The European Central Bank revised its guide for bank licence applications across the Single Supervisory Mechanism. Published on 18 September, the document replaces the ECB’s 2019 guide. It applies to initial authorisations, bridge-bank applications and extensions of existing licences.
The guide is intended to make the legal framework, assessment criteria and application process easier to understand. It also aims to ensure greater consistency in the licensing of credit institutions across SSM jurisdictions.
ASSESSMENTS REMAIN PROPORTIONATE TO RISK
Supervisors will consider an applicant’s expected size, complexity, business model and risk profile. The document is a practical tool that does not lay down legally binding requirements or replace the relevant requirements under EU or national law.
The updated framework covers the information supervisors expect during the authorisation process and how applications are assessed. The guide applies to all applications for a licence to become a credit institution under the Capital Requirements Regulation.
FUTURE REVIEWS WILL TRACK LEGAL CHANGES
The ECB plans to review the guide regularly as supervisory practices and European or international rules develop. Future judgments from the Court of Justice of the European Union interpreting the Capital Requirements Directive may also lead to revisions.
Since 4 November 2014, the ECB has been exclusively competent to grant and withdraw licences for all credit institutions in SSM countries, exercising that competence together with national competent authorities.