Vejonis said that the amendments considerably narrow the range of possible candidates for the liquidators and insolvency administrators for credit institutions
, and restricts the opportunity to find the best candidate for the liquidation or insolvency process.
Since 2012 the European Commission proposed a banking union based on new principles to overcome the financial crisis and not to involve governments in saving credit institutions
within of financial crises
99/2006 prohibits that any natural, legal person or entity without legal personality, which is not a credit institution
, should be engaged in an activity of receiving deposits or other repayable funds from the public or an activity of attracting and/or managing amounts of money from the contributions of members of groups of people constituted for the purpose of receiving collective funds and granting credits/loans from the funds thus accumulated for the purchase of goods and/or services by their members.
Given the financial crisis and cyclical mechanisms that contributed to its onset and worsened its effects, there have been introduced similar requirements for the investment firms and the credit institutions
, that provide the obligation to hold, in addition to its own funds, a countercyclical damper of the capital to ensure that they accumulate, during periods of economic growth, a sufficient capital base capable to absorb the losses during the periods of the crisis.
Considering the fact that the draft legislation is aimed towards influencing the dividend policy of credit institutions
, which could in turn influence their capitalization, and the fact that the draft legislation does not influence business operators in the financial sector in the same way, the Bank of Estonia believes consulting with the European Central Bank in this case to be justified.
In conclusion for any credit institution
the successful coverage of the first stage within the authorization process (materialized in attaining the set-up approval) conditions its set-up as legal entity by registering to the Trade Register Office whilst the coverage of the second stage (materialized in attaining the operating permit) conditions only the possibility to perform the activities for which it was authorized by the National Bank of Romania.
The prior approval of the Bank of Greece is required for a credit institution
to invest in other companies in amounts that exceed the lower of GRD 700 million or 2 percent of capital.
By contrast, a branch of a credit institution
, even if the credit institution
is a member of a stock exchange in its home country, is governed by a policy of national treatment.
Moscow: The regulator approved a new version of the requirements for credit institutions
to disclose information about their operations.
The apex bank said that it has revoked the licenses of three more credit institutions
in order to clean up the domestic banking sector.
According to the Code of Conduct on the Handling of Borrowers facing financial difficulties, the CBC expects and demands all credit institutions
to take into account the financial realities of their customers, acknowledging that customers who are experiencing financial difficulties are in a particularly difficult position and that they depend on the credit institution
to assist them during this difficult time.
It is recommended that most individuals currently negotiating a loan (of any type and currency) with any credit institution
seek professional advice.