+Guidelines on the authorisation of credit institutions (EBA/GL/2021/12)
---+1. Compliance and reporting obligations
------+Status of these Guidelines
---------+1. This document contains Guidelines issued pursuant to Article 16 of Regulation (EU) No 1093/2010 …
---------+2. Guidelines set out the EBA view of appropriate supervisory practices within the European System …
------+Reporting requirements
---------+3. According to Article 16(3) of Regulation (EU) No 1093/2010, competent authorities must notify …
---------+4. Notifications will be published on the EBA website, in line with Article 16(3).
---+2. Subject matter, scope and definitions
------+Subject matter
---------+5. These Guidelines specify a common assessment methodology (‘CAM’) for granting authorisations in …
------+Scope of application
---------+6. These Guidelines apply to all cases where, in accordance with Directive 2013/36/EU, as …
------+Addressees
---------+7. These Guidelines are addressed to competent authorities as defined in Article 4(2)(i) of …
------+Definitions
---------+8. Unless otherwise specified, terms used and defined in the CRR, in the CRD, in Regulation …
---------+9. In addition, for the purposes of these Guidelines, the following definitions apply: The …
---+3. Implementation
------+Date of application
---------+10. These Guidelines apply from 08.04.2022.
---+4. General principles
------+4.1 Common assessment methodology
---------+11. Competent authorities should ensure that for the purposes of granting an authorisation as a …
---------+12. The CAM lays down the criteria and methods according to which competent authorities should …
---------+13. For the purposes of these Guidelines, references to risk also include ML/TF risk. Competent …
---------+14. In order to ensure that the assessment for granting the authorisation is based on reliable …
---------+15. The CAM is technology-neutral and innovation-friendly, therefore it covers applicant credit …
---------+16. In order to ensure a level playing field across the EU, competent authorities’ assessment …
---------+17. Competent authorities should perform the assessment for granting the authorisation in …
---------+18. For this purpose competent authorities should take into account the following criteria: a) the …
---------+19. In the case of paragraph 18, letter m), and in line with Article 10(1) of the RTS on …
---------+20. In the case of paragraph 18, letter n), provided the submitted extension does not materially …
---------+21. The application of the principle of proportionality by the competent authorities can never …
------+4.2 Consistency and continuity between the authorisation and the going-concern supervisory assessment
---------+22. In accordance with the CAM, competent authorities should assess the application for …
---------+23. For this purpose, in order to avoid duplication and inconsistency of regulation, these …
---------+24. Competent authorities’ assessment should focus on ensuring the sound and prudent management of …
---------+25. To ensure that this objective is met, competent authorities should only grant the authorisation …
---------+26. Competent authorities may, at their own discretion, impose on the applicant credit institution …
---------+27. Consistently with paragraph 26, competent authorities may only apply conditions precedent …
---------+28. In accordance with the requirements and the limits set out in paragraphs 26 and 27, conditions …
---------+29. Consistently with paragraph 26, competent authorities may impose obligations subsequent on the …
---------+30. Without prejudice to the compliance with all the requirements for authorisation by the …
---------+31. In order to ensure clarity and legal certainty, competent authorities should clearly define …
---------+32. Subject to the meeting of all the requirements for granting the authorisation, competent …
---------+33. Where the applicant credit institution belongs to a banking group and compliance with …
---------+34. Competent authorities should identify the existence of any obstacles, having regard in …
------+4.3 Situations where an authorisation is required
---------+35. Competent authorities should ensure that in the case of a merger of two or more credit …
---------+36. The execution of group restructuring transactions or the transfer of activities as a credit …
---------+37. Where competent authorities assess that, by virtue of the activities that are temporarily …
---------+38. Without prejudice to the paragraph above, competent authorities should not subject the transfer …
---------+39. Competent authorities should clarify that an authorisation to carry on the business of a credit …
---------+40. Considering that the authorisation is granted by competent authorities under the applicable …
---------+41. Consistently with the applicable national company law, an existing credit institution may …
---+5. Authorisation as credit institution under letter (a), point (1) of Article 4(1) CRR and its scope
------+5.1 Activities requiring the application for an authorisation
---------+42. Pursuant to Directive 2013/36/EU, the protection of savings and of financial stability requires …
---------+43. Competent authorities should assess that the applicant meets all the elements of the definition …
---------+44. This is without prejudice to the possibility for a credit institution to carry out activities …
---------+45. Where competent authorities assess that the business model of the applicant credit institution …
---------+46. Absent a common EU notion of the elements composing the definition of a credit institution set …
---------+47. When assessing whether the expression ‘the business of which’ is met, competent authorities …
---------+48. Pursuant to the general principle of protection of savings, when assessing whether the …
---------+49. When assessing whether the expression ‘deposits’ is met, competent authorities should focus …
---------+50. Competent authorities should also note that deposits may take several forms, they may be …
---------+51. Competent authorities should also ensure, among other things, that the exclusions to the notion …
---------+52. When assessing whether the specific expression ‘other repayable funds’ is met, competent …
---------+53. When assessing whether the deposits or other repayable funds are taken ‘from the ‘public’ …
---------+54. When assessing whether the expression ‘to grant credit’ is met, competent authorities should …
---------+55. As part of the assessment for granting the authorisation as a credit institution, competent …
---------+56. Where, based on the information submitted with the application, it is not completely clear that …
------+5.2 Scope of the authorisation
---------+57. Absent a uniform scope of authorisation set out in EU law, different regimes may be in place at …
---------+58. Conversely, where no such ‘universal authorisation’ is in place, the authorisation will be …
---------+59. In both cases covered by paragraphs 57 and 58, however, the competent authorities’ scope of …
---+6. CAM for authorisation as credit institution under letter (b) of point (1) of Article 4(1) CRR
------+60. In accordance with Article 8a CRD, undertakings meeting one of the conditions set out in point …
------+61. For that purpose, the concerned undertakings have to submit an application to the competent …
------+62. Competent authorities should review such information in light of the requirements of …
------+63. To review and assess the application, competent authorities should apply all sections of these …
------+64. With a view to streamlining the assessment in accordance with Article 8a(5) CRD, competent …
------+65. Competent authorities should ensure that the applicant credit institution will be compliant …
------+66. For the purposes of the assessment of the business plan, competent authorities should apply the …
---+7. Business plan analysis
------+7.1 General criteria
---------+67. The competent authorities’ assessment of the business plan should be based on the relevant …
---------+68. Consistently with paragraph 13, competent authorities should assess the exposure to ML/FT risks …
---------+69. Consistently with the principles set out in paragraphs 15 and 16, competent authorities should …
---------+70. Competent authorities should calibrate the intensity of their assessment in light of the …
---------+71. As a general criterion, competent authorities should perform the qualitative and quantitative …
---------+72. Without prejudice to paragraph 71, in order to support the business plan assessment and to the …
---------+73. To ensure supervisory continuity between the authorisation phase and ongoing supervision of the …
------+7.2 Assessment methodology
---------+74. Competent authorities should undertake a qualitative review of the business strategy of the …
---------+75. For this purpose, competent authorities should achieve a clear view on: (a) the types of …
---------+76. With specific regard to innovative business models and/or delivery mechanisms, competent …
---------+77. A clear understanding of the planned business strategy will allow the competent authorities to …
---------+78. Competent authorities should achieve a clear view on the planned sources to finance the planned …
---------+79. Competent authorities should perform a more intense assessment, including detailed questions …
---------+80. Funding costs should be assessed in the context of the assessment of the financial forecast …
---------+81. The competent authorities should review the submitted information, in particular as set out in …
---------+82. Competent authorities should review the submitted information in particular as set out in …
---------+83. Consistently with the proportionality approach set out in paragraph 70, competent authorities …
---------+84. Where relevant, competent authorities should ensure that the submitted description of the …
---------+85. In the assessment of risks to liquidity and funding, competent authorities should verify the …
---------+86. To form a view on the plausibility of an institution’s strategic assumptions, competent …
---------+87. Consistently with the proportionality approach set out in paragraph 70, competent authorities …
---------+88. For this purpose, competent authorities should review the analysis of the trends in the target …
---------+89. Where appropriate and on a case-by-case analysis, reference to existing players and potential …
---------+90. Consistently with the proportionate approach set out in paragraph 71 and on a case-by-case …
---------+91. In this regard, the areas for analysis by competent authorities should include the main …
---------+92. Competent authorities should also assess whether the financial forecasts match the business …
---------+93. Competent authorities should perform a quantitative review of the applicant credit …
---------+94. The purpose of the quantitative review of the financial forecasts of the business plan should …
---------+95. The assessment of the financial forecasts should reflect the applicant credit institution’s …
---------+96. When assessing the profitability of the business plan, competent authorities should pay special …
---------+97. For these purposes, competent authorities should review the explanation of the initial …
---------+98. Competent authorities may need to assess a business plan with a longer time horizon, for …
---------+99. To the extent possible and where appropriate, competent authorities should determine a relevant …
---------+100. Competent authorities should consider assessing profitability trends and ratios, having regard …
---------+101. Competent authorities should be able to gain a clear understanding of the institution’s …
---------+102. Consistently with the principle of proportionality set out in paragraph 70, competent …
---------+103. Competent authorities should gain a clear understanding of the various revenue models (e.g. …
---------+104. Competent authorities should pay particular attention to high growth rates and associated risk …
---------+105. The target cost structure (e.g. labour, administrative or IT costs) should be reviewed in …
---------+106. With specific regard to cost models, applicant credit institutions significantly relying on …
---------+107. Based on the business plan and financial projections provided, the competent authorities …
---------+108. Based on the reviewed information, the competent authority should challenge the applicant …
---------+109. The development of the supervisory view and the sensitivity analysis should be subject to …
---+8. Capital
------+8.1 General criteria
---------+110. The determination of the level of capital should aim at ensuring the authorised credit …
---------+111. For the purposes of granting the authorisation, the level of capital should be determined …
---------+112. For the purposes of the CAM, the initial capital is a fixed amount set out in national law in …
---------+113. The own funds requirements are risk-based and leverage-based capital requirements in …
---------+114. Irrespective of the differences across the EU relating to the absolute value of initial …
---------+115. The determination of the level of capital at authorisation and the amount to be paid up at …
------+8.2 Determination of the level of the capital
---------+116. For the purpose of determining the level of the capital, competent authorities should: (a) …
---------+117. Where the competent authority is the consolidated supervisor, it should assess the expected …
---------+118. If an applicant belonging to a banking group applies for capital waivers in accordance with …
---------+119. Where the competent authority, in the exercise of its discretion, considers itself to be in a …
---------+120. Where the competent authority considers that the capital waiver cannot be granted at the time …
------+8.3 Quality, payment and availability of capital
---------+121. The competent authority should verify the adequacy of the capital determined in accordance …
---------+122. Competent authorities should verify that the credit institution’s capital is separated from …
---------+123. The portion of the capital level to be paid up in full prior to granting the authorisation is …
---------+124. Competent authorities should verify and review through adequate evidence that the portion of …
---------+125. Without prejudice to the above, in those jurisdictions where the portion of the capital …
---------+126. Competent authorities should be satisfied that the applicant credit institution has a capital …
---+9. Internal governance
------+9.1 General criteria
---------+127. Competent authorities should perform a careful and comprehensive review of the arrangements …
---------+128. The CAM laid down herein aims to guide the competent authorities’ assessment of the …
---------+129. For the purposes of this section, and consistently with paragraph 13, the governance …
---------+130. Competent authorities should achieve a comprehensive understanding of how the credit …
---------+131. Competent authorities should be satisfied that the application documents envisage …
---------+132. The intensity of the competent authorities’ assessment of internal governance requirements …
---------+133. The assessment should be based on the documents and information submitted by the applicant …
------+9.2 Management body
---------+134. The Guidelines intend to embrace all existing board structures and do not advocate any …
---------+135. Competent authorities should review the application, in particular the articles of association …
---------+136. In accordance with Article 46(4) of Directive 2015/849 (AMLD), competent authorities should …
---------+137. In accordance with Article 13(1), second sub-paragraph, CRD competent authorities should …
---------+138. Where applicable, competent authorities should also subject to a suitability assessment the …
---------+139. Such a suitability assessment should be performed in compliance with the EBA and ESMA …
------+9.3 Organisational structure
---------+140. Competent authorities should verify that the credit institution’s organisational structure …
---------+141. Competent authorities should carefully assess whether the submitted organisational structure – …
---------+142. For the purposes of granting the authorisation or of commencing the activities as the case may …
---------+143. Competent authorities should pay specific attention to avoiding the setting up of …
---------+144. When the business plan envisages the setting up of structures in other jurisdictions …
---------+145. Competent authorities should verify that the terms of reference of the management body …
---------+146. Consistently with Article 5(1), letter c) n. (ii), fifth indent of the RTS on information for …
---------+147. Competent authorities should verify that the outline of the conflicts of interest policy makes …
---------+148. With regard to conflicts of interest at the institution’s level, competent authorities should …
---------+149. As to conflicts of interest at the staff level, competent authorities should be satisfied that …
---------+150. Competent authorities’ review of the outlines of the whistleblowing policy should ensure that …
---------+151. Competent authorities should be satisfied that the outline of the policy covers the process …
---------+152. Competent authorities’ review of the outline of the market abuse policy should ensure the …
---------+153. Competent authorities should verify that, in line with the EBA Guidelines on product oversight …
---------+154. Competent authorities’ review of the outline of the consumer protection policy should aim at …
---------+155. Competent authorities’ review of the outlines of the complaints handling policy should aim at …
------+9.4 Internal control framework
---------+156. Competent authorities should assess whether the applicant credit institution has an …
---------+157. Competent authorities should review the application documents and be satisfied that the …
---------+158. Competent authorities should achieve a clear view that the internal control framework covers …
---------+159. For this purpose, competent authorities should verify that arrangements are in place to ensure …
---------+160. The risk management function and the compliance function, the second line of defence, together …
---------+161. To ensure that the internal control functions comply with independence requirements …
---------+162. Competent authorities should verify that the heads of the internal control functions fulfil …
---------+163. To ensure that internal control functions can be effectively exercised, competent authorities …
---------+164. Competent authorities should be satisfied that, as part of the internal control framework, the …
---------+165. Competent authorities should be satisfied that the risk management function (RMF) will …
---------+166. In respect of the RMF role in the risk strategy and decision-making, competent authorities’ …
---------+167. In respect of the RMF’s role in the evaluation of material changes, competent authorities …
---------+168. As regards the RMF’s role in identifying, measuring, monitoring, mitigating and reporting risk …
---------+169. The RMF’s role should also include the independent assessment of breaches of risk appetite or …
---------+170. In respect of the outline of the remuneration policy, in addition to assessing compliance with …
---------+171. In particular, they should assess whether: a) the outline of the remuneration policy is in …
---------+172. Competent authorities should verify that it is envisaged that the compliance function will …
---------+173. The compliance function should ensure that compliance monitoring is carried out through a …
---------+174. Competent authorities should also check that the compliance function will be entrusted with …
---------+175. Competent authorities should verify that an AML/CTF compliance function for compliance with …
---------+176. Competent authorities should verify that the AML/CTF policy, submitted by the applicant credit …
---------+177. Competent authorities should verify that the outline covers all elements set out in Article …
---------+178. Competent authorities, taking into account the proportionality criteria set out in paragraphs …
---------+179. For this purpose, competent authorities should assess whether the IAF has its organisational …
---------+180. Competent authorities should also assess whether the IAF is entrusted with at least the …
---------+181. They should also verify that the outline of the methodology and internal audit plan covering …
---------+182. The outlines of the business continuity policy and plan should ensure that the applicant will …
---------+183. Competent authorities should assess whether the ICT policy will provide the credit institution …
---------+184. With regard to ICT and security risk , competent authorities should be satisfied that the …
---+10. Qualifying holdings and members
------+185. For the purposes of Article 14(1) CRD, competent authorities should examine the information …
------+186. For the purposes of Article 14(2) CRD, competent authorities should assess the compliance of …
---+Annex – Figures on determination of capital at authorisation and amount to be paid up
------+Figure 1. The own funds requirement is higher than the initial capital
------+Figure 2. Initial capital under national law is higher than the own funds requirement
------+Figure 3. Change in the higher amount in the course of the three-year plan
|
English -
European Union -
Financial Industry -
Guidelines on the authorisation of credit institutions (EBA/GL/2021/12)
Guidelines on the authorisation of credit institutions (EBA/GL/2021/12) https://www.eba.europa.eu/activities/single-rulebook/regulatory-activities/market-access/guidelines-authorisation-credit-institutions – PDF
1. Overview
1.1 References
1.2 Identified Requirements
1.3 Related Standards
2. Identified Requirements
Requirements
| Source |
Requirement |
3. Related Standards
Standards
| Source |
Requirement |
Linked Issues
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
|