Featured Product

    ECB Updates List of Banks Under Its Direct Supervision for 2019

    December 14, 2018

    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. 

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Supervision, SSM, Significant Institutions, Less Significant Institutions, ECB

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958