Germany’s Federal Financial Supervisory Authority has incorporated European Banking Authority guidelines into its administrative practice for determining activities under Article 4(1)(18) of the Capital Requirements Regulation. The circular clarifies when a company is considered dependent on banking activities or financial resources provided within its group. Dependence on banking activities arises when a company’s main activity relies on banking products or services, including financing, to such an extent that its business model could not operate or would be materially impaired without them. Dependence does not arise if the company could obtain those products or services outside the group or provide them internally without materially impairing its business model. Dependence on financial resources is limited to loan transactions, guarantees and credit commitments.
Germany’s Federal Financial Supervisory Authority adopts EBA criteria for identifying banking dependent activities
Germany’s Federal Financial Supervisory Authority has adopted EBA guidelines for identifying banking dependent activities under the Capital Requirements Regulation. A company is dependent where its business model could not operate or would be materially impaired without group provided banking products or services, while dependence on financial resources covers loan transactions, guarantees and credit commitments.