Question ID:
Legal Act:
Regulation (EU) No 575/2013 (CRR)
Own funds
81, 26 (d), 84 (a)
COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:
Not applicable
Disclose name of institution / entity:
Name of institution / submitter:
Austrian Federal Economic Chamber, Division Bank and Insurance
Country of incorporation / residence:
Type of submitter:
Industry association
Subject Matter:
Minority interests

Article 81(1) of Regulation (EU) No 575/2013 (CRR) defines minority interests which are part of CET-1 instruments where the sum of share premium accounts related to those instruments, retained earnings and other reserves are noted. On the other hand the other comprehensive income defined in Article 26(1)(d) of CRR is not noted in Article 81(1). Further, Article 84(1)(a) refers to the CET-1 capital of the respective subsidiary which means for us the other comprehensive income is part of the calculation. How does other comprehensive income have to be treated in case of calculation of the minority interests?

Background on the question:

Clarification regarding treatment/calculation of minority interest.

Date of submission:
Published as Final Q&A:
Final Answer:

As minority interests according to Article 81(1) of Regulation (EU) No 575/2013 (CRR)  do not comprise other comprehensive income (as well as the funds for general banking risk), these CET1 items of a subsidiary can never be included at a higher level of consolidation.

Article 84 CRR sets out the method for calculating the amount of minority interests to be included in CET1 at consolidated level. This calculation method refers to CET1 capital, as defined in Article 50 CRR.  Other comprehensive income and funds for general banking risk therefore form part of this calculation, without being included in CET1 at consolidated level.


This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Final Q&A
Answer prepared by:
Answer prepared by the European Commission because it is a matter of interpretation of Union law.
Note to Q&A:

Update 26.03.2021: This Q&A has not yet been reviewed by the European Commission in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR).