Title III, Chapter II, Section 2, Section 3, Article 38, Paragraph 1. · Commission Delegated Regulation (EU) 2017/390

Contents

1.For the purposes of point (e) of Article 59(4) of Regulation (EU) No 909/2014 creditworthy financial institutions shall include one of the following:

(a)a credit institution authorised in accordance with Article 8 of Directive 2013/36/EU that the CSD-banking service provider can demonstrate to have low credit risk based on an internal assessment, employing a defined and objective methodology that does not exclusively rely on external opinions;

(b)a third country financial institution that meets all of the following requirements:

(i)it is subject to and complies with prudential rules considered to be at least as stringent as those set out in Directive 2013/36/EU and Regulation (EU) No 575/2013;

(ii)it has robust accounting practices, safekeeping procedures, and internal controls;

(iii)it has low credit risk based on an internal assessment carried out by the CSD-banking service provider, employing a defined and objective methodology that does not exclusively rely on external opinions;

(iv)it takes into consideration the risks arising from the establishment of that third country financial institution in a particular country.