Own funds recommendation

(1) On the basis of the assessment under section 6b(2) and the stress test carried out under section 6b(3), the supervisory authority determines, for each institution, institutional group, financial holding group, and mixed financial holding group, the adequate total amount of own funds, and, on that basis, issues an own funds recommendation to the institution, institutional group, financial holding group, or mixed financial holding group. The amount of this own funds recommendation results from the difference between the own funds requirements to be complied with by the institution, institutional group, financial holding group, or mixed financial holding group under Parts Three, Four, and Seven of Regulation (EU) No 575/2013, Chapter 2 of Regulation (EU) 2017/2402, sections 6c and 10i, and Article 92(1a) of Regulation (EU) No 575/2013, and the adequate total amount of own funds determined under the first sentence.
(1a) Where an institution, an institutional group, a financial holding group, or a mixed financial holding group is subject to the output floor own funds minimum, the supervisory authority may review the guidance for additional own funds that it has communicated to that institution, institutional group, financial holding group, or mixed financial holding group, to ensure that the calibration remains appropriate.
(2) The own funds recommendation may cover risks captured by the additional own funds requirement ordered under section 6c(1) only insofar as it covers aspects of those risks not already covered by the additional own funds requirement under section 6c(1).
(3) Own funds used to comply with the own funds recommendation to cover the risk of excessive leverage may not be used to meet the additional own funds requirements ordered under section 6c to cover the risk of excessive leverage, nor to meet the requirements listed in section 6c(6), first sentence, points 1 to 4. Own funds used to comply with the own funds recommendations to cover other risks may not be used to meet the additional own funds requirements ordered under section 6c to cover risks other than the risk of excessive leverage, nor to meet the requirements listed in section 6c(6), second sentence, points 1 to 4.
(4) For as long as an institution, an institutional group, a financial holding group, or a mixed financial holding group meets the requirements set out in Parts Three, Four, and Seven of Regulation (EU) No 575/2013 and in Chapter 2 of Regulation (EU) 2017/2402, the additional own funds requirement under section 6c, the combined capital buffer requirement under section 10i, and the leverage ratio buffer requirement under Article 92(1a) of Regulation (EU) No 575/2013, failure to cover the own funds recommendation in full does not trigger any of the restrictions under section 10i(1a) to (3) and section 10j(2) and (3).