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.