AI Summary of Article 84 Minority interests included in consolidated Common Equity Tier 1 capital
This regulation outlines the method for calculating minority interests included in a subsidiary's Common Equity Tier 1 capital within consolidated financial reports. Institutions must deduct specific capital requirements based on the subsidiary's type, ensuring compliance with both local and EU regulations.
Moreover, competent authorities may grant waivers where certain conditions are met, enabling parent financial holding companies to exclude minority interests from consolidated calculations. Additionally, provisions exist for institutions within cross-guarantee schemes, allowing for full recognition of minority interests under specific criteria.
Article 84 Minority interests included in consolidated Common Equity Tier 1 capital
1. Institutions shall determine the amount of minority interests of a subsidiary that is included in consolidated Common Equity Tier 1 capital by subtracting from the minority interests of that undertaking the result of multiplying the amount referred to in point (a) by the percentage referred to in point (b) as follows:
(a) the Common Equity Tier 1 capital of the subsidiary minus the lower of the following:
the amount of Common Equity Tier 1 capital of that subsidiary required to meet the following:
(1) where the subsidiary is one of those listed in Article 81(1), point (a), of this Regulation but not an investment firm or an intermediate investment holding company, the sum of the requirement laid down in Article 92(1), point (a), of this Regulation, the requirements referred to in Articles 458 and 459 of this Regulation, the specific own funds requirements referred to in Article 104 of Directive 2013/36/EU and the combined buffer requirement defined in Article 128, point (6), of that Directive, or any local supervisory regulations in third countries insofar as those requirements are to be met by Common Equity Tier 1 capital;