Monday 1 December 2014

Europe: EBA opinion and report - credit institutions - meaning and perimeter

The European Banking Authority has published an opinion and report in respect to the meaning of 'credit institution': see, respectively, here (pdf) and here (pdf). In its report, the EBA calls upon the European Commission to consider clarifying the definition of credit institution to ensure that it is interpreted in the same way across the European Union. In the EBA's view, the single rulebook is undermined by the risk that the term could be interpreted differently by Member States.

The EBA has also noted wide differences between Member States in the prudential treatment of entitles that, whilst not credit institutions, carry on bank like activities. No recommendations are, however, offered about the perimeter of 'credit institution'.

No comments: