Guidelines to Article 122a of the Capital Requirements Directive

Committee of European Banking Supervisors

On 31 December 2010, the Committee of European Banking Supervisors ("CEBS") published its final guidelines on the application of Article 122a of the Capital Requirements Directive ("CRD").

Article 122a requires credit institutions acting as originator or sponsor, to retain on an on-going basis a material net economic interest of not less than 5%. 122a also imposes due diligence and disclosure requirements on credit institutions acting as originators or sponsors.

CEBS expects its Members to adopt the guidelines into their national supervisory framework and apply them from 1 January 2011 (the date that the new Directive provisions come into force).

Date

January 5, 2011

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