11 November 2021
The European Banking Authority (EBA) published today the Final Paper of its Guidelines on a common assessment methodology for granting authorisation as a credit institution. It is the first guidance addressed to all competent authorities across the EU in charge of granting authorisation as a credit institution, and covers the authorisation requirements set out in the Capital Requirements Directive (CRD).
The draft Guidelines advocate for a risk-based approach and insist on the importance of consistency with the supervisory approaches applied in going concern situations. In addition, they consider the proportionality principle for all relevant assessment criteria and apply to both traditional and innovative business models and/or delivery mechanisms, as they are technology neutral.
In the context of the assessment of the application for granting an authorisation, the final Guidelines also include guidance on money laundering or terrorist financing (ML/TF) risks and highlight the importance of cooperation with the anti-money laundering (AML) supervisor and other public bodies, in accordance the CRD.
The Guidelines have been drafted in accordance with Article 8(5) CRD, which mandates the Authority to specify a common assessment methodology for granting authorisations in accordance with the CRD.
The Guidelines complement the EBA RTS on information to be submitted by applicants for authorisation as credit institutions developed pursuant to Article 8(2) CRD, and contribute to the convergence of supervisory practices around market access for credit institutions across the single market.