Banking Establishment Approval Requirements

Extract

[...] The authorizations of credit institutions fall within the exclusive competence of the European Central Bank. When the the authorization request is made by an establishment other (financing company) and that the the delivery of the authorization falls within the competence of the ACPR, the conditions european the granting of the approval are mutatis mutandis translated word for word. The conditions of approval issued by national authorities are also, in substance, identical when the ACPR must grant an approval for an establishment from a third country. The approval criteria are relatively numerous. [...]

[...] Finally, the The technical and financial means of the establishment must be adapted to its activity program, notably in terms of human resources, computer means and other essential tools. The role of national regulators is also essential in the accreditation process. Although the BCE It is up to the authority to grant or refuse accreditation, the request is first examined by the national authorities, who then submit their conclusions to the ECB. In most cases, the opinion of the national regulators has a decisive influence on the final decision. [...]

[...] Any attempt to contest a refusal at the national level would therefore be ineffective, the national authority not being decision-making in the context of this process. Only the European authority holds the necessary competences to judge the validity of the final decision. Furthermore, it is essential to recall that no activity can be legally exercised by the establishment until formal approval has been obtained. The establishment is required to wait until the official delivery of this approval before being able to initiate its operations. [...]

[...] In addition, some administrative and accounting procedures must be put in place, as well as a a restrictive policy on executive compensation, this last one being the subject of a European framework strict in the banking sector to limit excessive remuneration and bonuses. Finally, a organisation allowing to clearly identify tasks, functions, and levels of responsibility collaboration is essential. These governance issues are not specific to banks or insurance companies. Any commercial enterprise must have a management to detect risks related to its activity. The example of maritime trade or the automotive industry is an illustration. However, in the banking sector, governance mechanisms are more strictly regulated by specific regulations. [...]

[...] It is essential to emphasize that this control varies depending on the specific activities of the establishment. Therefore, the nature of these activities directly influences the intensity and nature of the follow-up exercised by the regulators. B. Considerations related to the legal form of the establishment The legal form of the establishment is important when it comes to granting an approval. By closely analyzing the texts contained in the CRR and the regulation french, no provision excludes a specific social form in favor of another. [...]