AI Summary of Article 321 Inclusion of losses from merged or acquired entities or activities
Losses that arise from merged or acquired entities or activities must be integrated into the institution's loss data set once the relevant business indicators are accounted for, as outlined in Article 315(1). This includes losses observed during a decade preceding the merger or acquisition.
The European Banking Authority (EBA) is tasked with drafting regulatory technical standards to guide institutions in adjusting their loss data sets accordingly. These standards are to be submitted to the European Commission by 10 January 2027, with the Commission empowered to adopt them in line with Articles 10 to 14 of Regulation (EU) No 1093/2010.
Article 321 Inclusion of losses from merged or acquired entities or activities
1. Losses stemming from merged or acquired entities or activities shall be included in the loss data set as soon as the business indicator items related to those entities or activities are included in the institution's business indicator calculation in accordance with Article 315(1). To that end, institutions shall include losses observed during a 10-year period prior to the acquisition or merger.
2. EBA shall develop draft regulatory technical standards to specify how institutions are to determine the adjustments to their loss data set following the inclusion of losses from merged or acquired entities or activities as referred to in paragraph 1.
EBA shall submit those draft regulatory technical standards to the Commission by 10 January 2027.
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.