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    ECB Updates List of Supervised Entities in EU in December 2019

    December 04, 2019

    ECB updated the list of supervised entities in EU, following the annual review of significance and ad hoc assessments. From January 01, 2020, the number of supervised entities will decrease to 117, from 119 a year earlier. The changes are the result of new group structures, a license withdrawal, business relocations in view of Brexit, regulatory changes, and other developments. The list contains the ECB-supervised institutions, which comprise the significant (part A) and less significant credit institutions (part B). The cut-off date for these changes is November 01, 2019.

    While the number of significant institutions has fallen, banks directly supervised by ECB are generally becoming larger and more complex, as banking groups consolidate or relocate activities from UK to the euro area. The key changes follow:

    • ECB will directly supervise Akcinė bendrovė Šiaulių bankas, which was classified significant after it became the third largest credit institution in Lithuania, from January 01, 2020.
    • Owing to Brexit, four banks are expected to significantly increase their business activities and have been placed under the direct supervision of ECB: UBS Europe SE, J.P. Morgan AG, Morgan Stanley Europe Holding SE, and Goldman Sachs Bank Europe SE.
    • Credito Cooperativo Italiano S.p.A., a new banking group led by Cassa Centrale Banca and formed after a law was introduced in Italy on the consolidation of cooperative banks, was classified as significant because its assets exceeded EUR 30 billion. 
    • ECB took over the supervision of AS “PNB Banka” at the request of the Latvian Financial and Capital Market Commission and ECB later declared the bank “failing or likely to fail.”
    • Nine banks were removed from the list of ECB-supervised banks. Of these, five became branches of significant institutions and were thus removed from the list while still being supervised as part of the group: Luminor Bank AB, Luminor Bank AS, and branches of Barclays Bank plc in Germany, France, and Italy. ECB stopped direct supervision of three banks following an amendment of the Capital Requirements Directive (CRD) that excluded development banks from the supervisory remit of ECB: Landeskreditbank Baden-Württemberg-Förderbank, Landwirtschaftliche Rentenbank, and NRW.BANK. Another bank, ABLV Bank Luxembourg, S.A., had its license withdrawn.

    ECB reviews certain parameters that determine whether a credit institution or a group fulfills any of the significance criteria according to the SSM Framework Regulation (EU Regulation No 468/2014). In the SSM framework, the types of supervised banks are referred to as credit institutions, financial holding companies, mixed financial holding companies, and a branch established in a participating member state by a credit institution that is established in a non-participating member state. ECB updates the list of supervised entities regularly and the list reflects status of banks at the given cut-off date. This date does not necessarily coincide with the date of the actual decision on the significance of a bank. The list is compiled on the basis of significance decisions adopted and notified by ECB that refer to events that became effective up to the cut-off date.


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    Keywords: Europe, EU, Banking, Supervised Entities, Significant Credit Institutions, Less Significant Credit Institutions, Banking Supervision, SSM, CRD, Brexit, ECB

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