Article 68
Deduction of holdings of Tier 2 instruments of financial sector entities and where an institution has a reciprocal cross holding designed artificially to inflate own funds
Institutions shall make the deductions required by points (b), (c) and (d) of Article 66 in accordance with the following provisions:
(a)
holdings of Tier 2 instruments shall be calculated on the basis of the gross long positions;
(b)
holdings of Tier 2 own-fund insurance items and Tier 3 own-fund insurance items shall be treated as holdings of Tier 2 instruments for the purposes of deduction.