Regulatory Alerts2025-01-01
Final Report on Draft RTS on the Threshold for Banking-Type Ancillary Services
The European Banking Authority issued final Regulatory Technical Standards establishing a dynamic threshold for Central Securities Depositories to designate credit institutions for banking-type ancillary services without full banking authorization. The framework sets minimum and maximum absolute thresholds of EUR 3.75 billion and EUR 6.25 billion, respectively, alongside relative caps of 1.5% and 2.5% of annual settlement volume, adjusted for currency liquidity and settlement agent creditworthiness. These thresholds trigger escalating prudential and risk management requirements, ranging from basic credit assessments to advanced capital surcharges and liquidity reporting, to mitigate financial stability risks.
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