AI Summary of Article 315 Adjustments to the business indicator
The recent regulatory framework stipulates that institutions must incorporate business indicator items from merged or acquired entities into their calculations from the effective date of such transactions, covering the preceding three financial years.
Additionally, institutions may seek approval from the competent authority to exclude business indicator sums related to disposed entities. The European Banking Authority (EBA) is tasked with drafting regulatory technical standards that will clarify the methodology for these adjustments, the criteria for granting exclusions, and the timing for such adjustments. The EBA will present these standards to the Commission by 10 January 2026.
Article 315 Adjustments to the business indicator
1. Institutions shall include business indicator items of merged or acquired entities or activities in their business indicator calculation from the time of the merger or acquisition, as applicable, and shall cover the last three financial years.
2. Institutions may request permission from the competent authority to exclude from the business indicator amounts related to disposed entities or activities.
3. EBA shall develop draft regulatory technical standards to specify the following:
(a) how institutions are to determine the adjustments to the business indicator referred to in paragraphs 1 and 2;
(b) the conditions under which competent authorities are able to grant the permission referred to in paragraph 2;
(c) the timing for the adjustments referred to in paragraph 2.
EBA shall submit those draft regulatory technical standards to the Commission by 10 January 2026.
Power is delegated to the Commission to supplement this Regulation by adopting the regulatory technical standards referred to in the first subparagraph of this paragraph in accordance with Articles 10 to 14 of Regulation (EU) No 1093/2010.