This final report presents guidelines on ancillary services undertakings within the framework of banking regulation. It aims to clarify definitions and establish criteria for identifying activities considered as a direct extension or ancillary to banking. These guidelines aim to improve the detection and management of risks within financial groups.
This document is the final report of the guidelines on "ancillary services undertakings" (ASU), published by the European Banking Authority (EBA) in January 2026. It specifies the identification criteria of activities referred to in Article 4(1)(18) of Regulation (EU) No 575/2013, amended by Regulation (EU) 2024/1623. The scope covers activities considered as a direct extension of the bank, ancillary activities such as operational leasing, property management, data processing services, as well as any similar activity determined by the EBA. The guide is addressed to competent authorities and financial institutions within the European Union, to ensure a harmonized application of prudential rules from 4 May 2026 (p. 1-18).
The subject concerns the clarification and definition of activities qualifying as "ancillary services undertakings" (ASU) within the European prudential framework, following the amendment of Regulation (EU) No 575/2013 by Regulation (EU) 2024/1623. This clarification is crucial to ensure consistent application of consolidation rules and better risk detection at the consolidated level of banking groups. The main findings are that previous definitions were subject to divergent interpretations among Member States, which could harm convergence and effective supervision. The report establishes clear criteria to identify: (i) activities constituting a direct extension of the bank (e.g., loan brokerage, debt management, credit assessment), (ii) ancillary banking activities (operational leasing, property management, data processing) that support, complement, or depend on the bank, and (iii) similar activities identified case by case. The qualification of an activity as ASU depends on cumulative thresholds (50% of assets, revenues, or personnel). Recommendations include applying these criteria to all entities, whether or not part of a banking group, for direct extensions, while for ancillary activities, qualification is limited to entities within the banking group. A process is provided to notify and assess emerging similar activities. These guidelines aim to strengthen convergence, transparency, and consistency in prudential supervision across the EU, with an effective date set for 4 May 2026 (p. 4-5, 6-14, 16-24, 25-41).
ASUs play a key role in the overall functioning of banking groups by performing activities closely related to banking functions but which are not main financial activities. In 2017, the EBA identified divergences in the interpretation of ASU and financial institution definitions within the EU, affecting the consistency of prudential consolidation rules. The rise of groups combining financial and non-financial activities, notably in digital finance (BigTech, FinTech), highlighted the need for better risk consideration. Regulation (EU) 2024/1623 therefore amended definitions to clarify the ASU scope and extend coverage to ancillary digital activities. These guidelines were developed to provide clear and harmonized criteria to identify activities falling under ASUs, to ensure uniform application of prudential rules, avoid regulatory arbitrage, and facilitate consolidated supervision of banking groups. They specify notably the notions of direct extension, ancillary activity, and main activity, with a 50% threshold on financial or human indicators to qualify an ASU. The document takes into account feedback from a three-month public consultation and adjusts certain criteria to ensure proportionality and clarity (p. 6-14).
- Definition and scope of ASU: ASUs are entities whose main activity is either a direct extension of the bank or an ancillary activity (operational leasing, property management, data processing, or other similar activity). Qualification relies on precise criteria and a 50% threshold on assets, revenues, or personnel (p. 6-14, 24).
- Direct extension of the bank: Core activities at the heart of banking services (loan brokerage, loan management, credit assessment, recovery, management of seized assets, loan intermediation via innovative platforms). These activities must be primarily provided to financial institutions or banks and are qualified regardless of group membership (p. 15-20).
- Ancillary banking activities: Activities that support, complement, or significantly depend on banking services. Support includes process improvement, client management, compliance, marketing, administration. Complementarity manifests through cross-selling of products or services. Dependence can be operational or financial (e.g., bank financing). These criteria apply only to entities within the banking group (p. 20-25).
- Operational leasing: Leasing contracts that do not substantially transfer risks to the lessee. Considered ancillary if provided to financial institutions, accompanied by recurrent sales of banking products, or significantly dependent on banking services or financing (p. 22).
- Property management: Considered ancillary if it supports banking operations (e.g., branches, headquarters), complements commercial strategy (e.g., cross-selling real estate-related products), or strongly depends on banking financing or services (p. 22-23).
- Data processing services: Ancillary if they support banking operations, complement banking products (e.g., analytics), or depend on banking data or services (p. 23-24).
- Similar activities: Formalized process to notify the EBA of any unlisted but similar activity, with case-by-case evaluation to maintain flexibility and adaptation to technological and commercial developments (p. 26-27).
- Main activity: Cumulative thresholds of 50% on assets, revenues, or personnel to qualify an ASU. In absence of thresholds met, a case-by-case assessment by the competent authority is possible (p. 24).
- Application and compliance: Guidelines apply from 4 May 2026. Authorities must notify their compliance to the EBA within two months following the publication of official translations (p. 16-18).
- Public consultation: 12 responses received, with requests for adjustments on the definition of "banking," scope of criteria, and treatment of collective entities. The EBA incorporated several amendments to clarify and simplify criteria, notably by removing some too broad or redundant criteria (p. 32-41).
- Findings: Previous definitions of ASU and financial institution showed divergent interpretations among Member States, affecting the coherence of consolidated supervision. Regulation (EU) 2024/1623 clarified these definitions, requiring the EBA to specify identification criteria for ASU activities. The guidelines specify these criteria, with a clear distinction between direct extension and ancillary activities, and introduce a 50% threshold to qualify the main activity. The process for identifying similar activities ensures continuous adaptation to sector developments. (p. 6-14, 25-31)
- Assumptions: The criteria-based approach rather than an exhaustive list is more flexible and suited to diverse business models. Limiting ancillary activities to entities within the banking group avoids undesirable effects in other regulatory frameworks. Qualification of direct extension activities does not depend on group membership to guarantee prudential consistency.
- Interpretations: The EBA considers that innovative lending platform activities must be included as a direct extension of the bank, even if not explicitly listed in existing texts. The criteria of support, complementarity, and dependence are essential to qualify ancillary activities. The exclusion of collective investment undertakings (CIUs) from certain categories is confirmed unless they meet specific criteria.
- Uncertainties: Determining the main activity can be complex in hybrid business models, requiring case-by-case assessment. The notion of "significant" in the criteria linking to the bank requires careful evaluation to avoid excessive or insufficient classifications. The rapid evolution of digital financial activities may generate uncovered cases, justifying the mechanism for identifying similar activities.
The EBA concludes that implementing clear and harmonized criteria for identifying ASUs is essential to ensure effective and coherent consolidated supervision within the European Union. It recommends applying the defined criteria to qualify activities as direct extensions or ancillary to the bank, with particular attention to the 50% threshold for the main activity. The notification and evaluation process for similar activities must be actively used to integrate sector developments. Competent authorities must incorporate these guidelines into their practices before the application date of 4 May 2026 and notify their compliance to the EBA within the prescribed deadlines. These measures aim to strengthen regulatory convergence, reduce fragmentation risks, and ensure that risks related to ancillary activities are considered within the consolidated prudential framework.
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