EBA · 2015_2223 Final Q&A

Promotional banks

Regulation
Directive 2014/59/EU (BRRD)
Article
103, para. 7
Topic
Resolution financing arrangements
Submitted by
Competent authority
Submitted
2015-08-14
Answered
2016-07-01
Answer provided by
ESAs (EBA, ESMA, EIOPA)

Question

Is there a list of all EU institutions qualifying for the notion of "promotional bank"?

Background

Pursuant to Article 5(1)(f) of the Delegated Act on contributions to the resolution fund, promotional banks and their intermediaries might deduct certain liabilities form their contribution bases. For the purpose of being able to properly asses which deductions should be allowed for, we would need to know which institutions in the EU that qualify as such promotional banks (not that we have many of them domiciled in Sweden but it might be that they extent their loans through Swedish institutions, in which case those institutions might eligibly call for a deduction in their capacities as intermediaries). Hence, does the EBA, or the Commission for that matter, have a list of these promotional banks? If not, are there any plans of compiling such a list?

Answer

No, the Commission did not draft such a list and there is no plan in this respect for the time being. The assessment of whether a bank falls in the definition of promotional bank has to be derived on a case-by-case basis from the definitions contained in Articles 3(27) and 3(28) of the Commission Delegated Regulation 2015/63. 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_2223

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.

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