Consultation on technical standards on cooperatives, mutuals, savings institutions and similar institutions
The proposed draft regulatory technical standards (RTS) on own funds (Part Two) intend to specify the conditions under which competent authorities may determine that a type of undertaking is recognised under applicable national law as a mutual, cooperative society, savings institution or similar institution. The consultation runs until 21 December 2012.
In line with the mandate given to the EBA under the Capital Requirements Regulation (CRR), the draft RTS focus on elements which are of relevance to own funds (features linked to capital instruments, reserves, etc) and may lead competent authorities to recognise a type of undertaking as a mutual, cooperative society, savings institution or similar institution.
These RTS complement the consultation on draft RTS on own funds (Part One) published by the EBA on 4 April 2012 and need to be read in conjunction with it. Namely, the first consultation included details of the rules on own funds to be applied to the European cooperative banking sector (including mutuals, cooperative societies, savings institutions or similar institutions), taking into account its specificities.
The objective of these RTS is also to mitigate the risk that any institution could operate under the specific status of mutual, cooperative society, savings institution or similar institution to which specific own funds requirements may apply, while not possessing features which are common to the European cooperative banking sector.
As already announced by the EBA, all RTS related to own funds requirements are intended to be put forward as one integrated draft Regulation. These RTS will be part of the single rulebook aimed at enhancing regulatory harmonisation in Europe and namely at strengthening the quality of capital.
Consultation process
Comments on this paper can be sent to the EBA by e-mail to EBA-CP-2012-11@eba.europa.eu by 21 December 2012, indicating the reference EBA/CP/2012/11.
All contributions received will be published, unless requested otherwise.
A public hearing will take place at the EBA premises on 26 November 2012 from 13:00 to 15:00 GMT. To register for the public hearing, click here.