EBA Clarifies Danish Compromise Exclusion for Asset Managers
The European Banking Authority clarified that EU banking rules prevent favorable capital treatment for asset managers acquired through insurance subsidiaries. This impacts Banco BPM's acquisition of Anima Holding, increasing the bank's regulatory burden.
Insights:
The European Banking Authority (EBA) has issued a crucial clarification regarding the application of the Danish Compromise, a provision in the EU's Capital Requirements Regulation (CRR). Announced on January 10, 2026, the EBA's statement specifies that banks cannot apply favorable capital treatment to asset managers acquired through insurance subsidiaries. This clarification directly impacts Banco BPM , which acquired Anima Holding in 2025 under the expectation of benefiting from such capital treatment.
The Danish Compromise, initially introduced as a temporary measure following the 2008-2009 global financial crisis, allows banks owning insurers to hold capital against insurance subsidiaries on a risk-weighted basis rather than deducting holdings in full. Although the provision has since become a permanent feature of EU regulation, its scope is now more narrowly defined than some market participants anticipated.
