AI Summary of Article 81 Minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital
This document delineates the criteria under which minority interests may be recognised as Common Equity Tier 1 items. Specifically, a subsidiary must fall within designated categories, including institutions and investment firms, and must be fully consolidated in accordance with relevant regulatory frameworks.
Moreover, only those Common Equity Tier 1 items owned by external parties—distinct from the entities included in the consolidation—will qualify. Importantly, any minority interests funded by the parent undertaking or its subsidiaries will not be recognised as such in the consolidated Common Equity Tier 1 capital.
Article 81 Minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital
1.Minority interests shall comprise the sum of Common Equity Tier 1 items of a subsidiary where the following conditions are met:
(a) the subsidiary is one of the following:
(i) an institution;
(ii) an undertaking that is subject by virtue of applicable national law to the requirements of this Regulation and of Directive 2013/36/EU;
(iii) an intermediate financial holding company or intermediate mixed financial holding company that is subject to the requirements of this Regulation on a sub-consolidated basis, or an intermediate investment holding company that is subject to the requirements of Regulation (EU) 2019/2033 on a consolidated basis;
(iv) an investment firm;