EBU Single Rulebook Q&A 25 August 2013 2013_182 Own funds deduction (granted subordinated loan)

According to Directive 2006/48/EC regarding own funds deduction, a subordinated loan granted by institution ‘A’ to institution ‘B’ in which institution ‘A’ has a significant investments has to be deducted from institution ‘A’s own funds (in 50% from Tier1 and in 50% from Tier2). Simultaneously a received subordinated loan is treated as component of Tier2 of institution ‘B’. In Regulation (EU) No.