Financial Conglomerates
Financial Conglomerates
Financial conglomerates are financial groups, which offer their services and products in various financial sectors (the banking, investment services and insurance sectors). Special supervisory regulations taken into considerations the cross-sector significance of financial conglomerates to be able to effectively counteract the increasing interdependencies from both sectors that can lead to cross-sector effects in the event of an entity falling into financial difficulties.
Supplementary supervision has been introduced for credit institutions, insurance undertakings and investment firms belonging to a financial conglomerate, that conduct a considerable amount of cross-sectoral business that exceeds certain thresholds.
European Banking Authority (EBA) Landing Page about Supervision of Financial Conglomerates
