Décision du 28 juillet 2023 relative au coussin pour le risque systémique sectoriel

The present Decision dated 28 July 2023 sets the sectoral systemic risk buffer rate.
According to Article 1, the establishments subject to this Decision are defined as:
– „établissements assujettis“ (credit institutions) as defined in Article 4(1) of EU Regulation No. 575/2013 subject to the application of sectoral systemic risk buffer,
– „sociétés non financières“ (non-financial corporations) as defined in Annex A, point 2.45 of EU Regulation No. 549/2013,
– „sociétés non financières françaises“ (French non-financial corporations) with their registered office in France, and
– „groupe non financier de clients liés“ (non-financial group of connected clients) as defined in Article 4(39) of EU Regulation No. 575/2013.
These financial sector entities are required to adhere to the regulations and guidelines specified in the respective EU directives and regulations (e.g., EU Directive 2013/36/UE and EU Regulation No. 549/2013) concerning prudential requirements, access to credit activity, and the monitoring of credit institutions and non-financial corporations. Compliance with these rules is mandatory to ensure the stability and soundness of the financial system.
According to Article 2, the systemic risk buffer rate is set at 3% according to Article L. 631-2-1 of the MFC. Hence, the above financial sector entities as defined in Article 1 must maintain a category 1 (CET1) capital buffer, which is calculated by multiplying the exposure to risk from French entities by 3% when they are affiliated with a non-financial group meeting the following cumulative criteria:
1. The total exposure of the subject establishment to the non-financial group of connected clients exceeds 5% of the establishment’s Tier 1 (T1) capital.
2. The debt ratio of the non-financial group at the highest level of consolidation is strictly higher than 6% or is negative.
Article 3 states that this Decision applies to globally systemic important institutions and other systemically important institutions designated by the ACPR based on their consolidated situation, as per the provisions of Article L. 511-41-1 A of the MFC.
According to Article 4, establishments covered by this Decision will be required to comply with a regulatory reporting obligation, details of which are presented in the ACPR instruction concerning the sectoral systemic risk buffer, as defined by the Decision of the HCSF n° D-HCSF-2023-3.
Finally, Article 5 sets the effective date of this Decision is 1 August 2023.