European Banking Authority plans to strengthen group financial support

European Banking Authority plans to strengthen group financial support

Summary:

Proposals for strengthening integrated risk management by removing possible uncertainties around supporting entities in distress within the same group have been set out for consultation by the European Banking Authority (EBA).

Views are sought on draft Regulatory Technical Standards (RTS) and Guidelines specifying the various conditions for the provision of group financial support, and on draft Implementing Technical Standards (ITS) on the disclosure of group financial support agreements. The standards and guidelines have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD). The consultation is open until 4 January 2015.

Background

The draft RTS and Guidelines have been developed according to Directive 2014/59/EU (BRRD), which mandates the EBA to specify the conditions for the provision of group financial support.

The draft ITS are based on the BRRD, art 26 which mandates the EBA to specify the format and content of the disclosure of group financial support agreements.

Group financial support refers to one entity of a banking group providing support to another entity of the same group on the basis of a financial support agreement, provided the latter entity encounters financial difficulties and meets the conditions the BRRD requires for early intervention measures by the competent authority.

Consultation

The EBA asserts the legal framework for financial support within a group is widely different across the EU countries, in particular if the group is in financial difficulties and with regard to support from a

Subscription Form

Related Articles:
Latest Articles:

Register for free to access this article and thousands of others like it.
Already a subscriber? Login
RELX (UK) Limited, trading as LexisNexis, and our LexisNexis Legal & Professional group companies will contact you to confirm your email address. You can manage your communication preferences via our Preference Centre. You can learn more about how we handle your personal data and your rights by reviewing our  Privacy Policy.

Access this article and thousands of others like it free by subscribing to our blog.

Read full article

Already a subscriber? Login

About the author:
Eleanor qualified in 1998 into the insolvency team at ASB law. She became a partner in 2005, and went on to head up the Recovery & Insolvency team. Whilst traditionally specialising mainly in contentious corporate insolvency matters, in recent years she has moved into the non contentious arena, in particular specialising in company administrations.