Exchange of information between the consolidating supervisor and the members of the college of supervisors
1. The consolidating supervisor and the members of the college of supervisors shall exchange all information necessary to facilitate the exercise of their functions and duties, including tasks referred to in Articles 112 and 113 of Directive 2013/36/EU, subject to the confidentiality requirements laid down in Section II of Chapter 1 in Title VII of that Directive, and where applicable, Articles 76 and 81 of Directive 2014/65/EU of the European Parliament and of the Council ( 12 ) .
2. The consolidating supervisor and the members of the college of supervisors shall exchange all information necessary to facilitate the exercise of the tasks referred to in Article 8 of Directive 2014/59/EU.
3. The consolidating supervisor and the members of the college of supervisors shall exchange the information referred to in paragraphs 1 and 2, whether received from a group entity, a competent authority, a supervisory authority or any other source, and in accordance with the procedure set out in Article 6 of Implementing Regulation (EU) 2025/790. That information shall be sufficiently adequate, accurate and timely.
4. The consolidating supervisor shall communicate the following to the members of the college:
(a)
the name of the deposit-guarantee scheme to which the institution, and its branches, belongs in accordance with Article 4(3) of Directive 2014/49/EU of the European Parliament and Council ( 13 ) ;
(b)
the maximum coverage of the deposit-guarantee scheme per eligible depositor;
(c)
the scope of coverage and the types of deposits covered;
(d)
any exclusion from the coverage, including products and types of depositors;
(e)
funding arrangements of the deposit guarantee scheme, in particular whether the scheme is funded ex ante or ex post and the volume of the deposit-guarantee scheme;
(f)
contact details of the administrator of the deposit-guarantee scheme.
5. The members of the college of supervisors that supervise significant branches shall provide the consolidating supervisor with information on any obstacles to cash and collateral transfer to or from that branch.
6. Where there is a change in the information provided in accordance with this Article, the consolidating supervisor and the members of the college of supervisors shall exchange updated information without undue delay.
Exchange of information on the outcome of the supervisory review and evaluation for performing group risk assessments and reaching joint decisions
1. For the purposes of reaching joint decisions on institution-specific prudential requirements as referred to in Article 113 of Directive 2013/36/EU, the consolidating supervisor and the relevant members of the college of supervisors shall exchange all necessary information, at both individual and consolidated level, without undue delay.
2. The consolidating supervisor and the members of the college of supervisors shall exchange information on the outcome of the supervisory review and evaluation carried out in accordance with Article 97 of Directive 2013/36/EU. That information shall include the following:
(a)
business model analysis, including the assessment of the viability of current business model and sustainability of institution’s forward-looking business strategy;
(b)
internal governance arrangements and institution-wide controls;
(c)
individual risks to institution’s capital, covering the following:
(i)
inherent individual risks;
(ii)
risk management and controls;
(d)
capital adequacy assessment and the assessment of the risk of excessive leverage, including proposed additional own funds required pursuant to Article 104(1), point (a), of Directive 2013/36/EU;
(e)
risks to institution’s liquidity and funding, covering the following:
(i)
liquidity risk and funding risk;
(ii)
liquidity and funding risk management;
(f)
liquidity adequacy assessment, including proposed quantitative and qualitative liquidity measures pursuant to Article 105 of Directive 2013/36/EU;
(g)
other supervisory measures, including supervisory measures pursuant to Article 102 of Directive 2013/36/EU, or early intervention measures taken or planned to address the inefficiencies identified as a result of the supervisory review and evaluation;
(h)
results of the supervisory stress tests carried out in accordance with Article 100 of Directive 2013/36/EU, including capital adequacy in stressed conditions and any proposed guidance on additional own funds in accordance with Article 104b of Directive 2013/36/EU;
(i)
findings from on-site inspections and off-site monitoring that are relevant for the assessment of the risk profile of the group or any of its entities.
Exchange of information with regard to the ongoing review of the permission to use internal approaches and non-material extensions or changes in internal models
1. The consolidating supervisor and the relevant members of the college of supervisors that supervise institutions that have been granted permission to use internal approaches in accordance with Articles 143(1), Article 151(4) or (9), Article 283, Article 312(2), or Article 363 of Regulation (EU) No 575/2013, shall exchange all relevant information with regard to the outcome of the ongoing review of the permission to use internal approaches as referred to in Article 101 of Directive 2013/36/EU.
2. Where the consolidating supervisor or any relevant member of the college of supervisors referred to in paragraph 1 has identified that an institution established in a Member State, including the EU parent undertaking, no longer meets the requirements for applying an internal approach or has identified material deficiencies in accordance with Article 101 of Directive 2013/36/EU, that consolidating supervisor or member of the college of supervisors shall immediately exchange the following information, as applicable, to reach the common agreement as referred to in Article 8 of Implementing Regulation (EU) 2025/790:
(a)
an assessment of the effect of the deficiencies identified and any issues of non-compliance with the requirements for using internal approaches and the materiality of those deficiencies and issues;
(b)
an assessment of the plan presented by the EU parent institution or any institution established in a Member State to restore compliance with the requirements for using internal approaches and to address the deficiencies identified, including information on the timeline for the implementation of that plan;
(c)
information about the intention of the consolidating supervisor or any relevant member of the college of supervisors to revoke the permission to use internal approaches or to restrict the use of those internal approaches to compliant areas or to those areas where compliance can be achieved within an appropriate timeline, or to those areas that are not affected by the deficiencies identified;
(d)
information about any proposed additional own funds requirements imposed pursuant to Article 104(1), point (d), of Directive 2013/36/EU, as a supervisory measure to address the issues of non-compliance or deficiencies identified.
3. The consolidating supervisor and the relevant members of the college of supervisors referred to in paragraph 1 shall also exchange information about extensions of the permission to use internal approaches or changes in those internal approaches that are not material, as referred to in Article 13 of Commission Implementing Regulation (EU) 2016/100 ( 14 ) .
4. Information referred to in paragraphs 1 and 2 shall be discussed and taken into account while developing the group risk assessment and reaching a joint decision in accordance with Article 113(1), point (a), of Directive 2013/36/EU.
5. The consolidating supervisor shall inform the competent authorities of the host Member States where significant branches are established on the information referred to in paragraphs 1 and 2, where that information is relevant to those competent authorities.
Exchange of information on early warning signs, potential risks and vulnerabilities
1. The consolidating supervisor and the members of the college of supervisors participating in the development of a group risk assessment report referred to in Article 113(2), point (a), of Directive 2013/36/EU or a group liquidity risk assessment report referred to in Article 113(2), point (b), of that Directive for the purposes of reaching joint decisions on institution-specific prudential requirements in accordance with that Article shall exchange quantitative information to identify early warning signs, potential risks and vulnerabilities and to contribute to the group risk assessment report and group liquidity risk assessment report. For that purpose, the consolidating supervisor and the members of the college of supervisors shall agree on a list of indicators to be exchanged regularly in accordance with Article 10 of Implementing Regulation (EU) 2025/790.
2. The information referred to in paragraph 1 shall be based on the information collected by the competent authorities in accordance with Commission Implementing Regulation (EU) 2024/3117 ( 15 ) . That information shall cover all group entities established in a Member State, and at least the following areas:
(a)
capital and leverage;
(b)
liquidity;
(c)
asset quality;
(d)
funding;
(e)
profitability;
(f)
concentration risk.
3. In addition to the information referred to in paragraph 1, the consolidating supervisor and the members of the college of supervisors shall identify risks and vulnerabilities for the group and its entities by exchanging qualitative and quantitative information on:
(a)
the macroeconomic environment in which the group of institutions and its group entities operate;
(b)
adverse developments in markets that may have the potential to jeopardise the market liquidity and the stability of the financial system in the Member States where entities of a group or significant branches are established and that may adversely impact the entities of the group or its significant branches.
4. Where a group entity infringes or, due, inter alia, to a rapidly deteriorating financial condition, is likely in the near future to infringe the requirements of Regulation (EU) No 575/2013 or Directive 2013/36/EU as referred to in Article 27(1) of Directive 2014/59/EU, the consolidating supervisor and the members of the college of supervisors shall provide each other with the following information:
(a)
whether conditions for application of early intervention measures are met;
(b)
whether early intervention measures for the group or any of the group entities are taken or planned in accordance with Articles 27 and 30 of Directive 2014/59/EU;
(c)
an indication of the potential consequences of those early intervention measures.
5. The consolidating supervisor shall communicate the information referred to in paragraphs 1, 2 and 3 to the competent authorities of the host Member States where significant branches are established, where relevant.
Exchange of information with regard to non-compliance, sanctions and other corrective measures
1. The consolidating supervisor shall communicate to the members of the college of supervisors information about any situations in respect of which the consolidating supervisor has determined that an EU parent institution, on individual or consolidated level, under its supervisory remit:
(a)
has not complied with Regulation (EU) No 575/2013 and Directive 2013/36/EU;
(b)
is subject to administrative penalties or other administrative measures that have been imposed in accordance with Articles 64 to 67 of Directive 2013/36/EU.
2. The members of the college of supervisors shall communicate to the consolidating supervisor information about any situations in respect of which those members have determined that an institution or a branch under their supervisory remit:
(a)
has not complied with Regulation (EU) No 575/2013 and Directive 2013/36/EU;
(b)
is subject to administrative penalties or other administrative measures that have been imposed in accordance with Articles 64 to 67 of Directive 2013/36/EU.
The consolidating supervisor shall communicate the relevant information to the members of the college of supervisors for whom that information is relevant in accordance with Article 6 of Implementing Regulation (EU) 2025/790.
3. Based on the information exchanged in accordance with paragraphs 1 and 2, the consolidating supervisor and the members of the college of supervisors shall discuss the possible impact of the issues of non-compliance and sanctions referred to in paragraphs 1 and 2 for the group entities concerned or for the group as a whole.
Exchange of information for the assessment of the group recovery plan
1. The consolidating supervisor and those members of the college of supervisors who participate in the process of reaching a joint decision on the matters referred to in Article 8(2) of Directive 2014/59/EU shall exchange all necessary information.
2. For the purposes of paragraph 1, the consolidating supervisor shall provide the group recovery plan to the members of the college of supervisors in accordance with the procedure set out in Article 6 of Implementing Regulation (EU) 2025/790.
3. The consolidating supervisor shall inform all members of the college of supervisors of the outcome of the process referred to in paragraph 1.
Exchange of information with regard to group financial support agreements
The consolidating supervisor shall inform all members of the college of supervisors of the main terms of authorisations of group financial support agreements that have been granted in accordance with Article 20 of Directive 2014/59/EU.
Examination programme
1. For the purposes of adopting the examination programme of the college of supervisors in accordance with Article 116(1), point (c), of Directive 2013/36/EU, the consolidating supervisor and the members of the college of supervisors shall identify the supervisory activities to be undertaken.
2. The examination programme of the college of supervisors shall contain at least the following:
(a)
the areas of joint work identified as a result of the group risk assessment and group liquidity risk assessment and joint decisions on institution-specific prudential requirements pursuant to Article 113 of Directive 2013/36/EU or as a result of any other activities undertaken by the college of supervisors, including efforts increasing the efficiency of supervision by removing unnecessary duplication of supervisory requirements as referred to in Article 116(1), point (d), of that Directive;
(b)
the respective supervisory examination programmes of the consolidating supervisor and the members of the college of supervisors for institutions and branches established in a Member State;
(c)
the areas of focus of the work of the college of supervisors and its planned supervisory activities, including assessment of the implementation of group policies, planned off-site activities and onsite inspections as referred to in Article 99(1), point (c), of Directive 2013/36/EU;
(d)
the members of the college of supervisors responsible for undertaking the planned supervisory activities;
(e)
where relevant, the allocation of tasks and responsibilities for entrustment of tasks and delegation of responsibilities respectively;
(f)
where applicable, the observers of the college of supervisors where those observers are involved in a supervisory activity;
(g)
the expected timelines, both in terms of timing and duration, for each of the planned supervisory activities.
Exchange of information between the consolidating supervisor and the observers of the college of supervisors
1. Where the information referred to in Articles 12 to 18 is relevant for the performance of the tasks of the observers, the consolidating supervisor shall communicate that information to the relevant observers.
2. The consolidating supervisor shall provide the group-level resolution authority with the following:
(a)
the required own funds pursuant to Article 104(1), point (a), of Directive 2013/36/EU and any guidance on additional own funds communicated to institutions in accordance with Article 104b of that Directive;
(b)
relevant information for the purposes of Articles 12, 13, 16, 18, 25, 30, 45h, 91 and 92 of Directive 2014/59/EU;
(c)
the timetable of the joint decision on the review and assessment of the group recovery plan in accordance with Article 8(2) of Directive 2014/59/EU, including a date for the group-level resolution authority to provide its recommendations, if any, in accordance with Article 6(4) of that Directive;
(d)
the timetable of the joint decisions on institution-specific prudential requirements in accordance with Article 113 of Directive 2013/36/EU;
(e)
information referred to in Article 12(4) and in Article 15 of this Regulation.
Event of adverse material effect on the risk profile of the group or its entities
1. The consolidating supervisor and the relevant members of the college of supervisors shall exchange quantitative and qualitative information on any event of adverse material effect in institutions or in other entities of a group that could seriously affect the institutions as referred to in Article 117(1), point (c), of Directive 2013/36/EU.
2. In case of such an event of adverse material effect on the risk profile of the group or its institutions established in a Member State that are important in accordance with Article 2(2) or its significant branches, competent authorities shall assess the consequences of such event on the group and its entities and determine:
(a)
the nature and severity of the event;
(b)
the impact or potential impact of the event on the available own funds and liquidity level of the group or its entities and whether the group and its entities continue to comply with Regulation (EU) No 575/2013 or Directive 2013/36/EU in adverse macroeconomic, microeconomic, and geopolitical conditions;
(c)
the ability to operate in severe business disruption;
(d)
risk of cross-border contagion and the potential systemic impact.
3. Upon being alerted of an event of adverse material effect on the risk profile by any member of the college of supervisors, or after having identified such event, the consolidating supervisor shall inform the members of the college of supervisors that supervise group entities or significant branches that are affected or likely to be affected by that event, and EBA. Observers, in particular the group-level resolution authority, shall be informed if the information is relevant for the performance of their tasks.
4. The consolidating supervisor and the members of the college of supervisors that supervise group entities or significant branches that are affected or likely to be affected by the event of adverse material effect shall monitor the situation and update the information referred to in paragraph 1, where applicable, immediately when relevant new information is available.
5. Based on the outcome of the assessment of the event of adverse material effect referred to in paragraph 2 and the foreseen evolution of that event, the consolidating supervisor and the relevant members of the college of supervisors may coordinate the development of a coordinated supervisory response.
Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.
