Article 3 of the Directive allows Member States to provide for special prudential regimes for credit institutions which have been permanently affiliated to a central body. The goal of the revision of the Article is to ensure equal conditions for competition between credit institutions.
The Committee of European Banking Supervisors (CEBS) published its consultation paper (CP41) on its draft guidelines on revised Article 3 of the Directive 2006/48/EC (hereafter “Article 3”). The consultation is open to all interested parties, including supervised institutions and other market participants.
Currently, Article 3 allows Member States to provide for special prudential regimes for credit institutions which have been permanently affiliated to a central body since 15 December 1977, provided that those regimes were introduced into national law by 15 December 1979. Those time limits prevent Member States, especially those which acceded to the European Union since 1980, from introducing or maintaining such special prudential regimes for similarly affiliated credit institutions which were set up on their territories.
In order to ensure equal conditions for competition between credit institutions in Member States, Article 3 has been revised and the time limits removed. This means that from 31 December 2010 – the application date of the revised article - all Member States could provide for the special prudential regime, set out in Article 3, for all existing or future affiliated credit institutions that meet the conditions defined in that Article.
This consultation paper sets out CEBS’s draft guidelines on the amended Article 3 as requested in CRD II. The main objective of the draft guidelines is to enhance the convergence of the supervisory practices on the application of Article 3 across Member States. To achieve this objective, the draft guidelines provide clarity on the interpretation and guidance on the application of several aspects of Article 3.
© CEBS - Committee of European Banking Supervisors
Key
Hover over the blue highlighted
text to view the acronym meaning
Hover
over these icons for more information
Comments:
No Comments for this Article