{
  "url": "https://openlegislation.uk/eu-decision-2010-606/annex-I/division-1/division-3",
  "json_url": "https://openlegislation.uk/eu-decision-2010-606/annex-I/division-1/division-3.json",
  "legislation": "eudn/2010/606",
  "legislation_title": "Commission Decision of 26 February 2010 on State aid C 9/09 (ex NN 49/08, NN 50/08 and NN 45/08) implemented by the Kingdom of Belgium, the French Republic and the Grand Duchy of Luxembourg for Dexia SA (notified under document C(2010) 1180) (Only the French text is authentic) (Text with EEA relevance) (2010/606/EU)",
  "legislation_url": "https://openlegislation.uk/eu-decision-2010-606",
  "path": "annex/I/division/1/division/3",
  "kind": "division",
  "number": "3",
  "heading": null,
  "text": "(a) Dexia shall refrain from lending to its PWB customers at a level of risk-adjusted return on capital (‘RAROC’) below 10 %. The RAROC shall be calculated as the ratio between the net margin after tax and the economic capital. Within the meaning of this commitment letter:\n(i) the gross margin is the difference between the margin invoiced to the customer (expressed in basis points above the IBOR reference rate) and Dexia’s funding cost (expressed in basis points above the IBOR reference rate) represented by the internal transfer price;\n(ii) the internal transfer price will reflect the estimated cost of Dexia’s new funding, taking account of the characteristics (maturity, eligibility for funding by covered bonds, etc.) of the loans to PWB customers;\n(iii) the net margin is equal to the gross margin less (i) costs of all kinds (overheads, salary costs, operating costs, amortisation and depreciation, etc.) estimated on the basis of the observation of the costs of lending to PWB customers, (ii) cost of average risk calculated for each transaction in accordance with the Basel II methodology (cost of average risk over a long period) and (iii) a tax charge. The economic capital is calculated in accordance with the Basel II methodology.\n(b) An independent expert shall be appointed, in accordance with the terms and conditions set out under point 17 below, to verify every six months that:\n(i) the RAROC within the meaning of this commitments letter and its components (costs of new funding, overheads, wage costs, operating expenses, amortisation and depreciation, cost of risk, tax charge, etc.) reflects the contribution of the activity of lending to PWB customers to the profitability of the group;\n(ii) The calculation of the RAROC is correct; and\n(iii) The methodology is respected.\n(c) The independent expert shall verify every six months that the commitment entered into under point 3(a) is respected.\n(d) The independent expert shall have access to Dexia’s internal rules of procedure, specifying and generalising the use of the RAROC (within the meaning of this commitments letter) and to the list and conditions of each loan granted by Dexia to its PWB customers.",
  "extent": "E+W+S+N.I.",
  "status": null,
  "version": "current",
  "annotations": [],
  "outstanding_effects": [],
  "provenance": {
    "source": "legislation.gov.uk",
    "source_url": "https://www.legislation.gov.uk/eudn/2010/606/annex/I/division/1/division/3",
    "retrieved_at": "2026-11-01T15:16:00.296415+00:00"
  },
  "licence": "Open Government Licence v3.0",
  "licence_url": "https://www.nationalarchives.gov.uk/doc/open-government-licence/version/3/",
  "attribution": "Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives."
}