S.L. 371.11 Art. 2Interpretation.

(1) In these regulations, unless the context otherwise requires -

"the Act" means the Banking Act;

"branch" shall have the same meaning as that assigned to it in point (17) of Article 4(1) of the CRR; "competent authority" means the Malta Financial Services Authority established by the Malta Financial Services Authority Act;

"the CRD" means Directive 2013/36/EU of the European Parliament and of the Council of 26 June 2013 on the access to the activity of credit institutions and the prudential supervision of credit institutions, amending Directive 2002/87/EC and repealing Directives 2006/48/EC and 2006/49/EC, as amended from time to time, and includes any binding legal instruments, guidelines and other measures that have been or may be issued thereunder; "the CRR" means Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and amending Regulation (EU) No 648/2012, as amended from time to time, and includes any binding legal instruments, guidelines and other measures; "European credit institution" means a credit institution as defined in point (1) of Article 4(1) of the CRR, which is authorised by a European regulatory authority;

"European passport right" means the entitlement of a person to establish a branch, or provide services, in a Member State other than that in which it has its head office -

(a) in accordance with the Treaty as applied in the Member State; and

(b) subject to the requirements of the CRD and the CRR, and subject to any rules, regulations or Banking Rules made under the Act implementing such requirements; "European regulatory authority" means a body which is in a country or territory outside Malta that is a Member State and is empowered by law or regulation to supervise credit institutions; "home Member State" shall have the meaning as that assigned to it in point (43) of Article 4(1) of the CRR; "host Member State" shall have the same meaning as that assigned to it in point (44) of Article 4(1) of the CRR; "Maltese credit institution" means a credit institution as defined in point (1) of Article 4(1) of the CRR, which is licensed in terms of the Act, whose head office is in Malta and who is entitled to carry on an activity in a Member State other than Malta in exercise of a European passport right; "systemic risk" means a risk of disruption in the financial system with the potential to have serious negative consequences for the financial system and the real economy; "Treaty" means the Treaty of Rome signed in 1957, establishing the European Economic Community, as subsequently amended; "Tribunal" means the Financial Services Tribunal established under the Malta Financial Services Authority Act.

(2) Words and expressions used in these regulations which are also used in the Act but which are not defined herein, shall have the same meaning as in the Act:

Provided that, in accordance with article 2(1A) of the Act, for the purposes of applying the requirements and supervisory powers laid down in these regulations on a consolidated or sub-consolidated basis in accordance with the Act and any regulations and Banking Rules made or issued thereunder transposing the CRD, with any binding legal instruments issued under the CRD and with the CRR, the term "parent undertaking" shall also include the entities listed in paragraphs (a), (b) and (c) of article 2(1A) of the Act:

Provided further that, for the purposes of applying the requirements and supervisory powers laid down in regulations 3(6), 4(5), 8(1), (2) and (3), 10(9), 11(6), 12(1) and (3), 16(1) and (2)(a) on a consolidated or sub-consolidated basis in accordance with the Act and any regulations and Banking Rules made or issued thereunder transposing the CRD, with any binding legal instruments issued under the CRD and with the CRR, the term "credit institution" shall also include the entities listed in paragraphs (a), (b) and (c) of article 2(1B) of the Act.

(3) Where there are any number of places of business set up in the same Member State by a credit institution having its headquarters in another Member State, they shall be regarded as a single branch. Part I - Exercise of European passport rights by European credit institutions