News and developments
NEW REGULATION FOR THE AUTHORIZATION OF CREDIT INSTITUTIONS – PRELIMINARY REQUIREMENTS FOR AUTHORIZATION
Regulation 12/2020 brings a number of updates as regards the authorization procedure that needs to be followed by credit institutions, including the general requirements that must be met in order to obtain authorization.
We have summarized below some of the most important aspects in relation to the preliminary evaluation to be performed by the NBR.
- General requirements
- Shareholders’ evaluation
- The reputation of significant shareholders
- integrity of the significant shareholders;
- the professional competency of the significant shareholders.
- any deeds registered in the criminal records of such significant shareholders;
- any aggravating or mitigating circumstances in which an offense or contravention committed by the significant shareholders occurred, if the case;
- the relevance of any criminal or administrative measures imposed on significant shareholders on the position they will hold in the credit institution.
- any indication that the shareholder has not been transparent, open and cooperative with supervisory authorities similar to the NBR;
- reasons for which the shareholder has been dismissed from work or any revocation, on grounds of disregard for trust, from a fiduciary or similar relationship.
- the acquisition and management of participations of at least 10% in commercial entities;
- exercising control over credit institutions or financial institutions and/or in managing and/or leading the activities thereof.
- Financial soundness of significant shareholders
- the significant shareholders’ capacity to finance their participation and to maintain a solid financial structure of the credit institution;
- the significant shareholders’ capacity to ensure the prudent and health management of the credit institution for the foreseeable future;
- whether the financing mechanisms used by the significant shareholders to finance their participations in the credit institution’s capital or whether the existing financial relationships between the significant shareholders and the credit institution may generate conflicts of interest that could destabilize the financial structure of the credit institution.
- Compliance of the credit institution with prudential requirements
- the evaluation of the adequacy of the quality of the significant shareholders should consider if the bank will be able to comply with the prudential requirements, as provided in the applicable regulations;
- that the group that the credit institution belongs to has a structure that does not prevent the exercise of effective supervision by the competent authorities and the efficient exchange of information with the competent authorities.
- Suspicions regarding money laundering or the terrorism financing
- the NBR knows or suspects or has reasonable reasons to suspect that the shareholder is or has been involved in operations of money laundering or in such attempts;
- the NBR knows or suspects or suspects or has reasonable reasons to suspect that the shareholder is or has been involved in acts of terrorism or in the terrorism financing, specifically if it is subject to financial sanctions; or
- the proposed acquisition increases the risk of money laundering or terrorism financing.
- Conclusions