Article 5Criteria for the adoption of delegated decisions on acquisitions of assets or liabilities

1.

Decisions on the approval of acquisitions of assets or liabilities in credit institutions or non-credit institutions by a significant supervised entity shall be taken by means of a delegated decision if all of the following criteria are met:

(a)

the impact on the own funds of the acquiring significant supervised entity, as a result of the acquisition, is limited, which means that:

  1. (i)

    following the acquisition, the own funds exceed and are estimated to continue exceeding the sum of the requirements laid down in Article 92(1) of Regulation (EU) No 575/2013, the own funds required to be held in accordance with Article 16(2)(a) of Regulation (EU) No 1024/2013, the combined buffer requirement as defined in point (6) of Article 128 of Directive 2013/36/EU and the Pillar 2 capital guidance as set out in the last available SREP decision; and

  2. (ii)

    the impact of the reduction on the Common Equity Tier 1 capital ratio, the Tier 1 capital ratio and the total capital ratio is below 100 basis points;

(b)

the impact on the liquidity situation of the acquiring significant supervised entity, as a result of the acquisition, is limited, which means that:

  1. (i)

    the LCR remains above 110 % and is above the liquidity requirements set out in the last available SREP decision, if these are higher than the required minimum LCR, and

  2. (ii)

    at consolidated level, the LCR is not reduced by more than 50 %;

(c)

the value of the assets and liabilities that are acquired does not exceed 25 % of the total assets of the acquiring significant supervised entity at individual level.

2.

The assessment of acquisitions of assets or liabilities shall be carried out in accordance with the relevant provisions of national law, also taking into consideration any applicable ECB guides and/or national competent authorities' policy stances, guidance or similar acts.