Procedure for the evaluation of qualifying holding

  • Section:

The Credit Institution Law provides that a person or several persons acting in concert on the basis of an agreement who meet the requirements of Section 16 and ensure fulfilment of the conditions of Section 19 and the criteria laid down in Section 29, Paragraph five of this Law may acquire a direct or indirect qualifying holding in a credit institution; moreover, such person needs to be financially stable in order, if necessary, to be able to make additional investment to restore the capital of the credit institution by ensuring the conformity of the capital of the credit institution with the requirements of the law and the fulfilment of the requirements governing the operation of credit institutions.

If a person wishes to increase his or her qualifying holding, thereby reaching or exceeding 20, 33 or 50 per cent of the equity capital of the credit institution or of the number of the voting stock, or if the credit institution becomes a subsidiary of such person, the person shall notify the Financial and Capital Market Commission thereof in writing in advance.

The documents to be submitted and the evaluation procedures determined by the Financial and Capital Market Commission’s Regulations No 92 List of Information Required for Notification of the Acquisition or Increase of a Qualifying Holding and General Principles and Procedure for the Examination of Notification of 14.07.2020.

The time limit for evaluation of the acquisition of qualifying holding in a credit institution shall be calculated in accordance with the calendar of the working time of the European Central Bank, from the date on which the acquirer is informed that application is complete. The time limit for consideration shall be 60 working days.

The decision on consent for the acquisition of qualifying holding is adopted by the European Central Bank.

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