The EBA published its Opinion on a draft structural measure of banking separation impacting the limits to intra-group large exposures that France intends to implement at national level and found that such measure is consistent with the general principles governing the EU internal market.
France notified the EBA the intention of implementing a structural measure of banking separation aimed at reducing group risk profiles, which would be introduced through an order in application of French national law 2013-672.
This measure concerns new obligations on credit institutions that aim to restrict the exercise of speculative activities, while providing banking and market supervisory authorities with new control powers. In particular, it introduces a specific limit to intra-group large exposures between a group and its segregated subsidiary.
In its opinion on the matter, the EBA said that the measure did not aim at ring-fencing institutions alongside their national borders, but rather at restricting proprietary trading activities, regardless of their geographical location. On the basis of the information received, the EBA concluded that no evidence was found suggesting that this measure would be inconsistent with the general principles governing the EU internal market.
© EBA
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