What is a qualifying holding?
Last updated on 10 February 2026
A qualifying holding is a big or important stake in a bank that gives an investor influence over how the bank is run. This stake:
- is 10% or more of the bank’s capital or voting rights; or
- gives the investor significant influence over how the bank is managed; or
- results in the bank becoming the investor’s subsidiary
The stake may be held directly – in other words the investor owns the stake in their own name – or indirectly – meaning ownership is through one or more other companies.
An investor can be deemed having significant influence over a bank, if they have a representative on the bank’s board of directors or hold veto right over the board’s decisions.
How do qualifying holdings fall under our work?
We supervise banks in the euro area. This includes making sure that only suitable parties have a say in how banks are run. Before a qualifying holding in a bank can be bought or increased beyond certain thresholds, we check that the requirements have been met. This work helps keep banks and the banking system stable, and your money safe.
What are the first steps for investors planning to acquire a qualifying holding?
If a person, legal entity or group plans to invest in a bank by acquiring a qualifying holding, they must first inform the bank’s national supervisor. This applies to both direct and indirect stakes.
The investor must also tell the national supervisor if it already owns a qualifying holding and plans to increase the holding above 20%, 30% or 50%, or if a new acquisition would give it a controlling stake in the bank.
If the investor does not tell the national supervisor about its plans, its voting rights could be suspended, or it might face other penalties. In some countries, voting rights are automatically suspended in these cases.
And what happens next?
Throughout the process, we work closely with national supervisors
- Formal notification: After telling the national supervisor, the investor confirms the intention with a formal notification, which the supervisor passes on to us.
- Assessment: We review the request, usually within 60 working days. If more documents are needed, we can extend the review by up to 30 more working days.
- Outcome: We inform the investor of the outcome of our assessment. Depending on the national laws on market transparency, the bank may also have to publish this information.
Throughout the process, we work closely with national supervisors, who give their own opinion on whether we should oppose the acquisition or not.
What criteria do we use in our assessment?
We consider five key criteria when carrying out our review:
- the reputation of the acquiring investor, including its integrity, trustworthiness and professional competence
- the suitability of the bank’s proposed management, especially those who will hold posts on its board of directors following the acquisition
- the financial soundness of the investor: its ability to finance the acquisition and support the bank sustainably
- compliance with the rules set out in regulations, including in the areas of capital adequacy, governance and risk management
- money laundering or terrorist financing: we check the source of the funds to be used for the acquisition and whether the acquisition could increase financial crime risks
The level of detail applied to these criteria depends on how complex and risky the transaction is.
Find out more about related content
Assessment
We published a Guide that describes our approach in the assessment of qualifying holding procedures.
Guide on qualifying holding proceduresBroader consolidation projects
For acquisitions linked to broader consolidation projects, take a look at the Guide on the supervisory approach to consolidation in the banking sector.
Guide on the supervisory approach to consolidation in the banking sector