S.L. 371.16 Art. 9Supervisory powers.

(1) For the purposes of regulations 3, 4(4) and (5), and 7(4), and article 17E of the Act and the application of the CRR, the competent authority shall have at least the following powers:

(a) to require credit institutions to have additional own funds in excess of the requirements set out in the CRR, under the conditions set out in regulation 9A;

(b) to require the reinforcement of the arrangements, processes, mechanisms and strategies implemented in accordance with articles 17B and 17C of the Act;

(c) to require credit institutions to substitute a plan to restore compliance with supervisory requirements in accordance with the Act and any regulations made or Banking Rules issued thereunder, with any binding legal instruments issued under the CRD and with the CRR and set a deadline for its implementation, including improvements to that plan regarding scope and deadline;

(d) to require credit institutions to apply a specific provisioning policy or treatment of assets in terms of own funds requirements;

(e) to restrict or limit the business, operations or network of credit institutions or to request the divestment of activities that pose excessive risks to the soundness of the credit institution;

(f) to require the reduction of the risk inherent in the activities, products and systems of credit institutions, including outsourced activities;

(g) to require credit institutions to limit variable remuneration as a percentage of net revenues where it is inconsistent with the maintenance of a sound capital base;

(h) to require credit institutions to use net profits to strengthen own funds;

(i) to restrict or prohibit distributions or interest payments by a credit institution to shareholders, members or holders of Additional Tier 1 instruments within the meaning of the CRR, where the prohibition does not constitute an event of default of the credit institution;

(j) to impose additional or more frequent reporting requirements, including reporting on own funds, liquidity and leverage;

(k) to impose specific liquidity requirements, including restrictions on maturity mismatches between assets and liabilities; and

(l) to require additional disclosures.

(2) For the purposes of sub-regulation (1)(j), the competent authority shall only impose additional or more frequent reporting requirements on credit institutions where the relevant requirement is appropriate and proportionate with regard to the purpose for which the information is required and the information requested is not duplicative: Provided that, for the purposes of article 17E of the Act, and regulations 3 to 7, any additional information that may be required from credit institutions shall be deemed as duplicative where the same or substantially the same information has already been otherwise reported to the competent authority or may be produced by the competent authority:

Provided further that credit institutions shall not be required to report additional information where the competent authority has previously received it in a different format or level of granularity and that different format or granularity does not prevent the competent authority from producing information of the same quality and reliability as that produced on the basis of the additional information that would be otherwise reported.

(3) Deleted by Legal Notice 493 of 2021.