Updated 21/12/2024
In force

Version from: 09/07/2024
Amendments (3)
There is currently no Level 2 legal act based on or specifying Article 89.
QA2014_749 - Own funds
Status: Final
Updated: 26/03/2021
Art. 89
QA2022_6395 - Market risk
Status: Under Review
Published: 11/03/2022
Art. 89
QA2013_367 - Own funds
Status: Final
Updated: 26/03/2021
Art. 89(1)
QA2013_630 - Own funds
Status: Final
Updated: 26/03/2021
Art. 89(1)(b)
Public Consultation on a draft Guideline and Recommendation
Published: 31/10/2016
Art. 89(3)
ECB/2017/9
Published: 03/11/2016
Art. 89(3)
ECB/2022/12
Published: 25/06/2021
Art. 89(3)
Regulation 2016/445
Art. 89(3)
Teilwiderruf der Allgemeinverfügung zu Art. 89 CRR
Published: 03/08/2016
Art. 89
Artikel 89 der CRR
Published: 14/03/2014
Art. 89(3)
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CRR ToolCapital Requirements Regulation (CRR)
Article 89

Article 89 - Risk weighting and prohibition of qualifying holdings outside the financial sector

Attention! This article will be amended on 01/01/2025. Please consult Regulation 2024/1623 to review the changes that will be made to the article.

Article 89

Risk weighting and prohibition of qualifying holdings outside the financial sector

1.  

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) 

a financial sector entity;

(b) 

an undertaking, that is not a financial sector entity, carrying on activities which the competent authority considers to be any of the following:

(i) 

a direct extension of banking;

(ii) 

ancillary to banking;

(iii) 

leasing, factoring, the management of unit trusts, the management of data processing services or any other similar activity.

2.  
The total amount of the qualifying holdings of an institution in undertakings other than those referred to in points (a) and (b) of paragraph 1 that exceeds 60 % of its eligible capital shall be subject to the provisions laid down in paragraph 3.
3.  

Competent authorities shall apply the requirements laid down in point (a) or (b) to qualifying holdings of institutions referred to in paragraphs 1 and 2:

(a) 

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:

(i) 

the amount of qualifying holdings referred to in paragraph 1 in excess of 15 % of eligible capital;

(ii) 

the total amount of qualifying holdings referred to in paragraph 2 that exceed 60 % of the eligible capital of the institution;

(b) 

the competent authorities shall prohibit institutions from having qualifying holdings referred to in paragraphs 1 and 2 the amount of which exceeds the percentages of eligible capital laid down in those paragraphs.

Competent authorities shall publish their choice of (a) or (b).

4.  

For the purposes of point (b) of paragraph 1, EBA shall issue guidelines specifying the following concepts:

(a) 

activities that are a direct extension of banking;

(b) 

activities ancillary to banking;

(c) 

similar activities.

Those guidelines shall be adopted in accordance with Article 16 of Regulation (EU) No 1093/2010.