Following two public consultations in 2016 and 2017, on 14 November 2017, the European Banking Authority (EBA) issued Guidelines on connected clients under Article 4(1)(39) of Regulation (EU) No 575/2013.
The guidelines provide detailed rules for the identification of connected clients based on the control relationship and economic dependencies as two distinctive features of the common risk (single risk). The guidelines apply to all parts of Regulation (EU) No 575/2013, technical standards and EBA Guidelines where the concept of connected clients is used, i.e. the large exposures regime, the categorisation of clients to the retail exposure class, the specification of items requiring stable funding, etc. The annex to the Guidelines illustrates concrete examples of how to identify clients belonging to an economically connected group.
The Guidelines come into effect on 1 January 2019. The CNB announced that it would apply these guidelines in its supervisory practice from the same date. These guidelines replace guidelines issued by the Committee of European Banking Supervisors (CEBS) on 11 December 2009.
21-2-2018