meta_id 3185290

On May 21, 2026, Iceland's Central Bank (Seðlabanki Íslands) issued a circular distributing guidelines from the European Banking Authority (EBA) on the definition of ancillary activities under Regulation (EU) No. 575/2013 (Capital Requirements Regulation or CRR), as amended by Regulation (EU) 2024/1623 (CRR III). The guidelines, designated EBA/GL/2026/01, became effective on May 4, 2026. The guidelines establish clear, uniform criteria for determining which activities qualify as ancillary activities under Article 4(18) of the CRR. An ancillary activity is defined as a company whose main business—whether serving entities within a financial group or external customers—consists of direct continuation of banking activities, operational leasing, property ownership or management, data processing services, or other activities supplementary to banking services or comparable activities as determined by the EBA. The guidelines clarify how competent authorities and financial institutions should assess whether activities constitute direct continuation of banking services, are linked or supplementary to banking services, or are comparable to such services. The guidelines also establish a process whereby competent authorities may notify the EBA of activities not directly falling within these categories, providing reasoned justification for determining comparability. Iceland's Central Bank directs financial institutions to familiarize themselves with these guidelines and apply them as appropriate in their operations. The Central Bank will use the guidelines in supervisory activities and when assessing compliance with relevant provisions. The circular will be published on the Central Bank's website alongside a link to the English version of the EBA guidelines.