On November 27, 2014, the EBA published an opinion and report on the perimeter of credit institutions. The EBA recommends that the definition of “credit institutions”, which is set out in the Capital Requirements Regulation but also used in other key legislation such as the BRRD, should be clarified by development of definitions of the terms “deposit” and “other repayable funds” as included in the CRR definition. The definition is important because the term “credit institutions” has been interpreted differently in EU member states. This means that an entity may be regulated in one Member State but would not be regulated in another Member State. The work forms part of the EU’s assessment of the shadow banking arena and consideration of what, if any, further steps should be taken to curb risks arising from shadow banking activities.

The EBA, in April 2014, provided its preliminary findings on the various interpretations across the EU member states of the term “credit institution.” Since then, the EBA has assessed the EU-established entities that are not credit institutions, are not otherwise subject to solo prudential requirements and which carry on bank-like activities under the scope of credit intermediation. The EBA notes the difference in treatment of such entities by member states and suggests that the European Commission may like further analysis of the sector carried out before determining whether EU legislation is required to regulate the sector.

The EBA opinion is available at:


and the report is available at: