On 11 November 2021, the European Banking Authority (EBA) published its final report, ‘Guidelines on a common assessment methodology for granting authorisation as a credit institution under Article 8(5) of Directive 2013/36/EU’. These draft Guidelines are targeted to all Member State competent authorities in charge of granting authorisation as a credit institution and sets out a common assessment methodology (CAM) to be used. They have been drafted in accordance with Article 8(5) of the Capital Requirements Directive IV.

The draft Guidelines do the following:

  • advocate a risk-based approach;
  • pursue the principle of proportionality for all relevant assessment criteria;
  • apply to both traditional and innovative business models and/or delivery mechanisms as they confirm their neutrality to technology; and
  • underscore the importance of consistency with the supervisory approaches applied to going concerns.

The Guidelines also set out money laundering or terrorist financing risks and highlights the importance of cooperation with the anti-money laundering supervisor and other public bodies.