Article 4 - Criteria for the adoption of delegated decisions on mergers

the impact on the own funds of the significant supervised entity resulting from the merger, on both a consolidated and an individual level, is limited, which means that all of the following apply:(i)for at least three years from the effective date of the merger, the own funds exceed the sum of: (1) the requirements laid down in Article 92(1) of Regulation (EU) No 575/2013; (2) the own funds required to be held in accordance with Article 16(2), point (a) of Regulation (EU) No 1024/2013; (3) the combined buffer requirement as defined in Article 128, point (6) of Directive 2013/36/EU; and (4) where applicable, the Pillar 2 capital guidance as set out in the last available SREP decision of the acquiring supervised entity;(ii)the impact of any reduction on the Common Equity Tier 1 capital ratio, the Tier 1 capital ratio and the total capital ratio is below 100 basis points; or, for at least three years from the effective date of the merger, the aggregate of the requirements, and where applicable, the guidance, referred to in point (i) is exceeded by at least seven percentage points;

the impact on the liquidity situation of the significant supervised entity resulting from the merger is limited, which means that for at least three years from the effective date of the merger all of the following apply:(i)the liquidity coverage ratio (LCR) and the net stable funding ratio (NSFR) remain above 110 % and are above any liquidity requirements set out in the last available SREP decision, if these are higher than the requirements of Regulation (EU) No 575/2013;(ii)at consolidated level, the LCR and the NSFR are not reduced by more than 50 %;

the governance structure of the significant supervised entity resulting from the merger does not raise supervisory concerns.