behavioural interest rate option

Defined in Article 1, Commission Delegated Regulation (EU) 2024/857

Definitions over time (2)

1. 17/07/2025 – today applies on 12/11/2026 Article 1, Commission Delegated Regulation (EU) 2024/857 Scope: Whole act

   For the purposes of this Regulation, the following definitions apply:

   ‘behavioural interest rate option’ means an option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No 575/2013, including an option under which the institution is likely to provide its counterparty with a pay-out irrespective of a contractual obligation, and that complies with all of the following: the pay-outs of the options are interest rate sensitive; the exercise of the option is not purely driven by the monetary incentive of the counterparty but is dependent on that counterparty’s behaviour;

2. 24/04/2024 – 14/05/2024 Article 1, Commission Delegated Regulation (EU) 2024/857 Scope: Whole act

   For the purposes of this Regulation, the following definitions apply:

   ‘behavioural interest rate option’ means an option as referred to in Article 325e(2), second subparagraph, of Regulation (EU) No 575/2013, including an option under which the institution is likely to provide its counterparty with a pay-out irrespective of a contractual obligation, and that complies with all of the following: the pay-outs of the options are interest rate sensitive; the exercise of the option is not purely driven by the monetary incentive of the counterparty but is dependent on that counterparty’s behaviour;

Used in (2 places in 2 provisions on 12/11/2026)

Commission Delegated Regulation (EU) 2024/857 (2 in 2)

Article 1 · Article 5