EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR). The Opinion raises issues related to the divergent approaches on the scope of the authorization of credit institutions and the extent and type of commercial activities that may be carried out by credit institutions. EBA also recommends that changes to the regulatory perimeter should be accompanied by an impact assessment.
The Opinion highlights that divergences remain in the interpretation of elements of the notion of "credit institution," despite its definition being embodied in the CRR, an EU Regulation directly applicable in national law. Such divergences adversely impact the significant progress made with the Single Rulebook in levelling the playing field and deepening EU market integration in the banking and financial sector. The EBA Opinion is that the key terms "business of which," "deposits," "other repayable funds," and "from the public" that compose the notion of "credit institution" should be clarified to establish a true level playing field across EU to enhance the effectiveness of the Single Rulebook. EBA is, therefore, inviting EC to consider providing clarifications of such key terms with a view to effectively and substantively harmonize the notion of "credit institution" set out in EU law. These clarifications would be beneficial to the development of a uniform Single Rulebook and ultimately to a deeper market integration of banking and financial services across EU. EBA also highlights that these issues had been analyzed and brought to the attention of EC in the previous reports and related opinions of EBA.
Keywords: Europe, EU, Banking, CRR, CRD, Single Rulebook, Opinion, EC, EBA
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