Bank Intervention And Restructuring Act-Regulation - Birg-V

Original Language Title: Bankeninterventions- und –restrukturierungsgesetz-Verordnung – BIRG-V

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2. Regulation of the Financial Markets Authority (FMA) establishing the criteria for the materiality of subordinate, associated or participating institutions for the purposes of the Banking Intervention and Restructuring Act (Banking interventions) and -restructuration act-Regulation-BIRG-V)

Pursuant to Section 7 (5) and Section 14 (6) of the Banking Intervention and Restructuring Act-BIRG, BGBl. I No 160/2013, shall be arranged:

Criteria for the materiality of subordinate, associated or participating institutions

§ 1. The following criteria are decisive for the materiality of a subordinated, assigned or participating institute:

1.

its contribution to the profit of the group or

2.

its contribution to the financing of the group or

3.

the extent of the shares of the assets, liabilities or own resources of the group held by the institution, or

4.

integration into core business units or critical functions of the group; or

5.

the central freezing of operational functions, administrative functions or risk functions, or

6.

the extent of the risks borne by the institution which, in the worst case scenario, could endanger the survival of the group; or

7.

the risk to the group as a whole when the institution is sold or liquidate.

The existence of materiality in a subordinated, assigned or participating institute

§ 2. (1) An institution is essential for the purposes of § 14 BIRG, if, on the basis of one or more of the criteria listed in § 1, within the scope of a proper handling of the group

1.

shall be subject to measures necessary for the proper handling of the group within the meaning of Article 15 (2) of the BIRG, or

2.

the maintenance of the work of the institute is necessary for the proper handling of the group within the meaning of § 15 para. 2 BIRG.

(2) Institutes which have been identified as being essential for the purposes of § 14 BIRG pursuant to paragraph 1 shall also be considered to be essential for the purposes of § 7 BIRG.

Materiality due to negative effects on the financial stability of a Member State

§ 3. Notwithstanding the other provisions of this Regulation, a parent, associated or participating institution shall, in any event, be essential if, in the event of its insolvency, substantial negative effects on the financial stability of a Member State, in which it is established or carries out its business activities.

entry into force

§ 4. This Regulation shall enter into force with the day following the presentation.

Ettl Kumpfmüller