- ECB invites comments from banks, investors and other stakeholders involved in bank acquisitions
- Guide clarifies ECB supervisory practices for qualifying holding assessments
- Consultation period ends on 9 November 2022
The European Central Bank (ECB) is today launching aon its. The Guide aims to clarify how the ECB assesses applications to acquire qualifying holdings in banks.
A shareholder owning 10% or more of a given bank, or exercising significant influence over it, is said to hold a ““. Prior ECB authorisation is needed to acquire a qualifying holding or to pass certain thresholds, for example 20%, 30% or 50% of a bank’s capital or voting rights. Qualifying holding acquisitions are typically triggered by mergers and acquisitions projects.
The ECB intends for the Guide to qualifying holding procedures to function as a user-friendly handbook. The Guide explains who is obliged to undergo qualifying holding assessments, the documentation required to apply and how the ECB assesses these transactions. It also provides information on complex acquisition structures, the application of the principle of proportionality and specific procedural elements.
The publication of the Guide has the purpose of increasing transparency towards market participants in explaining what the ECB’s supervisory practice is when assessing the acquisition of qualifying holdings. It builds on the applicable legal framework and on experience gained over the years in assessing this type of transactions.
This Guide will complement the ECB’s, as the two guides have a complementary focus.
The consultation on the Guide on qualifying holding procedures starts today and ends on 9 November 2022. The ECB will publish the comments received along with a feedback statement and the final version of the guide.
ecb.europa.eu
