2016_2660 Exemption from cap of inflows per Article 33 (1) of the Commission Delegated Act 2015/61

Question ID:

2016_2660

Legal Act:

Regulation (EU) No 575/2013 (CRR)

Topic:

Liquidity risk

Article:

425

Paragraph:

COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations:

Not applicable

Article/Paragraph:

Article 33 (2) of the Commission Delegated Act 2015/61

Disclose name of institution / entity:

Type of submitter:

Competent authority

Subject Matter:

Exemption from cap of inflows per Article 33 (1) of the Commission Delegated Act 2015/61

Question:

(a) Can the national competent authority of a Member State grant such exemption where the inflow arises from the parent companies or subsidiaries incorporated in third countries?

(b) If the reply to the first question is positive, shall the national competent authority carry out an assessment as required under the draft regulation to be issued by the ECB under Article 425(5) of the CRR and Article 34(1)(2) and (3) of the Commission Delegated Regulation (EU) 2015/61 or shall the national competent authority follow other national guidelines?

Background on the question:

According to Article 33(2)(a) of the Delegated Act 2015/61, a credit institution may fully or partially be exempted from the cap on inflows (75% of outflows) where the provider is a parent or a subsidiary within the same group of the institution subject to the approval of the national competent authority.

In view of Article 33(2)(a) of the Delegated Act and Article 425(1) of the CRR, can a national competent authority grant an exemption on the cap of inflows to an institution authorised in a Member State whose inflows arise from a third country parent bank and a branch (of the same parent bank) incorporated in the UK?

Date of submission:

04/03/2016

Published as Final Q&A:

23/09/2016

Final Answer:

According to Article 33(2)(a) of the Delegated Regulation (EU) 2015/61 subject to prior approval of the competent authority a credit institution may be fully or partially exempted from the cap on inflows (75% of outflows) where the provider is an intragroup entity irrespective of the country of residence. An exemption may be granted on case-by-case basis according to the policy of the competent authority that supervises the credit institution.

Status:

Final Q&A

Answer prepared by:

Answer prepared by the EBA.

Note to Q&A:

Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Regulation (EU) No 575/2013 (CRR) and continues to be relevant.