Draft Guide on qualifying holding procedures - Another piece in the framework for banking consolidation

Within the guide, the ECB clarified uncertainties within the existing banking consolidation framework and added some additional requirements.

On 28th September, the ECB published its Draft Guide on qualifying holding procedures. The guideline lays out the ECB’s process for dealing with applications by a natural or legal person that plans to acquire a qualifying holding in a credit institution. The new guideline complements the ECB’s existing Guide on the supervisory approach to consolidation in the banking sector and the Joint Guidelines on the prudential assessment of acquisitions and increases of qualifying holdings in the financial sector.

Within the guide, the ECB clarified uncertainties within the existing banking consolidation framework and added some additional requirements. The guide can be used by banks as a user-friendly handbook, it walks the reader through the process of assessing the buyers of qualifying stakes in banks. A qualifying holding is defined as owning more than 10% of a credit institution’s capital or voting rights. Any such acquisition requires prior supervisory approval to ensure the soundness of such transactions thereby contributing to a safer financial system.

For a comprehensive overview of the existing framework for qualifying holdings procedures and a detailed analysis of the guidelines for qualifying holdings acquisitions now introduced through the ECB's consultation, read the complete article in PwC Plus.

If you have questions about the regulatory requirements in connection with the acquisition of complex structures and multiple layers, please do not hesitate to contact us. PwC supports you in identifying the specific requirements and accompanies the transactions.