What changed between the plenary report and the adopted text

Removed:(56) ‘conversion factor’ or ‘credit conversion factor’ or ‘CCF’ means the ▌ratio of the currently undrawn amount of a commitment from a single facility that could be drawn from a single facility before default and that would therefore be outstanding at default to the currently undrawn amount of the commitment from that facility, the extent of the commitment being determined by the advised limit, unless the unadvised limit is higher;’;

Removed:(n) the following point (56a) is inserted:

Removed:‘(56a) ‘realised CCF’ means the ratio of the drawn amount of a commitment from a single facility, that was undrawn at a given reference date prior to default, and that is therefore outstanding at default, to the undrawn amount of the commitment from that facility at that reference date;’;

Removed:(o) points (58), (59) and 60 are replaced by the following:

Removed:‘(58) ‘funded credit protection’ or ‘FCP’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution is derived from the right of that institution, in the event of the default of the obligor or on the occurrence of other specified credit events relating to the obligor, to liquidate, or to obtain transfer or appropriation of, or to retain certain assets or amounts, or to reduce the amount of the exposure to, or to replace it with, the amount of the difference between the amount of the exposure and the amount of a claim on the institution;

Removed:(59) ‘unfunded credit protection’ or ‘UFCP’ means a technique of credit risk mitigation where the reduction of the credit risk on the exposure of an institution is derived from the obligation of a third party to pay an amount in the event of the default of the obligor or the occurrence of other specified credit events;

Removed:(60) ‘cash assimilated instrument’ means a certificate of deposit, a bond, including a covered bond, or any other non-subordinated instrument, which has been issued by the lending institution, for which the lending institution has already received full payment and which shall be unconditionally reimbursed by the lending institution at its nominal value;’;

Removed:(p) the following point (60a) is inserted:

Removed:‘(60a) ‘gold bullion’ means gold in the form of a commodity, including gold bars, ingots and coins, commonly accepted by the bullion market, where liquid markets for bullion exist, and the value of which is determined by the value of the gold content, defined by purity and mass, rather than by its interest to numismatists;’;

Removed:(q) the following point (74a) is inserted :

Removed:‘(74a) ‘property value’ means the value of an immovable property determined in accordance with Article 229(1);’;

Removed:(r) point (75) is replaced by the following:

Removed:‘(75) ‘residential property’ means any of the following:

Removed:(a) an immovable property which has the nature of a dwelling and satisfies all applicable laws and regulations enabling the property to be occupied for housing purposes;

Removed:(b) an immovable property which has the nature of a dwelling and is still under construction, provided that there is the expectation that the property will satisfy all applicable laws and regulations enabling the property to be occupied for housing purposes;

Removed:(c) the right to inhabit an apartment in housing cooperatives located in Sweden

Removed:(d) land accessory to a property referred to in points (a), (b) or (c);’;

Removed:(s) the following points (75a) to (75g) are inserted:

Removed:‘(75a) ‘commercial immovable property’ means any immovable property that is not residential property▌;

Removed:(75b) ‘income producing real estate exposure’ or IPRE exposure means an exposure secured by one or more residential or commercial immovable properties where the fulfilment of the credit obligations related to the exposure materially depends on the cash flows generated by those immovable properties securing that exposure, rather than on the capacity of the obligor to fulfil the credit obligations from other sources; the primary source of such cash flows would be lease or rental payments, or proceeds from the sale of the residential property or commercial immovable property;

Removed:(75c) ‘non-income producing real estate exposure’ (non-IPRE exposure) means any exposure secured by one or more residential or commercial immovable properties that is not an IPRE exposure;

Removed:(75d) ‘non-ADC exposure’ means any exposure secured by one or more residential or commercial immovable properties that is not an ADC exposure;

Removed:(75e) ‘exposure secured by residential property’, or ‘exposure secured by a mortgage on residential property’, or ‘exposure secured by residential property collateral’, or ‘exposure secured by residential immovable property’, means an exposure secured by ▌residential property or an exposure regarded as such in accordance with Article 108(3);

Removed:(75f) ‘exposure secured by commercial immovable property’, or ‘exposure secured by a mortgage on commercial immovable property’, or ‘exposure secured by commercial immovable property collateral’ means an exposure secured by a ▌commercial immovable property▌;

Removed:(75g) ‘exposure secured by immovable property’, or ‘exposure secured by a mortgage on immovable property’, or ‘exposure secured by immovable property collateral’ means an exposure secured by a ▌residential or commercial immovable property or an exposure regarded as such in accordance with Article 108(3);’;

Removed:(t) points (78) and (79) are replaced by the following:

Removed:‘(78) ‘one-year default rate’ means the ratio between the number of obligors or where the classification as defaulted is applied at facility level pursuant to the second subparagraph of Article 178(1), facilities in respect of which a default is considered to have occurred during a period that starts from one year prior to a date of observation T, and the number of obligors, or ▌where the classification as defaulted is applied at facility level pursuant to the second subparagraph of Article 178(1), facilities assigned to this grade or pool one year prior to that date of observation T;

Removed:(79) ‘ADC exposures’ or ‘land acquisition, development and construction exposures’ means loans to corporates or special purpose entities financing any land acquisition for development and construction purposes, or financing development and construction of any residential or commercial immovable property;’;

Removed:(u) point (114) is replaced by the following:

Removed:‘(114) ‘indirect holding’ means any exposure to an intermediate entity that has an exposure to capital instruments issued by a financial sector entity or to liabilities issued by an institution where, in the event the capital instruments issued by the financial sector entity or the liabilities issued by the institution were permanently written off, the loss that the institution would incur as a result would not be materially different from the loss the institution would incur from a direct holding of those capital instruments issued by the financial sector entity or of those liabilities issued by the institution;’

Removed:(v) point (126) is replaced by the following:

Removed:‘(126) ‘synthetic holding’ means an investment by an institution in a financial instrument the value of which is directly linked to the value of the capital instruments issued by a financial sector entity or to the value of the liabilities issued by an institution;’;

Removed:(w) point (144) is replaced by the following:

Removed:‘(144) ‘trading desk’ means a well-identified group of dealers set up by the institution to jointly manage a portfolio of trading book positions, or the non-trading book positions referred to in Article 104b, paragraphs 5 and 6, in accordance with a well-defined and consistent business strategy and operating under the same risk management structure;’

Removed:(x) ▌ point (145) is amended as follows:

Removed:(a) point (f) is replaced by the following:

Removed:‘(f) the institution's consolidated assets or liabilities relating to activities with counterparties located in the European Economic Area, excluding intragroup exposures in the European Economic Area, exceed 75% of both the institution’s consolidated total assets and liabilities, excluding in both cases the intragroup exposures,’;

Removed:(b) the following subparagraph is inserted:

Removed:‘For the purposes of point (e), an institution may exclude derivative positions it entered with its non-financial clients and the derivatives positions it uses to hedge those positions, provided that the combined value of the excluded positions calculated in accordance with Article 273a(3) does not exceed 10% of the institution’s total on- and off-balance sheet assets.’;

Removed:(y) the following points are added:

Removed:‘(151) ‘revolving exposure’ means any exposure whereby the borrower’s outstanding balance is permitted to fluctuate based on its decisions to borrow and repay, up to a limit established by the lending institution;

Removed:(152) ‘transactor exposure’ means any revolving exposure that has at least 12 months of repayment history and that is one of the following:

Removed:(a) an exposure for which, on a regular basis of at least every 12 months, the amount to be repaid at the next scheduled repayment date is determined as the drawn amount or an instalment at a predefined reference date or upon contractual repayment modalities, with all scheduled repayment dates not later than after 12 months, provided that the amount or instalment owed to the lending institution has been repaid in full at each scheduled repayment date for the previous 12 months;

Removed:(b) an overdraft facility where there have been no drawdowns over the previous 12 months;

Removed:(152a) ‘fossil fuel sector entity’ means a company, enterprise or undertaking primarily active in deriving any revenues from exploration, mining, extraction, production, processing, storage, refining or distribution, including transportation, storage, and trade, of fossil fuels as defined in Article 2, point (62), of Regulation (EU) 2018/1999 of the European Parliament and of the Council*.

Removed:EBA shall issue guidelines, in accordance with Article 16 of Regulation (EU) No 1093/2010, to specify the conditions under which the company, enterprise or undertaking is to be considered primarily active in deriving any revenues from exploration, mining, extraction, production, processing, storage, refining or distribution, including transportation, storage and trade, of fossil fuels.

Removed:(152b) ‘assets or activities subject to impacts from environmental and/or social factors’ means assets or activities impacting the ambition of the Union to achieve climate neutrality as specified in Article 3, point (69a) of Directive 2013/36/EU.

Removed:(152c) ‘shadow-banking-entity’ means an entity that offers banking services or performs banking activities and that it is not subject to prudential requirements similar to those imposed by this Regulation.

Removed:________________________

Removed:* Regulation (EU) 2018/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663/2009 and (EC) No 715/2009 of the European Parliament and of the Council, Directives 94/22/EC, 98/70/EC, 2009/31/EC, 2009/73/EC, 2010/31/EU, 2012/27/EU and 2013/30/EU of the European Parliament and of the Council, Council Directives 2009/119/EC and (EU) 2015/652 and repealing Regulation (EU) No 525/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, p. 1).’;

Removed:(1a) in Article 4, the following paragraph is added:

Removed:‘4a. For the purposes of point (18), point (c), of paragraph 1, EBA shall issue guidelines specifying the criteria for the identification of activities by ... [OP please insert date = 1 year after entry into force of this Regulation].

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

Removed:(2) Article 5 is amended as follows:

Removed:(a) point (3) is replaced by the following:

Removed:‘(3) ‘expected loss’ or ‘EL’ means the ratio, related to a single facility, of the amount expected to be lost on an exposure from any of the following:

Removed:(i) a potential default of an obligor over a one-year period to the amount outstanding at default;

Removed:(ii) a potential dilution event over a one-year period to the amount outstanding at the date of occurrence of the dilution event;’;

Removed:(b) the following points (4) to (10) are added:

Removed:‘(4) ‘credit obligation’ means any obligation arising from a credit contract, including principal, accrued interest and fees, owed by an obligor to an institution or, where the institution serves as a guarantor, owed by an obligor to a third party;