Financial conglomerates

The EBA cooperates regularly and closely with the other two European Supervisory Authorities (ESAs), EIOPA and ESMA, through the ESAs' Joint Committee. The aim of this cooperation is to ensure cross-sectoral consistency of work and to reach joint positions in the area of supervision of financial conglomerates, under the Financial Conglomerates Directive (FICOD, 2002/87/EC). In this respect, the ESAs tasks include, in particular, contribution to the European Commission's fundamental review of FICOD, development of joint draft Technical Standards as set out in FICOD and development of Guidelines, and annual updating and publishing of the list of identified financial conglomerates. Further tasks include exchanging supervisory information, assisting in the identification and measurement of systemic risk of financial conglomerates and assessing its cross sector implications, providing regulatory and supervisory input to supervisory measures under FICOD, and fulfilling any other specific tasks set out and agreed by the ESAs' governing bodies, and delegated by the Joint Committee.

Technical Standards, Guidelines & Recommendations

  • Regulatory Technical Standards on risk concentration and intra-group transactions within financial conglomerates

    These Regulatory Technical Standards (RTS) developed by the Joint Committee of the European Supervisory Authorities (ESAs) aim to clarify which risk concentrations and intra-group transactions within a financial conglomerate should be considered as significant. In addition, the RTS provide some supervisory measures for coordinators and other relevant competent authorities when identifying types of significant risk concentration and intra-group transactions, their associated thresholds and reports, where appropriate.

    Status: Adopted and published in the Official Journal

  • Guidelines on the convergence of supervisory practices relating to the consistency of supervisory coordination arrangements for financial conglomerates

    The Guidelines on the convergence of practices aimed at ensuring consistency of supervisory coordination arrangements for financial conglomerates will enhance the level playing field in the financial market and reduce administrative burdens for firms and supervisory authorities. Their objective is to clarify and enhance cooperation between national competent authorities on cross-border groups that have been identified as financial conglomerates.

    Status: Final and translated into the EU official languages

  • Regulatory Technical Standards on the uniform conditions of application of the calculation methods for determining the amount of capital required at the level of the financial conglomerate

    The proposed Regulatory Technical Standards (RTS) set out specifications for institutions in a financial conglomerate to ensure uniform conditions of application of the calculation methods for determining the amount of capital required at the level of the financial conglomerate. The RTS are based on the following general principles: elimination of multiple gearing; elimination of intra-group creation of own funds; transferability and availability of own funds; and coverage of deficit at financial conglomerate level with regard to the definition of cross-sector capital. Three are the underlying technical calculation methods: –(i) accounting consolidation method; –(ii) deduction and aggregation method; and –(iii) combination of methods (i) and (ii).

    Status: Adopted and published in the Official Journal

Opinions, Reports and other Publications

 

Opinions

 

Other Publications