Featured Product

    ECB Consults on Part 2 of Guide to Assessments of License Applications

    September 14, 2018

    ECB launched a public consultation on Part 2 of the guide to assessments of license applications. Part 2 complements the Licensing Guide published in March 2018 and both documents should be read together as one guide. Consultation ends on October 25, 2018. ECB will consider the comments received when finalizing this guide and publish a feedback statement. ECB has made available the draft guide, frequently asked questions (FAQs), and public consultation template on its Banking Supervision website.

    Part 2 of the Licensing Guide focuses on the assessment criteria for capital requirements and program of operations, including business plans. While the national competent authorities act as the first point of contact for licensing applications, their assessments are conducted jointly with ECB, which is the competent authority for making the final decision to grant, extend, or withdraw a banking license in the euro area. As part of its evaluation of license applications, ECB assesses capital needs. Therefore, to ensure consistent application of practices within the Single Supervisory Mechanism, Part 2 of the Licensing Guide explains the stance of ECB on the expected capital at the time of authorization. Part 2 also indicates the main topics of interest to supervisors when they assess the program of operations. These include:

    • Business model and associated risk profile of a credit institution
    • Situation of the credit institution within the economic context,the business environment, and its financial projections
    • Clarity and effectiveness of the organizational structure of the institution and its governance arrangements
    • Internal control and risk management framework and IT infrastructure of the credit institution

    The Licensing 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, but it is not legally binding in nature. 

     

    Related Links

    Comment Due Date: October 25, 2018

    Keywords: Europe, EU, Banking, License Applications, CRR, FAQ, ECB

    Related Articles
    News

    ESAs Issue Multiple Regulatory Updates for Financial Sector Entities

    The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments

    The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.

    November 10, 2022 WebPage Regulatory News
    News

    IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets

    The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.

    November 09, 2022 WebPage Regulatory News
    News

    EBA Finalizes Methodology for Stress Tests, Issues Other Updates

    The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    OSFI Sets Out Work Priorities and Reporting Updates for Banks

    The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.

    November 07, 2022 WebPage Regulatory News
    News

    APRA Finalizes Changes to Capital Framework, Issues Other Updates

    The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.

    November 03, 2022 WebPage Regulatory News
    News

    BIS Hub and Central Banks Conduct CBDC and DeFI Pilots

    The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596