126. Competent authorities should be satisfied that the applicant credit institution has a capital …

Competent authorities should be satisfied that the applicant credit institution has a capital implementation plan in place addressing the outstanding amount of capital determined in accordance with section 8.2, which has not been paid up at the time of the authorisation according with paragraphs 123 and 124 and which is destined to cover the activities of the second and the third year. Such a capital implementation plan should indicate the type of funding sources and the timing of capital injections in order to avoid a potential failure to meet business objectives and a potential incurrence of losses affecting compliance with minimum capital requirements by the credit institution. The type of funding sources – such as shareholders’ private financial resources, financial instruments issued or to be issued in the financial markets and any agreements and contracts entered into in respect of own funds – should be carefully reviewed with the aim of ensuring that they are of legitimate origin and, based on their terms and conditions, will be promptly available.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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