EBA · 2015_1923 Final Q&A

Exclusion of Intragroup Liabilities - General Rule

Regulation
Directive 2014/59/EU (BRRD)
Article
103, para. 2
Topic
Resolution financing arrangements
Submitted by
Competent authority
Submitted
2015-04-02
Answered
2015-07-24
Answer provided by
ESAs (EBA, ESMA, EIOPA)
More Q&As on this regulation →

Question

"Does the criterion of Article 5 (1) a) ii) of DA ""each institution is included in the same consolidated supervision according to Artices 6 to 17 of Regulation No 575/2013 (EU) on a full basis"" alows also intragroup liabilities between ""sister"" companies to be excluded while calculating individual ex ante contributions to resolution arrangements?"

Background

"In ordrer to avoid double counting of certain group liabilities when calculating ex ante contributions to resolution arrangements, DA stipulates several conditions that must be fulfilled to allow particular intra-group liabilites to be deducted from the calculation base. One is linked to the inclusion of the institutions in a group under same consolidated supervision."

Answer

Yes. Article 5 (1) of Commission Delegated Regulation (EU) 2015/63 does not restrict the application of the exclusion to liabilities that arise between a parent and its subsidiaries. Disclaimer: This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.

Original source: European Banking Authority, Q&A ID 2015_1923

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

Similar Q&As

Exclusion of Intragroup Liabilities -Treatment of cases when one institution pays annual contribution according to Article 10 of DA (lump sum) and the other according to standard risk-weight reflecting approach

Answered 2016-05-13

Application of the even deduction rule in case of intragroup transactions booked - by institutions which are parties to the contract - in different amounts

Answered 2016-08-05

Basis for ex-ante contributions to resolution financing arrangements

Answered 2015-07-24

Exclusions of liabilities matched by promotional loans

Answered 2015-10-30

Exclusion of “financial services” from the exemption from bail-in

Answered 2016-11-18

More Q&As on this topic

Treatment of intragroup liabilities when one of the institutions is established in a country being a member of EEA and EFTA (i.e. non-EU Member State but EEA Member State)

Answered 2024-03-22

Treatment of covered deposits when determining the contribution base of Investment Firms

Answered 2022-03-18

Contributions to the financing arrangements from ceased banks

Answered 2022-03-18

Definition of "total liabilities"

Answered 2022-03-18

Definition of the target level for national resolution systems since 2016

Answered 2022-01-21

📋 Track EU financial regulation continuously

Forseti monitors EU financial regulation and delivers personalised alerts anchored to verified official sources.

Start free trial → Learn more

14-day free trial. No credit card required.