Article 8
Conditions for the inclusion in consolidated Common Equity Tier 1, Additional Tier 1 and Tier 2 capital of instruments owned by persons other than the undertakings included in the prudential scope of consolidation
1. In cases where the method of consolidation provided for in Article 22(8) and (9) of Directive 2013/34/EU is used pursuant to Article 18(3) or (6), point (b), of Regulation (EU) No 575/2013, an institution may include the Common Equity Tier 1 items and Additional Tier 1 and Tier 2 capital instruments and the related share premium accounts of the undertakings included in the prudential scope of consolidation which are owned by persons other than those undertakings in consolidated Common Equity Tier 1, Additional Tier 1 and Tier 2 capital, provided that those capital items are available to cover the losses of all the undertakings included in the consolidation.
Where the Common Equity Tier 1 items and the Additional Tier 1 and Tier 2 capital instruments and the related share premium accounts referred to in the first subparagraph are not available to cover the losses of all the undertakings included in the prudential scope of consolidation, the institution shall determine the amount of the Common Equity Tier 1 items and of the Additional Tier 1 and Tier 2 capital instruments and the related share premium accounts to be included in consolidated Common Tier 1, Additional Tier 1 and Tier 2 capital in accordance with Articles 81 to 88 of Regulation (EU) No 575/2013.
2. For the purposes of paragraph 1, the Common Equity Tier 1 items and the Additional Tier 1 and Tier 2 capital instruments and the related share premium accounts referred to in paragraph 1, first subparagraph, which are owned by the person or persons or the entity or entities which manage the undertakings on a unified basis pursuant to Article 18(3) of Regulation (EU) No 575/2013 or exercise single management over the undertakings pursuant to Article 18(6), point (b), of that Regulation, shall be deemed to be available to cover the losses of all the undertakings included in the prudential scope of consolidation.
3. In cases where full consolidation is required pursuant to Article 18(5), Article 18(6), point (a), or Article 18(8) of Regulation (EU) No 575/2013, the institution shall determine the amount of Common Equity Tier 1 items and of the Additional Tier 1 and Tier 2 capital instruments and the related share premium accounts of the undertakings included in the prudential scope of consolidation which are owned by persons other than those undertakings, to be included in consolidated Common Equity Tier 1, Additional Tier 1 and Tier 2 capital in accordance with Articles 81 to 88 of Regulation (EU) No 575/2013. For that purpose, the undertakings for which full consolidation is required shall be considered to be subsidiaries.
4. In cases where proportional consolidation is required pursuant to Article 18(4), (5) or (8) of Regulation (EU) No 575/2013, institutions shall determine the amount of Additional Tier 1 and Tier 2 capital instruments issued by the undertakings proportionally included in the prudential scope of consolidation which are owned by persons other than those undertakings as well as the related share premium accounts, to be included in consolidated Additional Tier 1 and Tier 2 capital in accordance with Articles 82, 83, and 85 to 88 of Regulation (EU) No 575/2013.
5. For the purposes of paragraph 4, the following shall apply:
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(a) |
the undertakings for which proportional consolidation is required shall be considered to be subsidiaries; |
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(b) |
references to the full inclusion in the consolidation pursuant to Part One, Title II, Chapter 2, of Regulation (EU) No 575/2013 shall be construed as references to the proportional inclusion in the consolidation pursuant to Article 18(4), (5) or (8) of that Regulation; and |
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(c) |
the amounts referred to in Articles 82, 83 and 85 to 88 of Regulation (EU) No 575/2013 shall be determined taking into account the share of capital held by the institution in those undertakings. |