On 3 December 2021, there was published in the Official Journal of the EU Commission Delegated Regulation (EU) of 3.12.2021 supplementing the Capital Requirements Regulation (CRR) with regard to regulatory technical standards (RTS) specifying the conditions in accordance with which consolidation is to be carried out in the cases referred to in Article 18(3) to (6) and Article 18(8) of the CRR.

The provisions of this delegated act specify the conditions for the application of different methods of prudential consolidation or of the equity method in the cases referred to in paragraphs 3 to 6 and in paragraph 8 of Article 18 of the CRR.

The draft RTS contain a list of elements to be taken into account by Member State competent authorities in assessing whether an undertaking should be fully or proportionally consolidated for prudential purposes, considering the risk of step-in for the banking group. The draft RTS also specify the conditions for the inclusion in the consolidated own funds of the amounts of Common Equity Tier 1 items and of the Additional Tier 1 and Tier 2 capital instruments issued by the undertakings included in the prudential scope of consolidation.

The Delegated Regulation enters into force on 23 December 2021.