Specifications as to the calculation and monitoring of the threshold

The total value of assets in the Union of a third-country group should be calculated in accordance with Article 21b(5) of Directive 2013/36/EU as the sum of the assets of the EU parent institutions of that group consolidated in accordance with Article 18 of Regulation (EU) No 575/2013 at the highest level of consolidation in the Union plus the individual assets of institutions that are not part of a group subject to consolidated supervision pursuant to Article 111 of Directive 2013/36/EU (“ stand-alone institutions ”) plus the assets of the third-country branches of that group.

For the calculation referred to in the previous paragraph, the following should apply:

• a. Where financial information is available on a quarterly basis in accordance with Part Seven A of Regulation (EU) No 575/2013 and the relevant delegated and implementing acts, that information should be used;
• b. Where financial information is not available on a quarterly basis in accordance with Part Seven A of Regulation (EU) No 575/2013 and the relevant delegated and implementing acts, interim financial information used for supervisory reporting should be used.

The threshold set out in Article 21b(4) of Directive 2013/36/EU should be deemed as reached, where the average of the total value of assets in the Union of a third-country group calculated in accordance with paragraphs 10 and 11 over the previous four quarters, equals or exceeds EUR 40 billion.

By way of derogation from the previous paragraph, for third-country groups operating through more than one institution in the Union as referred to in Article 21b(8) of Directive 2013/36/EU, the threshold should be deemed as reached and the obligation referred to in that Article should be deemed as applicable, where both conditions are met:

• a. The total value of assets in the Union of that group calculated in accordance with paragraphs 10 and 11 on a point-in-time basis as at 27 June 2019 equals or exceeds EUR 40 billion;
• b. On 30 December 2023, the average of the total value of assets in the Union of the group as set out in paragraph 12 equals or exceeds EUR 40 billion.

For the purpose of point (a), where the total value of assets in the Union as at 27 June 2019 is not available, this value should be approximated by taking the total value of assets as at 30 June 2019.

The threshold set out in Article 21b(4) of Directive 2013/36/EU should be deemed as no longer exceeded, where the total value of assets in the Union of a third-country group calculated in accordance with paragraphs 10 and 11 remains below EUR 40 billion for twelve consecutive quarters and there are no reasonable expectations it will increase again above EUR 40 billion.

EU parent institutions and stand-alone institutions that are part of a third-country group should calculate at least on a quarterly basis in accordance with paragraphs 10 and 11 the total value of assets in the Union of the group in its entirety, and assess whether the threshold has been reached, exceeded or not exceeded in accordance with paragraphs 12 to 14 ( “quarterly assessments”). Upon their establishment only the intermediate EU parent undertakings should conduct these calculations and the quarterly assessments.

Until the establishment of the intermediate EU parent undertakings in line with Article 21b(1) or (2) of Directive 2013/36/EU, EU parent institutions and stand-alone institutions that are part of a third-country group should monitor on a forward-looking basis and at least annually the threshold assessed in accordance with these guidelines, against strategic planning and the forecast of assets for the time horizon of at least three years for the group in its entirety (“forward - looking monitoring”).