Decision (EU) 2019/322 (ECB/2019/4)

In force

This text since 26 Sept 2021law://eu/dec/2019/4/art_4@2026-11-12

Contents

Article 4Criteria for the adoption of delegated decisions on acquisitions of holdings#

1.Decisions on the approval of acquisitions of holdings in credit institutions or non-credit institutions by a significant supervised entity shall be taken by means of a delegated decision if all of the following criteria are met:

(a)the impact on the own funds of the acquiring significant supervised entity, on both a consolidated and an individual basis, is limited, which means that:

(i)following the acquisition, the own funds exceed and are estimated to continue exceeding the sum of the requirements laid down in Article 92(1) of Regulation (EU) No 575/2013, the own funds required to be held in accordance with Article 16(2)(a) of Regulation (EU) No 1024/2013, the combined buffer requirement as defined in point (6) of Article 128 of Directive 2013/36/EU and the Pillar 2 capital guidance as set out in the last available SREP decision; and

(ii)the impact of the reduction on the Common Equity Tier 1 capital ratio, the Tier 1 capital ratio and the total capital ratio is below 100 basis points.

(b)the impact on the liquidity situation of the acquiring significant supervised entity is limited, which means that:

(i)the LCR remains above 110 % and is above the liquidity requirements set out in the last available SREP decision, if these are higher than the required minimum LCR;

(ii)at consolidated level, the LCR is not reduced by more than 50 %;

(c)the target entity is located in a Member State of the Union or of the European Economic Area, or in a third country or territory with equivalent supervisory and regulatory standards.

2.The assessment of acquisitions of holdings shall be carried out in accordance with the relevant provisions of national law, also taking into consideration any applicable ECB guides and/or national competent authorities' policy stances, guidance or similar acts.

Source: EUR-Lex, © European Union, 1998-2026. Reuse authorised under Decision 2011/833/EU.

Key facts

Type: Decision · (EU) 2019/322
Adopted: 31 Jan 2019
In force: 17 Mar 2019
Text current to: 26 Sept 2021
Made by: European Central Bank
Official: EUR-Lex 32019D0004 · ELI

Topics

banking supervision decision-making body (EU)EU banking union EU Member State financial supervision national law powers of the institutions (EU)transfer of competence Organisational principles Provisions governing the Institutions Supervisory powers and tasks

History · 1 version

26 Sept 2021Reading
changed by Decision (EU) 2021/1441 (ECB/2021/37)

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Cited by 1: this act2 provisions

Defined terms · 15

Show every defined term

acquisition of a holding
means: (a) the acquisition of a direct or indirect holding of capital or of voting rights in another entity, including as a result of the establishment of a new entity, other than the acquisition of a qualifying holding within the meaning of Article 22 of Directive 2013/36/EU of the European Parliament and of the Council;
branch
means a branch as defined in Article 4(1)(17) of Regulation (EU) No 575/2013;
demerger
means (a) an operation whereby one or more companies split part of their assets and liabilities and form a new company that holds these assets and liabilities, or (b) any transaction that is a demerger under the relevant national law;
heads of work units
means the heads of work units of the ECB to whom the power to adopt national powers decisions is delegated;
liquidity coverage ratio
(LCR) means the ratio as defined in Article 4 of the Commission Delegated Regulation (EU) 2015/61;
merger
means (a) an operation whereby one or more companies, on being dissolved with or without going into liquidation, transfer all of their assets and liabilities to an existing company or a new company, in exchange for the issue to their shareholders of securities or shares representing the capital of that existing company or new company, or (b) any transaction that is a merger under the relevant national law;
negative decision
means a decision that does not or does not fully grant the permission as requested by the significant supervised entity.
non-core support services
means ancillary services supporting the principal business of a credit institution including administrative services, customer services, debt collection services, e-signatures or other similar services;
non-objection procedure
means the procedure set out in Article 26(8) of Regulation (EU) No 1024/2013, and further specified in Article 13g of Decision ECB/2004/2;
regulated entity
means a regulated entity as defined in point (4) of Article 2 of Directive 2002/87/EC of the European Parliament and of the Council;
related party
means a natural person that is related to a credit institution or a close member of that person's family, or a legal person that is related to a credit institution, in accordance with the relevant national law;
representative office
means an office that promotes or assists the activities of a supervised entity but which does not carry out the business of a credit institution;
sensitivity
means a characteristic or factor that may have a negative impact on the ECB’s reputation and/or on the effective and consistent functioning of the Single Supervisory Mechanism, including but not limited to any of the following: (a) the relevant supervised entity has previously been, or is currently, subject to severe supervisory measures such as early intervention measures;
significant supervised entity
means a significant supervised entity as defined in point (16) of Article 2 of Regulation (EU) No 468/2014 of the European Central Bank (ECB/2014/17);
third country or territory
means a country or territory outside the European Economic Area;