Article 1 - Definitions

‘merger’ means an operation as defined in Article 27h, third subparagraph, point (1) of Directive 2013/36/EU;

‘division’ means an operation as defined in Article 27h, third subparagraph, point (2) of Directive 2013/36/EU;

‘acquisition of a material holding’ means an acquisition of a holding which is deemed material pursuant to Article 27a(2) of Directive 2013/36/EU;

‘significant supervised entity’ means a significant supervised entity as defined in point (16) of Article 2 of Regulation (EU) No 468/2014 of the European Central Bank (ECB/2014/17) ⁸;

‘delegated decision’ has the same meaning as in Article 3, point (4) of Decision (EU) 2017/933 (ECB/2016/40);

‘non-objection procedure’ means the procedure set out in Article 26(8) of Regulation (EU) No 1024/2013, and further specified in Article 13g of Decision ECB/2004/2;

‘head of work unit’ means a person of the ECB to whom the power to adopt decisions on mergers, divisions and acquisitions of material holdings is delegated;

‘sensitivity’ means a characteristic or factor that may have a negative impact on the ECB’s reputation and/or on the effective and consistent functioning of the Single Supervisory Mechanism, including but not limited to any of the following: (a) the relevant supervised entity has previously been, or is currently, subject to severe supervisory measures such as early intervention measures; (b) the draft decision once adopted will set a new precedent that could bind the ECB in the future; (c) the draft decision once adopted may attract negative media or public attention; or (d) a national competent authority that has entered into close cooperation with the ECB communicates its disagreement with the proposed draft decision to the ECB;

‘decision taken in exercise of supervisory powers granted pursuant to Union law’ means: (a) a supervisory decision; (b) the approval of a positive assessment where a supervisory decision is not required under Union law; (c) an instruction addressed, pursuant to Article 7 of Regulation (EU) No 1024/2013, to the national competent authorities with which the ECB has established close cooperation.

‘negative decision’ means a decision that does not or does not fully grant the approval as requested by the significant supervised entity. A decision with ancillary provisions such as conditions or obligations shall be considered as a negative decision unless such ancillary provisions (a) ensure that the supervised entity fulfils the relevant legal requirements set out in the applicable provisions of Union law, as transposed into national law, and have been agreed in writing, or (b) merely restate one or more of the existing requirements that the institution has to comply with pursuant to provisions of Union law, as transposed into national law, or require information on the fulfilment of one or more of such requirements;

‘SREP decision’ means the decision adopted by the ECB on the basis of Article 16 of Regulation (EU) No 1024/2013 following the annual supervisory review and evaluation process within the meaning of Article 97 of Directive 2013/36/EU and which establishes prudential requirements;

‘Common Equity Tier 1 capital ratio’, ‘Tier 1 capital ratio’ and ‘total capital ratio’ mean Common Equity Tier 1 capital ratio, Tier 1 capital ratio and total capital ratio, respectively, as referred to in Article 92(2) of Regulation (EU) No 575/2013 of the European Parliament and of the Council ⁹;

‘equivalent supervisory and regulatory standards’ means supervisory and regulatory requirements or arrangements applied by a third country or territory that are recognised by the European Commission as equivalent to those applied in the Union in accordance with Articles 107(4) and 114(7), second paragraph, of Regulation (EU) No 575/2013.