- Question ID
-
2013_301
- Legal act
- Regulation (EU) No 575/2013 (CRR)
- Topic
- Liquidity risk
- Article
-
421
- Paragraph
-
5
- Subparagraph
-
b
- COM Delegated or Implementing Acts/RTS/ITS/GLs/Recommendations
- Not applicable
- Article/Paragraph
-
na
- Name of institution / submitter
-
European Banking Federation
- Country of incorporation / residence
-
Belgium
- Type of submitter
-
Industry association
- Subject matter
-
Definition of a "material penalty" and "individually justified circumstances"
- Question
-
What is the definition of a "material penalty" and "individually justified circumstances"? Who will be the final arbiter in determining the “materiality” of the penalty for early withdrawal within 30 days?
- Background on the question
-
N/A
- Submission date
- Final publishing date
-
- Final answer
-
If a term is not defined in Regulation (EU) No 575/2013, the Q&A process cannot be used to provide a formal, legal definition. Non-defined terms must be interpreted - by institutions and subject to overall supervision carried out by competent authorities - according to the general meaning of the terms used, together with other recognised interpretative methods, such as contextual interpretation and by identifying the objective of the concerned provisions.
DISCLAIMER:
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General for Internal Market and Services) 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.
- Status
-
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).
Disclaimer
The Q&A refers to the provisions in force on the day of their publication. The EBA does not systematically review published Q&As following the amendment of legislative acts. Users of the Q&A tool should therefore check the date of publication of the Q&A and whether the provisions referred to in the answer remain the same.