ECB Issues Consolidated Guide to Assessments of License Applications
ECB published a consolidated version of the guide to assessments of license applications for banks. The guide applies to all license applications to become a credit institution within the meaning of the Capital Requirements Regulation (CRR), including, but not limited to, initial authorizations for credit institutions, applications from fintech companies, authorizations in the context of mergers or acquisitions, bridge bank applications and license extensions.
The consolidated guide is intended as a practical tool to support those involved in the process of authorization and to ensure a smooth and effective procedure and assessment. The text of the consolidated version of the guide, which is not legally binding, combines the content of the first guide published in March 2018 and that of Part 2, the public consultation for which ended on October 25, 2018. As the ECB received no comments during the public consultation of Part 2, no feedback statement has been published.
When granting authorizations to banks, ECB acts as a gatekeeper to ensure that only robust banks can enter the market. The consolidated guide promotes a level playing field throughout the euro area and reduces the risk that entities will circumvent banking regulation and supervision. It also promotes awareness and enhances the transparency of the assessment criteria and processes for establishing a credit institution in the euro area. These criteria include the applicant banks’ capital levels, their program of operations, the structural organization and the suitability of their managers and relevant shareholders. No particular business model for banks is advocated. The guide will be updated regularly to reflect new developments and experience gained in practice.
Related Links
Keywords: Europe, EU, Banking, License Applications, CRR, Guide, ECB
Previous Article
FCA Seeks Views on Technology to Achieve Better Regulatory ReportingRelated Articles
OSFI Issues Phase2 Consultation on Climate Scenario Exercise for Banks
The Office of the Superintendent of Financial Institutions (OSFI) recently announced a consultation on the second phase of the Standardized Climate Scenario Exercise (SCSE) for banks and other financial institutions it regulates in Canada.
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.