the funding model;

(b) the access to the capital markets for eligible liabilities;

(c) the extent to which the resolution entity relies on Common Equity Tier 1 capital to meet the requirement referred to in regulation 45E.

(8) Subject to sub-regulation (1), the Resolution Committee shall not be prevented from subsequently revising either the transitional period or any planned minimum requirement for own funds and eligible liabilities communicated under sub-regulation (6).