The number of significant institutions that will be directly supervised by ECB from January 01, 2019 stands at 119. The updates are a result of the annual review of significance and ad hoc assessments. The list of banks that are directly supervised by ECB reflects a cut-off date of December 14, 2018.
Barclays Bank Ireland has been newly classified as significant and will be directly supervised by ECB from January 01, 2019. This follows a request by the Central Bank of Ireland, which anticipates an expansion of the bank’s activities due to Brexit. Meanwhile, Permanent tsb Group Holdings plc is no longer on the list of banks directly supervised by ECB after not meeting any of the significance criteria for three consecutive calendar years. The Central Bank of Ireland will start supervising the bank as of January 01, 2019.
Five other banks were newly placed under the direct supervision of ECB. In Ireland, a subsidiary of Bank of America Merrill Lynch was newly classified as significant following a request by the Central Bank of Ireland in anticipation of an increase in the bank’s total assets, thus placing it under the direct supervision of ECB. The new formation of the Luminor Group added Luminor Bank AS in Estonia and Luminor Bank AS in Latvia to the list of significant institutions, while Banque Internationale à Luxemburg S.A. will be directly supervised by ECB after its split from Precision Capital S.A. Moreover, Nordea Bank Abp was granted a new license in Finland after relocating its headquarters there from Sweden. ECB also withdrew the license of Cyprus Cooperative Bank Ltd. Additionally, five banks were removed from the list of ECB supervised banks over the past year because the banks in question have ceased to exist:
- Nordea Bank AB (publ)
- Suomen sivuliike after its parent Nordea Bank AB (publ) merged into Nordea Bank Abp
- Danske Bank Plc when it transferred its business to its parent Danske Bank A/S
- VTB Bank (Austria) AG after its business was transferred to VTB Bank (Europe) S.E.,
- Banco Mare Nostrum, S.A. after it merged into Bankia, S.A.
The changes in significance statuses are the result of new group structures, license withdrawals, mergers, and other developments. Several large banking groups have also relocated their activities to the euro area. This has increased the overall complexity and size of directly supervised banks. Two of the changes were the result of the annual assessment of significance.
ECB reviews whether a credit institution or a group fulfills any of the significance criteria according to the SSM Regulation on at least an annual basis. This annual assessment includes credit institutions, financial holding companies and mixed financial holding companies established in the euro area, and branches established in the euro area by credit institutions based in other EU member states. ECB regularly publishes the complete list of significant and less significant institutions to reflect the results of the annual significance assessment, ad hoc significance assessments that are conducted regularly throughout the year, and changes in the group structures of supervised banking groups. Significant credit institutions are directly supervised by ECB, whereas less significant credit institutions are supervised by their national competent authorities, subject to the oversight of ECB.
Keywords: Europe, EU, Banking, Banking Supervision, SSM, Significant Institutions, Less Significant Institutions, ECB
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