- ancillary services undertaking
means ancillary services undertaking as defined in point (18) of Article 4(1) of Regulation (EU) No 575/2013;
- asset management company
means asset management company as defined in point (19) of Article 4(1) of Regulation (EU) No 575/2013;
- authorisation
means authorisation as defined in point (42) of Article 4(1) of Regulation (EU) No 575/2013;
- branch
means branch as defined in point (17) of Article 4(1) of Regulation (EU) No 575/2013;
- buffer guide
means a benchmark buffer rate calculated in accordance with Article 135(1).
- capital conservation buffer
means the own funds that an institution is required to maintain in accordance with Article 129;
- central banks
means central banks as defined in point (46) of Article 4(1) of Regulation (EU) No 575/2013;
- central counterparty
means central counterparty as defined in point (34) of Article 4(1) of Regulation (EU) No 575/2013;
- chief financial officer
means the person with overall responsibility for the financial resources management, financial planning and financial reporting of an institution;
- climate neutrality
means the overall objective of achieving climate neutrality by 2050 as set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council;
- close links
means close links as defined in point (38) of Article 4(1) of Regulation (EU) No 575/2013;
- combined buffer requirement
means the total Common Equity Tier 1 capital required to meet the requirement for the capital conservation buffer extended by the following, as applicable:
- competent authority
means competent authority as defined in point (40) of Article 4(1) of Regulation (EU) No 575/2013;
- consolidated basis
means consolidated basis as defined in point (48) of Article 4(1) of Regulation (EU) No 575/2013;
- consolidated situation
means consolidated situation as defined in point (47) of Article 4(1) of Regulation (EU) No 575/2013;
- consolidating supervisor
means consolidating supervisor as defined in point (41) of Article 4(1) of Regulation (EU) No 575/2013;
- control
means control as defined in point (37) of Article 4(1) of Regulation (EU) No 575/2013;
- countercyclical buffer rate
means the rate that institutions must apply in order to calculate their institution-specific countercyclical capital buffer, and that is set in accordance with Article 136, Article 137 or by a relevant third-country authority, as the case may be;
- credit institution
means credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013;
- credit risk mitigation
means credit risk mitigation as defined in point (57) of Article 4(1) of Regulation (EU) No 575/2013;
- crypto-asset
means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council that is not a central bank digital currency.
- discretionary pension benefits
means discretionary pension benefits as defined in point (73) of Article 4(1) of Regulation (EU) No 575/2013;
- division
means any of the following:
- domestically authorised institution
means an institution that has been authorised in the Member State for which a particular designated authority is responsible for setting the countercyclical buffer rate;
- eligible capital
means eligible capital as defined in Article 4(1), point (71), of Regulation (EU) No 575/2013;
- external credit assessment institution
means external credit assessment institution as defined in point (98) of Article 4(1) of Regulation (EU) No 575/2013;
- financial holding company
means financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;
- financial institution
means financial institution as defined in point (26) of Article 4(1) of Regulation (EU) No 575/2013;
- financial instrument
means financial instrument as defined in point (50) of Article 4(1) of Regulation (EU) No 575/2013;
- financial sector entity
means financial sector entity as defined in point (27) of Article 4(1) of Regulation (EU) No 575/2013;
- gender neutral remuneration policy
means a remuneration policy based on equal pay for male and female workers for equal work or work of equal value;
- group
means a group as defined in point (138) of Article 4(1) of Regulation (EU) No 575/2013;
- heads of internal control functions
means the persons at the highest hierarchical level responsible for effectively managing the day-to-day operation of the internal control functions of an institution;
- home Member State
means home Member State as defined in point (43) of Article 4(1) of Regulation (EU) No 575/2013;
- host Member State
means host Member State as defined in point (44) of Article 4(1) of Regulation (EU) No 575/2013;
- institution
means institution as defined in point (3) of Article 4(1) of Regulation (EU) No 575/2013;
- institution-specific countercyclical capital buffer
means the own funds that an institution is required to maintain in accordance with Article 130;
- insurance undertaking
means insurance undertaking as defined in point (5) of Article 4(1) of Regulation (EU) No 575/2013;
- internal approaches
means the internal ratings based approach referred to in Article 143(1), the internal model approach referred to in Article 221, the internal model method referred to in Article 283, the alternative internal model approach referred to in Article 325az, and the internal assessment approach referred to in Article 265(2), of Regulation (EU) No 575/2013;
- internal control functions
means risk management, compliance and internal audit functions;
- investment firm
means investment firm as defined in point (2) of Article 4(1) of Regulation (EU) No 575/2013;
- key function holders
means the persons who have significant influence over the direction of an institution but are not members of the management body, including the heads of internal control functions and the chief financial officer, where those heads or that officer are not members of the management body;
- large institution
means large institution as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013;
- leverage
means leverage as defined in point (93) of Article 4(1) of Regulation (EU) No 575/2013;
- local firm
means local firm as defined in point (4) of Article 4(1) of Regulation (EU) No 575/2013;
- management body
means an institution’s body or bodies, which are appointed in accordance with national law, which are empowered to set the institution’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the institution;
- management body in its management function
means the management body acting in its role of directing an institution and includes the persons who effectively direct the business of the institution;
- management body in its supervisory function
means the management body acting in its role of overseeing and monitoring management decision-making;
- merger
means any of the following operations whereby:
- mixed activity holding company
means mixed activity holding company as defined in point (22) of Article 4(1) of Regulation (EU) No 575/2013;
- mixed financial holding company
means mixed financial holding company as defined in point (21) of Article 4(1) of Regulation (EU) No 575/2013;
- model risk
means model risk as defined in Article 4(1), point (52b), of Regulation (EU) No 575/2013;
- non-EU G-SII
means a non-EU G-SII as defined in point (134) of Article 4(1) of Regulation (EU) No 575/2013;
- operational risk
means operational risk as defined in point (52) of Article 4(1) of Regulation (EU) No 575/2013;
- originator
means originator as defined in point (13) of Article 4(1) of Regulation (EU) No 575/2013;
- own funds
means own funds as defined in point (118) of Article 4(1) of Regulation (EU) No 575/2013;
- parent financial holding company in a Member State
means parent financial holding company in a Member State as defined in point (30) of Article 4(1) of Regulation (EU) No 575/2013;
- parent institution in a Member State
means parent institution in a Member State as defined in point (28) of Article 4(1) of Regulation (EU) No 575/2013;
- parent mixed financial holding company in a Member State
means parent mixed financial holding company in a Member State as defined in point (32) of Article 4(1) of Regulation (EU) No 575/2013;
- parent undertaking
means parent undertaking as defined in point (15) of Article 4(1) of Regulation (EU) No 575/2013;
- participation
means participation as defined in point (35) of Article 4(1) of Regulation (EU) No 575/2013;
- periodic penalty payment
means a periodic pecuniary enforcement measure aimed at ending ongoing breaches of national provisions transposing this Directive, breaches of Regulation (EU) No 575/2013 or breaches of decisions taken by a competent authority on the basis of those provisions or that Regulation and compelling the natural or legal person to return to compliance with the infringed provisions or decisions;
- qualifying holding
means qualifying holding as defined in point (36) of Article 4(1) of Regulation (EU) No 575/2013;
- regulated market
means regulated market as defined in point (92) of Article 4(1) of Regulation (EU) No 575/2013;
- reinsurance undertaking
means reinsurance undertaking as defined in point (6) of Article 4(1) of Regulation (EU) No 575/2013;
- resolution authority
means a resolution authority as defined in point (18) of Article 2(1) of Directive 2014/59/EU of the European Parliament and of the Council;
- risk of excessive leverage
means risk of excessive leverage as defined in point (94) of Article 4(1) of Regulation (EU) No 575/2013;
- securitisation
means securitisation as defined in point (61) of Article 4(1) of Regulation (EU) No 575/2013;
- securitisation position
means securitisation position as defined in point (62) of Article 4(1) of Regulation (EU) No 575/2013;
- securitisation special purpose entity
means securitisation special purpose entity as defined in point (66) of Article 4(1) of Regulation (EU) No 575/2013;
- senior management
means those natural persons who exercise executive functions within an institution and are directly accountable to the management body but are not members of that body, and who are responsible for the day-to-day management of the institution under the direction of the management body;
- sponsor
means sponsor as defined in point (14) of Article 4(1) of Regulation (EU) No 575/2013;
- stand-alone institution in the Union
means an institution that is not subject to prudential consolidation in the Union pursuant to Part One, Title II, Chapter 2, of Regulation (EU) No 575/2013, and that has no EU parent undertaking subject to such prudential consolidation;
- sub-consolidated basis
means sub-consolidated basis as defined in point (49) of Article 4(1) of Regulation (EU) No 575/2013;
- subsidiary
means subsidiary as defined in point (16) of Article 4(1) of Regulation (EU) No 575/2013;
- supervisory powers
means the powers referred to in Article 104(1) or the power to specify modelling and parametric assumptions, other than those identified by EBA pursuant to point (b) of paragraph 5a of this Article, to be reflected by institutions in their calculation of the economic value of equity under Article 84(1).
- systemic risk
means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy;
- systemic risk buffer
means the own funds that an institution is or may be required to maintain in accordance with Article 133;
- systemically important institution
means an EU parent institution, an EU parent financial holding company, an EU parent mixed financial holding company or an institution the failure or malfunction of which could lead to systemic risk;
- third-country group
means a group of which the parent undertaking is established in a third country;
- trading book
means trading as defined in point (86) of Article 4(1) of Regulation (EU) No 575/2013;