'credit institution' means credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013;

'investment firm' means investment firm as defined in point (2) of Article 4(1) of Regulation (EU) No 575/2013;

'institution' means institution as defined in point (3) of Article 4(1) of Regulation (EU) No 575/2013;

'insurance undertaking' means insurance undertaking as defined in point (5) of Article 4(1) of Regulation (EU) No 575/2013;

'reinsurance undertaking' means reinsurance undertaking as defined in point (6) of Article 4(1) of Regulation (EU) No 575/2013;

'management body' means an institution’s body or bodies, which are appointed in accordance with national law, which are empowered to set the institution’s strategy, objectives and overall direction, and which oversee and monitor management decision-making, and include the persons who effectively direct the business of the institution;

'management body in its supervisory function' means the management body acting in its role of overseeing and monitoring management decision-making;

'management body in its management function' means the management body acting in its role of directing an institution and includes the persons who effectively direct the business of the institution;

'senior management' means those natural persons who exercise executive functions within an institution and are directly accountable to the management body but are not members of that body, and who are responsible for the day-to-day management of the institution under the direction of the management body;

'key function holders' means the persons who have significant influence over the direction of an institution but are not members of the management body, including the heads of internal control functions and the chief financial officer, where those heads or that officer are not members of the management body;

'internal control functions' means risk management, compliance and internal audit functions;

'heads of internal control functions' means the persons at the highest hierarchical level responsible for effectively managing the day-to-day operation of the internal control functions of an institution;

'chief financial officer' means the person with overall responsibility for the financial resources management, financial planning and financial reporting of an institution;

'systemic risk' means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy;

'model risk' means model risk as defined in Article 4(1), point (52b), of Regulation (EU) No 575/2013;

'originator' means originator as defined in point (13) of Article 4(1) of Regulation (EU) No 575/2013;

'sponsor' means sponsor as defined in point (14) of Article 4(1) of Regulation (EU) No 575/2013;

'parent undertaking' means parent undertaking as defined in point (15) of Article 4(1) of Regulation (EU) No 575/2013;

'subsidiary' means subsidiary as defined in point (16) of Article 4(1) of Regulation (EU) No 575/2013;

'branch' means branch as defined in point (17) of Article 4(1) of Regulation (EU) No 575/2013;

'ancillary services undertaking' means ancillary services undertaking as defined in point (18) of Article 4(1) of Regulation (EU) No 575/2013;

'asset management company' means asset management company as defined in point (19) of Article 4(1) of Regulation (EU) No 575/2013;

'financial holding company' means financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;

'mixed financial holding company' means mixed financial holding company as defined in point (21) of Article 4(1) of Regulation (EU) No 575/2013;

'mixed activity holding company' means mixed activity holding company as defined in point (22) of Article 4(1) of Regulation (EU) No 575/2013;

'financial institution' means financial institution as defined in point (26) of Article 4(1) of Regulation (EU) No 575/2013;

'financial sector entity' means financial sector entity as defined in point (27) of Article 4(1) of Regulation (EU) No 575/2013;

'parent institution in a Member State' means parent institution in a Member State as defined in point (28) of Article 4(1) of Regulation (EU) No 575/2013;

'EU parent institution' means EU parent institution as defined in point (29) of Article 4(1) of Regulation (EU) No 575/2013;

'parent financial holding company in a Member State' means parent financial holding company in a Member State as defined in point (30) of Article 4(1) of Regulation (EU) No 575/2013;

'EU parent financial holding company' means EU parent financial holding company as defined in point (31) of Article 4(1) of Regulation (EU) No 575/2013;

'parent mixed financial holding company in a Member State' means parent mixed financial holding company in a Member State as defined in point (32) of Article 4(1) of Regulation (EU) No 575/2013;

'EU parent mixed financial holding company' means EU parent mixed financial holding company as defined in point (33) of Article 4(1) of Regulation (EU) No 575/2013;

'stand-alone institution in the Union' means an institution that is not subject to prudential consolidation in the Union pursuant to Part One, Title II, Chapter 2, of Regulation (EU) No 575/2013, and that has no EU parent undertaking subject to such prudential consolidation;

'systemically important institution' means an EU parent institution, an EU parent financial holding company, an EU parent mixed financial holding company or an institution the failure or malfunction of which could lead to systemic risk;

'central counterparty' means central counterparty as defined in point (34) of Article 4(1) of Regulation (EU) No 575/2013;

'participation' means participation as defined in point (35) of Article 4(1) of Regulation (EU) No 575/2013;

'qualifying holding' means qualifying holding as defined in point (36) of Article 4(1) of Regulation (EU) No 575/2013;

'control' means control as defined in point (37) of Article 4(1) of Regulation (EU) No 575/2013;

'close links' means close links as defined in point (38) of Article 4(1) of Regulation (EU) No 575/2013;

'competent authority' means competent authority as defined in point (40) of Article 4(1) of Regulation (EU) No 575/2013;

'consolidating supervisor' means consolidating supervisor as defined in point (41) of Article 4(1) of Regulation (EU) No 575/2013;

'authorisation' means authorisation as defined in point (42) of Article 4(1) of Regulation (EU) No 575/2013;

'home Member State' means home Member State as defined in point (43) of Article 4(1) of Regulation (EU) No 575/2013;

'host Member State' means host Member State as defined in point (44) of Article 4(1) of Regulation (EU) No 575/2013;

'ESCB central banks' means ESCB central banks as defined in point (45) of Article 4(1) of Regulation (EU) No 575/2013;

'central banks' means central banks as defined in point (46) of Article 4(1) of Regulation (EU) No 575/2013;

'consolidated situation' means consolidated situation as defined in point (47) of Article 4(1) of Regulation (EU) No 575/2013;

'consolidated basis' means consolidated basis as defined in point (48) of Article 4(1) of Regulation (EU) No 575/2013;

'sub-consolidated basis' means sub-consolidated basis as defined in point (49) of Article 4(1) of Regulation (EU) No 575/2013;

'financial instrument' means financial instrument as defined in point (50) of Article 4(1) of Regulation (EU) No 575/2013;

'own funds' means own funds as defined in point (118) of Article 4(1) of Regulation (EU) No 575/2013;

'eligible capital' means eligible capital as defined in Article 4(1), point (71), of Regulation (EU) No 575/2013;

'operational risk' means operational risk as defined in point (52) of Article 4(1) of Regulation (EU) No 575/2013;

'credit risk mitigation' means credit risk mitigation as defined in point (57) of Article 4(1) of Regulation (EU) No 575/2013;

'securitisation' means securitisation as defined in point (61) of Article 4(1) of Regulation (EU) No 575/2013;

'securitisation position' means securitisation position as defined in point (62) of Article 4(1) of Regulation (EU) No 575/2013;

'securitisation special purpose entity' means securitisation special purpose entity as defined in point (66) of Article 4(1) of Regulation (EU) No 575/2013;

'discretionary pension benefits' means discretionary pension benefits as defined in point (73) of Article 4(1) of Regulation (EU) No 575/2013;

'trading book' means trading as defined in point (86) of Article 4(1) of Regulation (EU) No 575/2013;

'regulated market' means regulated market as defined in point (92) of Article 4(1) of Regulation (EU) No 575/2013;

'leverage' means leverage as defined in point (93) of Article 4(1) of Regulation (EU) No 575/2013;

'risk of excessive leverage' means risk of excessive leverage as defined in point (94) of Article 4(1) of Regulation (EU) No 575/2013;

'external credit assessment institution' means external credit assessment institution as defined in point (98) of Article 4(1) of Regulation (EU) No 575/2013;

'internal approaches' means the internal ratings based approach referred to in Article 143(1), the internal model approach referred to in Article 221, the internal model method referred to in Article 283, the alternative internal model approach referred to in Article 325az, and the internal assessment approach referred to in Article 265(2), of Regulation (EU) No 575/2013;

'resolution authority' means a resolution authority as defined in point (18) of Article 2(1) of Directive 2014/59/EU of the European Parliament and of the Council ( 1 );

'global systemically important institution' or 'G-SII' means a G-SII as defined in point (133) of Article 4(1) of Regulation (EU) No 575/2013;

'non-EU global systemically important institution' or 'non-EU G-SII' means a non-EU G-SII as defined in point (134) of Article 4(1) of Regulation (EU) No 575/2013;

'group' means a group as defined in point (138) of Article 4(1) of Regulation (EU) No 575/2013;

'third-country group' means a group of which the parent undertaking is established in a third country;

'gender neutral remuneration policy' means a remuneration policy based on equal pay for male and female workers for equal work or work of equal value;

'large institution' means large institution as defined in Article 4(1), point (146), of Regulation (EU) No 575/2013;

'periodic penalty payment' means a periodic pecuniary enforcement measure aimed at ending ongoing breaches of national provisions transposing this Directive, breaches of Regulation (EU) No 575/2013 or breaches of decisions taken by a competent authority on the basis of those provisions or that Regulation and compelling the natural or legal person to return to compliance with the infringed provisions or decisions;

'environmental, social and governance risk' or 'ESG risk' means environmental, social and governance risk as defined in Article 4(1), point (52d), of Regulation (EU) No 575/2013;

'climate neutrality' means the overall objective of achieving climate neutrality by 2050 as set out in Article 2(1) of Regulation (EU) 2021/1119 of the European Parliament and of the Council ( 2 );

'crypto-asset' means a crypto-asset as defined in Article 3(1), point (5), of Regulation (EU) 2023/1114 of the European Parliament and of the Council ( 3 ) that is not a central bank digital currency.

financial holding companies and mixed financial holding companies that have been granted approval in accordance with Article 21a of this Directive;

designated institutions controlled by an EU parent financial holding company, an EU parent mixed financial holding company, a parent financial holding company in a Member State or a parent mixed financial holding company in a Member State where the relevant parent is not subject to approval in accordance with Article 21a(4) of this Directive; and

financial holding companies, mixed financial holding companies or institutions designated pursuant to point (d) of Article 21a(6) of this Directive.