The European Commission has published a final report on its study on the feasibility of reducing obstacles to the transfer of assets within a cross border banking group during a financial crisis.

After considering several options the final report calls for a Directive which provides for:

  • A general regime. This regime provides that transfers are only allowed if they comply with the solvency and liquidity requirements set out under the Capital Requirements Directive. It also provides for a ceiling triggering a duty to have the transfer assessed by an independent auditor. This ceiling would be fixed at 10% of the transferor’s equity capital.
  • Exceptional arrangements. This would envisage the granting of exceptional individual exemptions during a limited period of time. The exceptional exemptions would enable transfers even if the conditions set by the general regime were not respected.

View Study on the feasibility of reducing obstacles to the transfer of assets within a cross border banking group during a financial crisis, 20 April 2010