Capital Requirements Regulation: transitional arrangements for mitigating the impact of the introduction of IFRS 9 on own funds and the large exposures treatment of certain public sector exposures denominated in non-domestic currencies of Member States

This proposal amends the Capital Requirements Regulation to set transitional arrangements mitigating the impact of IFRS 9 on own funds and to treat certain public sector exposures denominated in non-domestic currencies of Member States. The amendments debate the IFRS 9 phase-in period, whether its application increases or decreases capital ratios (citing the Basel Committee and EBA), whether it should be optional or mandatory, and the treatment of SME exposures.