Featured Product

    MFSA Issues Circular on Amendments to Banking Rule

    March 01, 2021

    MFSA is amending the Banking Rule BR/13 on prudential assessment of acquisitions and increase of shareholdings in credit institutions authorized under the Banking Act 1994. The Rule sets out the criteria to be applied by MFSA in its assessment of a person or persons who intend to acquire or increase a shareholding in a credit institution. The minor amendments being made to the Rule are aimed at rectifying and updating the outdated references while further clarifying certain provisions of the Rule.

    Appendix 1 to the Rule is aimed at providing a list of specific information and documentation that may be requested to be submitted to MFSA for the prudential assessment of acquisitions. MFSA repealed sections of the Appendix that are covered in the regulatory technical standards of EBA, pursuant to Article 8(2) of the Capital Requirements Directive, and replaced such sections with paragraph 1 of Part I of the Appendix that provides details on information to be submitted. Additionally, minor amendments are being made in the section on proportionality, through the introduction of paragraph 18A of the Rule. This paragraph provides that the intensity of the assessment of proposed acquirers shall take into account the likely influence that the proposed acquirer may exercise on the credit institution. With respect to the MFSA opposition of proposed acquisitions, amendments are being made to the Rule to clarify that where the circumstances are well-justified, MFSA shall not oppose the proposed acquisition solely on the basis of the lack of some required information, the absence of which can be justified by the nature of the transaction. 

    The revisions being made to the Rule also provide further clarifications on the MFSA procedure for assessing proposed acquisitions. In assessing indirect acquirers of a credit institution, which are entities already MFSA-licensed, MFSA may limit such assessment to the persons at the top of the corporate control chain. This is clarified through the introduction of Paragraph 32A of the Rule. Additionally, with respect to MFSA's procedure, the amendments to the Rule introduce provisions related to assessments of financial soundness of a proposed acquirer that are made by overseas regulatory authorities. The Rule clarifies the extent to which such assessments by these authorities are taken into consideration by MFSA. These amendments are aimed at ensuring that proposed acquirers are aware of the information that is required to be submitted to MFSA to allow it to assess the proposed acquisition in a complete and timely manner.

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Rule, Proportionality, Regulatory Technical Standards, CRD, MFSA

    Related Articles
    News

    BIS Paper Outlines Vision for Future Financial System

    In a recent paper, the General Manager of Bank for International Settlements (BIS) and the Indian entrepreneur (Infosys co-founder) Nandan Nilekani have laid out a vision for the Finternet, which is proposed to be a network of multiple financial ecosystems, much like the internet.

    April 29, 2024 WebPage Regulatory News
    News

    NGFS Outlines Options for Supervisory Review of Transition Plans

    The Network for Greening the Financial System (NGFS) recently published three reports on the use of transition plans to boost sustainable finance and manage climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    BCBS Issues Discussion Paper on Climate Scenario Analysis

    The Basel Committee on Banking Supervision (BCBS) issued a discussion paper on the use of climate scenario analysis to strengthen the management and supervision of climate-related financial risks.

    April 29, 2024 WebPage Regulatory News
    News

    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.

    April 25, 2024 WebPage Regulatory News
    News

    CFIT to Chair Open Finance Taskforce Announced by UK Government

    The UK government announced the formation of an industry-led Open Finance Taskforce, chaired by the Center for Finance, Innovation, and Technology (CFIT).

    April 25, 2024 WebPage Regulatory News
    News

    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

    March 20, 2024 WebPage Regulatory News
    News

    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.

    March 18, 2024 WebPage Regulatory News
    News

    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

    March 18, 2024 WebPage Regulatory News
    News

    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.

    March 07, 2024 WebPage Regulatory News
    News

    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

    March 05, 2024 WebPage Regulatory News
    RESULTS 1 - 10 OF 8962