Other authorisations and approvals

Published: 25/4/2023 Modified: 5/6/2023

Other authorisations include:

  • authorisation for a credit institution to merge another credit institution or other legal person by acquisition
  • authorisation for a credit institution to be merged by acquisition to another credit institution
  • authorisation for merger by formation of a new credit institution
  • authorisation for division by formation of new credit institutions
  • authorisation for disposal by formation of one or more credit institutions
  • authorisation for transfer of a portion of its assets and the same proportion of its liabilities to another credit institution
  • authorisation of the general operating conditions of a housing savings bank

Article 63 of the Credit Institutions Act governs other authorisations.

FORMS:

Prior approval of the CNB to acquire individual holdings is defined in Article 149 of the Credit Institutions Act and relates to:

  • establishing an undertaking or concluding a legal arrangement that would make the credit institution gradually or immediately, the direct or indirect holder of a holding of 20% or more in another legal person, if the holding exceeds 10% of the credit institution's eligible capital;
  • establishing an undertaking or concluding a legal arrangement that would make the credit institution the direct or an indirect holder of a majority holding in the capital or of a majority of the voting rights in another legal person.

The same article of the Credit Institutions Act also defines the documentation that should be attached to the application for prior approval for the said investments.

By way of derogation from the previous provisions, a credit institution shall not be required to obtain prior approval of the CNB to conclude a legal arrangement that would result in the direct acquisition of shares or holdings it intends to hold in the trading book.

Other approvals/authorisations are set out in the Credit Institutions Act as a national law, i.e. they are not explicitly stated in the EU law. The ECB applies those powers in the case of significant credit institutions. These national powers are not harmonized at European level. For more information, see the following link.