EBA launches consultation on technical standards for identifying shadow banking entities
26 July 2021 France
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The European Banking Authority (EBA) has launched a public consultation on draft regulatory technical standards (RTS) detailing the criteria for identifying shadow banking entities.
Entities that offer banking services and perform banking activities as defined in the draft RTS, but are not regulated and are not being supervised in accordance with any of the acts that form the regulated framework, are identified by the EBA as shadow banking entities.
Special provisions are included in the draft RTS which take into account the specific character of funds regulated under the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive or the Alternative Investment Fund Managers (AIFM) Directive.
Money market funds (MMFs) are identified as shadow banking entities, in recognition of the severe liquidity issues that affected MMFs during the Covid 19 crisis and ongoing discussions at EU and international level to strengthen their regulation.
Additionally, the draft considers the situations of entities established in third countries and provides treatment that differentiates between banks and other entities.
The submission deadline for comments on the consultation ends on 26 October 2021.
Entities that offer banking services and perform banking activities as defined in the draft RTS, but are not regulated and are not being supervised in accordance with any of the acts that form the regulated framework, are identified by the EBA as shadow banking entities.
Special provisions are included in the draft RTS which take into account the specific character of funds regulated under the Undertakings for the Collective Investment in Transferable Securities (UCITS) Directive or the Alternative Investment Fund Managers (AIFM) Directive.
Money market funds (MMFs) are identified as shadow banking entities, in recognition of the severe liquidity issues that affected MMFs during the Covid 19 crisis and ongoing discussions at EU and international level to strengthen their regulation.
Additionally, the draft considers the situations of entities established in third countries and provides treatment that differentiates between banks and other entities.
The submission deadline for comments on the consultation ends on 26 October 2021.
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