Article 6 Fee Payable for the Granting of a Credit Line

1.

An institution shall pay a fee established by the central bank. The fee shall be made up of two components for the credit line referred to in Article 5(2) and shall ensure that there is no economic advantage or disadvantage arising from the application of the derogation provided for in Article 419(2)(b) of CRR, when compared to institutions which do not apply the derogation.

2.

The fee to be paid by an institution for the credit line shall be the sum of the following components:

  1. (a) an amount which is based on the amount of the credit line drawn down;
  2. (b) an amount which approximates the difference between the following:
    1. (i) the yield on the assets used to secure the credit line;
    2. (ii) the yield on a representative portfolio of assets of the type provided for in points (a) to (d) of Article 416(1) of CRR.

The amount referred to in point (b) of the first subparagraph may be adjusted to take into account any material differences in credit risk between the sets of assets referred to in that point.

[Note: This rule corresponds to Article 6 of Regulation (EU) No 2016/709 as it applied immediately before revocation by the Treasury]