Article 89 - Risk weighting and prohibition of qualifying holdings outside the financial sector
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Risk weighting and prohibition of qualifying holdings outside the financial sector
A qualifying holding, the amount of which exceeds 15 % of the eligible capital of the institution, in an undertaking which is not one of the following shall be subject to the provisions laid down in paragraph 3:
a financial sector entity;
a direct extension of banking;
ancillary to banking;
leasing, factoring, the management of unit trusts, the management of data processing services or any other similar activity.
for the purpose of calculating the capital requirement in accordance with Part Three, institutions shall apply a risk weight of 1 250 % to the greater of the following:
the amount of qualifying holdings referred to in paragraph 1 in excess of 15 % of eligible capital;
Competent authorities shall publish their choice of (a) or (b).
For the purposes of point (b) of paragraph 1, EBA shall issue guidelines specifying the following concepts:
activities that are a direct extension of banking;
activities ancillary to banking;
Those guidelines shall be adopted in accordance with Article 16 of Regulation (EU) No 1093/2010.