Article 89 — 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;
- an undertaking, that is not a financial sector entity, carrying on activities which the competent authority considers to be any of the following:
- 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.
- 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.
- 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:
- for the purpose of calculating the capital requirement in accordance with Part Three, institutions shall apply a risk weight of 1250 % to the greater of the following:
- 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).
- 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;
- similar activities.