Methods for prudential consolidation

Paragraphs 2   3  to 8   6 and 9 of Article 18 of Regulation (EU) No. 575/2013 (CRR) describe alternatives to full consolidation. These alternatives do not apply where Part Six applies, i.e. to consolidation of the liquidity coverage requirement, liquidity reporting , and reporting on stable funding and net stable funding ratio . This means that for liquidity reporting on a consolidated basis, only full consolidation is permitted. EU parent institutions , institutions controlled by an EU parent financial holding company and institutions controlled by an EU parent mixed financial holding company shall comply with Part Six on the basis of the ir consolidated situation of that parent institution, financial holding company or mixed financial holding company provided that they fulfil the conditions mentioned in as per Article 11 ( 3 ) (4) of the CRR. Article 11(4) of the CRR establishes that where, in accordance with Article 8(1) to (5) of the CRR, a competent authority waives the application of liquidity requirements to an institution and to all or some of its subsidiaries, and instead supervises them as single liquidity subgroup, the liquidity subgroup in question shall comply with Part Six on the consolidated basis of that subgroup.