Regulatory Technical Standards on the uniform conditions of application of the calculation methods for determining the amount of capital required at the level of the financial conglomerate

status: Adopted and published on the Official Journal

The proposed Regulatory Technical Standards (RTS) set out specifications for institutions in a financial conglomerate to ensure uniform conditions of application of the calculation methods for determining the amount of capital required at the level of the financial conglomerate. The RTS are based on the following general principles: elimination of multiple gearing; elimination of intra-group creation of own funds; transferability and availability of own funds; and coverage of deficit at financial conglomerate level with regard to the definition of cross-sector capital. Three are the underlying technical calculation methods: –(i) accounting consolidation method; –(ii) deduction and aggregation method; and –(iii) combination of methods (i) and (ii).

 

Press Release

Consultation Papers