CRR: CAP30.23(4) vs CRR Art 72j(1)

Article 72j(1) CRR permits no deduction at exactly 5%, whereas Basel Framework CAP30.23(4) requires holdings to be less than 5%. The CRR does not provide discretion over this boundary.

Consequence

Position: G-SIB/G-SII, CET1 1000, designated trading-book holdings of other G-SIBs' TLAC instruments, aggregate exactly 50 (5.0%) Reading a: Basel CAP30.23(4): 50 is not less than 5% — condition fails, deduction 50 from Tier 2 Reading b: CRR Art 72j(1): 50 is equal to 5% — not deducted (0) Difference: Tier 2 deduction 50

Proposed correction

Confirm whether the boundary at exactly 5% in Article 72j(1) is intended.

Jurisdiction

European Union

Act

Regulation (EU) No 575/2013 (CRR)

Place

CAP30.23(4) vs CRR Art 72j(1)

Record

Discrepancy

Class

Programs and services

Where it arose

The text of the act

Arxo's conclusion

Confirmed

Official text

Unchanged at last check

Last checked

2026-10-31

Evidence

Reproduced by execution. Quotations are verbatim from the official material; translations are ours and marked.

Such holdings are, in aggregate and on a gross long basis, less than 5% of the G-SIB’s common equity

that in aggregate and measured on a gross long basis is equal to or less than 5 % of the Common Equity Tier 1 items of the institution

How to check it without Arxo's tools

1. Open Basel Framework CAP30 (in force 2019-12-15, published 2019-12-15) and find CAP30.23(4) vs CRR Art 72j(1). Compare the text with the quotation above. A copy is kept in this register: ab96c0ecb89252e7-CAP30@2019-12-15~2019-12-15.txt (SHA-256 ab96c0ecb89252e77768ab38fb4c7ffe7f84dc216571074674dde92e8afc7b4d, copy of the official file).
2. Open Regulation (EU) No 575/2013, Article 72j (consolidated 1 January 2027) and find Article 72j(1). Compare the text with the quotation above. A copy is kept in this register: 7edd181ec6fa53b2-art_72j.txt (SHA-256 7edd181ec6fa53b21f515986cc7664a92c2eb72cd9ae1910d14dad9f9cba9145, copy of the official file).
3. The finding holds if the quoted passages read as shown and the comparison gives the result stated at the top of this page. If it does not, write to us with the record ID.

How this finding was made

AI models read the texts, built the examples and reviewed the findings.

Responsible institutions

• European Commission, DG FISMA — responsible for EU banking regulation

Reported to

Responses

No response recorded.

History

1. 2026-10-31Confirmed by Arxo
2. 2026-10-31Entered in the register
3. 2026-10-31Reported to European Commission, DG FISMA (e-mail)

Cite this record

Arxo Law, Arxo Findings Register, ARXO-2026-0400, https://arxo.io/findings/ARXO-2026-0400/ (status as of 2026-10-31). Data: ARXO-2026-0400.json.