Measures to limit macroprudential or systemic risks

(1) Where the Committee on Financial Stability determines changes in the intensity of macroprudential or systemic risk within the meaning of Article 458(2) of Regulation (EU) No 575/2013 that may lead to a disruption with significant effects on the national financial system and the real economy domestically, and that cannot be addressed as effectively by other macroprudential instruments under Regulation (EU) No 575/2013 and Directive 2013/36/EU as by the implementation of stricter national measures, the Federal Institute may, at the request of the Committee on Financial Stability, by way of a general order, depart, for a period of up to two years, from the following requirements of Regulation (EU) No 575/2013, as amended from time to time, in respect of all or a group of the institutions and undertakings subject to the Federal Institute's supervision under this Act or Regulation (EU) No 575/2013, in order to reduce the changes determined in the intensity of macroprudential or systemic risk, by increasing 1. the own funds requirements under Article 92 of Regulation (EU) No 575/2013, as amended from time to time, 2. the large exposure requirements under Articles 392 and 395 to 403 of Regulation (EU) No 575/2013, as amended from time to time, 3. the disclosure duties under Articles 431 to 455 of Regulation (EU) No 575/2013, as amended from time to time, 4. the capital conservation buffer under section 10c, 5. the liquidity requirements under Part Six of Regulation (EU) No 575/2013, as amended from time to time, or 6. the risk weights in the standardised approach to credit risk and in the internal ratings-based approach for loans for residential and commercial immovable property and for exposures existing between institutions and undertakings within the financial sector.
(2) The Federal Institute may issue the general order under subsection (1) only where 1. it has a) notified the European Commission and the European Systemic Risk Board of the evidence required for the threat to financial stability at national level under Article 458(2), letters a to f, of Regulation (EU) No 575/2013, including the national measures provided for in subsection (1) that implement Article 458(2), letter d, of Regulation (EU) No 575/2013, and b) set out that other macroprudential instruments available under Regulation (EU) No 575/2013 and Directive 2013/36/EU would be less suitable and less effective to address the threat to financial stability at national level, and 2. the conditions under Article 458(4) of Regulation (EU) No 575/2013 for issuing the measure are met.
(3) The Federal Institute reviews the national measures determined under subsection (1), on the involvement of the European Systemic Risk Board and the European Banking Authority, after expiry of the period provided for, in accordance with Article 458(9) of Regulation (EU) No 575/2013. Where the conditions for extending the application of the national measures issued under subsection (1) are met, the Federal Institute may, at the request of the Committee on Financial Stability and in accordance with the procedure provided for in Article 458(4) of Regulation (EU) No 575/2013, by way of a general order, repeatedly extend the national measures, in each case by up to a further two years.
(4) The Federal Institute may, in consultation with the Deutsche Bundesbank and after referral to the Committee on Financial Stability, recognise, in whole or in part, measures issued under Article 458 of Regulation (EU) No 575/2013, as amended from time to time, by other member states of the European Economic Area, in accordance with Article 458(5) to (7) of Regulation (EU) No 575/2013, and apply them with effect for institutions with their registered office domestically that have branches or exposures in the state of the European Economic Area that issued the measure under Article 458 of Regulation (EU) No 575/2013.
(5) Where the conditions under subsection (2), point 1, are met, the Federal Institute may, independently of the procedure under subsections (1) and (3) and under Article 458(4) of Regulation (EU) No 575/2013, at any time until a macroprudential or systemic risk is eliminated, but for no longer than a period of two years, 1. lower the large exposure limit under Article 395 of Regulation (EU) No 575/2013 by up to 15 percent, 2. increase the risk weights of loans for residential and commercial immovable property in the standardised approach to credit risk and in the internal ratings-based approach by up to 25 percent, and 3. increase the risk weights in the standardised approach to credit risk for exposures entered into between institutions and undertakings within the financial sector by up to 25 percent, and in the internal ratings-based approach by 25 percent.