<p class="title-article-norm" id="id-f074154d-0f80-4d5d-addd-756ad4e43ca8">Article 23</p>
      <p class="stitle-article-norm">Undertakings in third countries</p>
      <p class="norm">For the purposes of applying supervision on a <a class="definition" data-for="definitionTooltip" data-tip="consolidated basis">consolidated basis</a> in accordance with this Chapter, the terms ‘<a class="definition" data-for="definitionTooltip" data-tip="investment firm">investment firm</a>’, ‘<a class="definition" data-for="definitionTooltip" data-tip="credit institution">credit institution</a>’, <a class="definition" data-for="definitionTooltip" data-tip="financial institution">financial institution</a>', and ‘<a class="definition" data-for="definitionTooltip" data-tip="institution">institution</a>’ shall also apply to undertakings established in third countries, which, were they established in the Union, would fulfil the definitions of those terms in Article 4.</p>

Article 4

<div><p class="norm">‘consolidated basis’ means on the basis of the consolidated situation.</p>
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<div><p class="norm">‘credit institution’ means an undertaking the business of which consists of any of the following:</p>
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                        <span>(a) </span>
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                        <p class="norm">to take deposits or other repayable funds from the public and to grant credits for its own account.</p>
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                        <span>(b) </span>
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                        <p class="norm">to carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0065">2014/65/EU</a> of the European Parliament and of the Council (<a href="#E0006" id="src.E0006" >
                              <span class="superscript">6</span>
                           </a>), where one of the following applies, but the undertaking is not a commodity and emission allowance dealer, a collective investment undertaking or an insurance undertaking:</p>
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                              <span>(i) </span>
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                              <p class="norm">the total value of the consolidated assets of the undertaking is equal to or exceeds EUR 30 billion.</p>
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                              <span>(ii) </span>
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                              <p class="norm">the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in that group that individually have total assets of less than EUR 30 billion and that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0065">2014/65/EU</a> is equal to or exceeds EUR 30 billion; or</p>
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                              <span>(iii) </span>
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                              <p class="norm">the total value of the assets of the undertaking is less than EUR 30 billion, and the undertaking is part of a group in which the total value of the consolidated assets of all undertakings in the group that carry out any of the activities referred to in points (3) and (6) of Section A of Annex I to Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0065">2014/65/EU</a> is equal to or exceeds EUR 30 billion, where the consolidating supervisor, in consultation with the supervisory college, so decides in order to address potential risks of circumvention and potential risks for the financial stability of the Union.</p>
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                        <p class="list">for the purposes of points (b)(ii) and (b)(iii), where the undertaking is part of a third‐country group, the total assets of each branch of the third‐country group authorised in the Union shall be included in the combined total value of the assets of all undertakings in the group.</p>
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<div><p class="norm">‘financial institution’ means an undertaking other than an institution and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points 2 to 12 and point 15 of Annex I to Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013L0036">2013/36/EU</a>, including an investment firm, a financial holding company, a mixed financial holding company, an investment holding company, a payment institution within the meaning of Directive (EU) <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32015L2366">2015/2366</a> of the European Parliament and of the Council (<a href="#E0011" id="src.E0011" >
                        <span class="superscript">11</span>
                     </a>), and an asset management company, but excluding insurance holding companies and mixed‐activity insurance holding companies as defined in points (f) and (g) of Article 212(1) of Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32009L0138">2009/138/EC</a>.</p>
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<div><p class="norm">‘institution’ means a credit institution authorised under Article 8 of Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32013L0036">2013/36/EU</a> or an undertaking as referred to in Article 8a(3) thereof.</p>
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<div><p class="norm">‘investment firm’ means an investment firm as defined in point (1) of Article 4(1) of Directive <a target="_blank" href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32014L0065">2014/65/EU</a> which is authorised under that Directive but excludes credit institutions.</p>
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Undertakings in third countries

Article 23

Consultations

Final Drafts

Q&As

Guidelines

Opinions

Other

Allgemeinverfügungen

Merkblätter

Erläuternde Aussagen

Rundschreiben

Regulations

Decisions

Application of stricter requirements by institutions

Definitions specific to capital requirements for credit risk

Application of requirements on an individual basis

General requirements for own funds and eligible liabilities

Minority interests that qualify for inclusion in consolidated Common Equity Tier 1 capital

Qualifying Additional Tier 1, Tier 1, Tier 2 capital and qualifying own funds

Qualifying Additional Tier 1 and Tier 2 capital issued by a special purpose entity

Minority interests included in consolidated Common Equity Tier 1 capital

Qualifying Tier 1 instruments included in consolidated Tier 1 capital

Qualifying Tier 1 capital included in consolidated Additional Tier 1 capital

Qualifying own funds included in consolidated own funds

Qualifying own funds instruments included in consolidated Tier 2 capital

Qualifying eligible liabilities instruments

MINORITY INTEREST AND ADDITIONAL TIER 1 AND TIER 2 INSTRUMENTS ISSUED BY SUBSIDIARIES

Risk weighting and prohibition of qualifying holdings outside the financial sector

QUALIFYING HOLDINGS OUTSIDE THE FINANCIAL SECTOR

GENERAL REQUIREMENTS, VALUATION AND REPORTING

General principles governing the use of the different approaches

OWN FUNDS REQUIREMENTS FOR OPERATIONAL RISK

Own funds requirements for foreign-exchange risk

Own funds requirements for commodities risk

Use of internal models to calculate own funds requirements

OWN FUNDS REQUIREMENTS FOR SETTLEMENT RISK

Alternative to using CVA methods for calculating own funds requirements

OWN FUNDS REQUIREMENTS FOR CREDIT VALUATION ADJUSTMENT RISK

Definition of an institution for large exposures purposes

Capacity to identify and manage large exposures

Compliance with large exposures requirements

Calculating additional own funds requirements for large exposures in the trading book

Procedures to prevent institutions from avoiding the additional own funds requirement

Calculating the effect of the use of credit risk mitigation techniques

REQUIREMENTS FOR SPONSOR AND ORIGINATOR INSTITUTIONS

Reporting obligation and reporting format

Operational requirements for holdings of liquid assets

Currencies with constraints on the availability of liquid assets

Outflows from credit and liquidity facilities

General rules for the calculation of the net stable funding ratio

Derogation for small and non-complex institutions

Available stable funding for the simplified calculation of the net stable funding ratio

Required stable funding for the simplified calculation of the net stable funding ratio

Exposures excluded from the total exposure measure

Calculation of the exposure value of assets

Calculation of the exposure value of derivatives

Additional provisions on the calculation of the exposure value of written credit derivatives

Counterparty credit risk add-on for securities financing transactions

Calculation of the exposure value of off-balance-sheet items

Calculation of the exposure value of regular-way purchases and sales awaiting settlement

Reporting on prudential requirements and financial information

Specific reporting requirements for market risk

Feasibility report on the integrated reporting system

Non-material, proprietary or confidential information

Disclosures by small and non-complex institutions

Disclosure of risk management objectives and policies

Disclosure of own funds and eligible liabilities

Disclosure of own funds requirements and risk-weighted exposure amounts

Disclosure of exposures to counterparty credit risk

Disclosure of countercyclical capital buffers

Disclosure of indicators of global systemic importance

Disclosure of exposures to credit risk and dilution risk

Disclosure of encumbered and unencumbered assets

Disclosure of the use of the Standardised Approach

Disclosure of operational risk management

Disclosure of exposures to interest rate risk on positions not held in the trading book

Disclosure of exposures to securitisation positions

Disclosure of environmental, social and governance risks (ESG risks)

TECHNICAL CRITERIA ON TRANSPARENCY AND DISCLOSURE

Disclosure of the use of the IRB Approach to credit risk

Disclosure of the use of credit risk mitigation techniques

Disclosure of the use of the Advanced Measurement Approaches to operational risk

QUALIFYING REQUIREMENTS FOR THE USE OF PARTICULAR INSTRUMENTS OR METHODOLOGIES

Macroprudential or systemic risk identified at the level of a Member State

Review of the phasing-in of the liquidity coverage requirement

Alternative standardised approach for market risk

Objections to regulatory technical standards

Own funds requirements, unrealised gains and losses measured at fair value and deductions

Transitional provisions for disclosure of own funds

Large exposures, own funds requirements, leverage and the Basel I Floor

Prudential treatment of exposures related to environmental and/or social objectives

Own funds requirements for exposures in the form of covered bonds

Capital instruments subscribed by public authorities in emergency situations

Holdings of eligible liabilities instruments

CIUs with an underlying portfolio of euro area sovereign bonds

Method for the calculation of the exposure value of derivative transactions

Review of capital instruments which may be written down or converted at the point of non-viability

Report on overshootings and supervisory powers to limit distributions

Deduction of defined benefit pension fund assets from Common Equity Tier 1 items

Amendment of Regulation (EU) No 648/2012

TRANSITIONAL PROVISIONS, REPORTS, REVIEWS AND AMENDMENTS

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Article 23 - Undertakings in third countries

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