What changed between the plenary report and the adopted text

Removed:(d) recovery of administrative expenses including recovery of payments on behalf of customers;

Removed:(e) expenses of premises and fixed assets, except where those expenses result from operational risk events;

Removed:(f) depreciation of tangible assets and amortisation of intangible assets, except the depreciation related to operating lease assets, which shall be included in financial and operating lease expenses;

Removed:(g) provisions and reversal of provisions, except where those provisions relate to operational risk events;

Removed:(h) expenses due to share capital repayable on demand;

Removed:(i) impairment and reversal of impairment;

Removed:(j) changes in goodwill recognised in profit or loss;

Removed:(k) corporate income tax.

Removed:6. EBA shall develop draft regulatory technical standards to specify the following:

Removed:(a) the components of the business indicator by developing a list of typical sub-items, taking into account international regulatory standards; for the Financial Component calculation, that list shall not be used to separate TC and BC components and shall not prevent an institution from addressing sub-items to the TC or the BC components according to their prudential boundary defined in Part three, Title I, Chapter 3;

Removed:(b) the elements listed in paragraph 5.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 18 months after entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:7. EBA shall develop draft implementing technical standards to specify the items of the business indicator by mapping those items with the reporting cells concerned set out in Commission Implementing Regulation (EU) 2021/451*5.

Removed:EBA shall submit those draft implementing technical standards to the Commission by [OP please insert the date = 24 months after entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the implementing technical standards referred to in the first subparagraph in accordance with Article 15 of Regulation (EU) No 1093/2010.

Removed:1. Institutions shall include business indicator items of merged or acquired entities or activities in their business indicator calculation from the time of the merger or acquisition, as applicable, and shall cover the previous three financial years.

Removed:2. Institutions may request permission from the competent authority to exclude business indicator items related to disposed entities or activities from the calculation of their business indicator.

Removed:3. EBA shall develop draft regulatory technical standards to specify the following:

Removed:(a) how institutions shall determine the adjustments to the business indicator referred to in paragraph 1 and 2;

Removed:(b) the conditions according to which competent authorities may grant the permission referred to in paragraph 2;

Removed:(c) the timing of the adjustments referred to in paragraph 2.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 18 months after entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:1. Institutions with a business indicator equal to or exceeding EUR 750 million shall calculate annual operational risk losses as the sum of all net losses over a given financial year, calculated in accordance with Article 318(1), that are equal to or exceed the loss data thresholds set out in Article 319, paragraphs 1 or 2, respectively.

Removed:By way of derogation from the first subparagraph, competent authorities may grant a waiver from the requirement to calculate an annual operational risk loss to institutions with a business indictor that does not exceed EUR 1 billion, provided that the institution has demonstrated to the satisfaction of the competent authority that it would be unduly burdensome for the institution to apply the first subparagraph.

Removed:2. For the purposes of paragraph 1, the relevant business indicator shall be the highest value of the business indicator the institution has reported at the last eight reporting reference dates. An institution that has not yet reported its business indicator shall use its most recent business indicator.

Removed:3. EBA shall develop draft regulatory technical standards to specify the condition of ‘unduly burdensome’ for the purposes of the first paragraph.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 18 months after entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:1. Institutions that calculate annual operational risk losses in accordance with Article 316(1) shall have in place arrangements, processes and mechanisms to inform and maintain updated on an ongoing basis a loss data set compiling for each recorded operational risk event the gross loss amounts, non-insurance recoveries, insurance recoveries, reference dates and grouped losses, including those from misconduct events.

Removed:2. The institution’s loss data set shall capture all operational risk events stemming from all the entities that are part of the scope of consolidations pursuant to Part One, Title II, Chapter 2.

Removed:3. For the purpose of paragraph 1, institutions shall:

Removed:(a) include in the loss data set each operational risk event recorded during one or multiple financial years;

Removed:(b) use a date no later than the date of accounting for including losses related to operational risk events in the loss data set;

Removed:(c) allocate losses and related recoveries posted to the accounts over several years to the corresponding financial years of the loss data set, in line with their accounting treatment.

Removed:4. Institutions shall also collect:

Removed:(a) information about the reference dates of operational risk events, including:

Removed:(i) the date when the operational risk event happened or first began (‘date of occurrence’), where available;

Removed:(ii) the date on which the institution became aware of the operational risk event (‘date of discovery’);

Removed:(iii) the date or dates on which an operational risk event results in a loss, or the reserve or provision against a loss, recognised in the institution’s profit and loss accounts (‘date of accounting’);

Removed:(b) information on any recoveries of gross loss amounts as well as descriptive information about the drivers or causes of the loss events.

Removed:The level of detail of any descriptive information shall be commensurate with the size of the gross loss amount.

Removed:5. An institution shall not include in the loss data set operational risk events related to credit risk that are accounted for in the risk weighted exposure amount for credit risk. Operational risk events that relate to credit risk but are not accounted for in the risk weighted exposure amount for credit risk shall be included in the loss data set.

Removed:6. Operational risk events related to market risk shall be treated as operational risk and be included in the loss data set.

Removed:7. An institution shall upon request from the competent authority be able to map its historical internal loss data to the event type▌.

Removed:8. For the purposes of this Article, institutions shall ensure the soundness, robustness and performance of the IT systems and infrastructure necessary to maintain and update the loss data set by confirming all of the following:

Removed:(a) that the IT systems and infrastructure of the institution for the purposes of this Article are sound and resilient and that that soundness and resilience can be maintained on a continuous basis;

Removed:(b) that the institution’s IT systems and infrastructure implemented for the purpose of this Article is subject to configuration management, change management and release management processes;

Removed:(c) where the institution outsources parts of the maintenance of the IT systems and infrastructure implemented for the purpose of this Article, that the soundness, robustness and performance of the IT infrastructure is ensured by confirming at least the following:

Removed:(i) that the IT systems and infrastructure of the institution for the purpose of this Article are sound and resilient and that those features can be maintained on a continuous basis;

Removed:(ii) that the process for planning, creating, testing, and deploying the IT systems and infrastructure for the purpose of this Article is sound and proper with reference to project management, risk management, and governance, engineering, quality assurance and test planning, systems’ modelling and development, quality assurance in all activities, including code reviews and where appropriate, code verification, and testing, including user acceptance;

Removed:(iii) that the institution’s IT systems and infrastructure for the purpose of this Article is subject to configuration management, change management and release management processes;

Removed:(iv) that the process for planning, creating, testing, and deploying the IT systems and infrastructure and contingency plans for the purpose of this Article is approved by the institution’s management body or senior management and that the management body and senior management are periodically informed about the IT infrastructure performance for the purposes of this Article.

Removed:9. For the purposes of paragraph 7 of this Article, EBA is mandated to develop draft regulatory technical standards establishing a risk taxonomy on operational risk and a methodology to classify, based on that risk taxonomy on operational risk, the loss events included in the loss data set, that should comply with international standards.

Removed:EBA shall submit those draft regulatory technical standards to the Commission by [OP please insert the date = 18 months after entry into force of this Regulation].

Removed:Power is delegated to the Commission to adopt the regulatory technical standards referred to in the first subparagraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.

Removed:10. For the purposes of paragraph 8, EBA shall develop guidelines explaining the technical elements necessary to ensure the soundness, robustness and performance of governance arrangements to maintain the loss data set, with a particular focus on IT systems and infrastructures.

Removed:Those guidelines shall be issued in accordance with Article 16 of Regulation (EU) No 1093/2010.

Removed:1. For the purposes of Article 316(1), institutions shall calculate for each operational risk event a net loss as follows: