European Banking Authority publishes final technical standards on the identification of a group of connected clients
The European Banking Authority (EBA) published today its final draft Regulatory Technical Standards (RTS) on the identification of a group of connected clients (GCC) under the Capital Requirements Regulation (CRR). These draft RTS, in conjunction with the EBA Guidelines on connected clients, provide the complete framework for the identification of two or more natural or legal persons who are so closely linked by idiosyncratic risk factors, that it is prudent to treat as a single risk.
In particular, the following conditions lead to the identification of two or more legal persons as connected:
. if they are part of the same consolidated financial statements, even in the absence of exposures towards the natural or legal person that controls the group. These draft RTS also provide a non-exhaustive list of circumstances of control criteria and control indicators to assess if there is a parent-subsidiary-similar relationship among natural and/or legal persons;
. if it is likely that the financial difficulties of one natural or legal person would spread to other(s) impacting full and timely repayment of liabilities;
. in case control and economic dependencies co-exist within group of connected clients in such a way that all relevant natural and/or legal persons constitute a single risk.
DOCUMENTS
Draft Regulatory Technical Standards on the identification of a group of connected clients
LINKS
Regulatory Technical Standards on the identification of a group of connected clients
Anders Olofsson – former Head of Payments Finastra
Banking 4.0 – „how was the experience for you”
„So many people are coming here to Bucharest, people that I see and interact on linkedin and now I get the change to meet them in person. It was like being to the Football World Cup but this was the World Cup on linkedin in payments and open banking.”
Many more interesting quotes in the video below:
