56. Where, based on the information submitted with the application, it is not completely clear that …

Where, based on the information submitted with the application, it is not completely clear that conducting business as a credit institution is the applicant credit institution’s actual business intention, competent authorities should increase the level of scrutiny of the application. This is particularly the case where they detect limited or formal compliance with the individual components of the definition of a credit institution.

In such circumstances competent authorities should examine the applicant credit institution’s possible additional business motives supporting the submission of the application, such as the benefits deriving from the status of credit institution in terms of reputation, access to payment and settlement systems and cheaper funding. Competent authorities should, among other things, put particular emphasis on the level of risk of the intended activities and the viability of the business model, having also regard, among other things, to the potential negative effects on the deposit guarantee schemes and the amount and quality of collateral stored at the central banks.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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