Judgment of the General Court (Ninth Chamber) of 30 November 2022.Trasta Komercbanka AS and Others v European Central Bank.Economic and monetary policy – Prudential supervision of credit institutions – Specific supervisory tasks assigned to the ECB – Decision to withdraw a credit institution’s authorisation – Death of an applicant – No need to adjudicate in part – Powers of the national authorities of participating Member States and of the ECB under the Single Supervisory Mechanism – Equal treatment – Proportionality – Legitimate expectations – Legal certainty – Misuse of powers – Rights of the defence – Obligation to state reasons.Case T-698/16.

Judgment // 30/11/2022 // 4 min read
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Judgment of the General Court (Ninth Chamber) of 30 November 2022 –Trasta Komercbanka and Others v ECB

(Case T‑698/16) ( 1 )

(Economic and monetary policy – Prudential supervision of credit institutions – Specific supervisory tasks assigned to the ECB – Decision to withdraw a credit institution’s authorisation – Death of an applicant – No need to adjudicate in part – Powers of the national authorities of participating Member States and of the ECB under the Single Supervisory Mechanism – Equal treatment – Proportionality – Legitimate expectations – Legal certainty – Misuse of powers – Rights of the defence – Obligation to state reasons)

  1. Judicial proceedings – Action that has become devoid of purpose – Death of the applicant and proceedings not resumed by his or her successors – No need to adjudicate

(Rules of Procedure of the General Court, Art. 131(2))

(see paragraph 20)

  1. Action for annulment – Natural or legal persons – Measures of direct and individual concern to them – Direct concern – Decision of the European Central Bank (ECB) to withdraw a credit institution’s authorisation – The shareholders of that credit institution not directly concerned – Inadmissibility

(Art. 263, fourth para., TFEU)

(see paragraphs 23, 24)

  1. Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Less significant institutions subject to direct prudential supervision by the national authorities – Establishing the facts constituting infringements of anti-money laundering and counter terrorism financing legislation – Competences of national authorities – Withdrawal of authorisation from a credit institution on the ground of infringement of that legislation – Exclusive competence of the European Central Bank (ECB)

(Council Regulation No 1024/2013, Recitals 28 and 29 and Arts 4(1)(a) and 14(1) and (5); European Central Bank Regulation No 468/2014, Art. 83)

(see paragraphs 51-54, 65, 66, 162)

  1. Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Decision of the European Central Bank (ECB) to withdraw a credit institution’s authorisation – Decision by the ECB based on its own assessment of the relevant circumstances of the case – Judicial review by the EU judicature – Right to effective judicial protection

(Council Regulation No 1024/2013, Arts 4(1)(a) and 14(5))

(see paragraphs 90, 167, 168, 190, 246, 247)

  1. Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Observance of the rights of the defence – Right to be heard in the context of prudential supervisory procedures – Possibility of submitting comments on the draft decision of the European Central Bank (ECB) to withdraw the authorisation of a credit institution

(Charter of Fundamental Rights of the European Union, Arts 41 (2), 47 and 48; Council Regulation No 1024/2013, Arts 4(1), 14(5), and 22(2); European Central Bank Regulation No 468/2014, Arts 31, 32, 81(2) and 82(3))

(see paragraphs 91, 123-130, 135, 138, 139, 143, 144, 148, 169, 170, 266, 272, 273, 276, 277, 280-282, 296, 299, 313, 314)

  1. Economic and monetary policy – Economic policy – Supervision of the EU financial sector – Single supervisory mechanism – Prudential supervision of credit institutions – Decision of the European Central Bank (ECB) to withdraw a credit institution’s authorisation – Decision repealed and replaced by a decision with identical content taken in the context of the review procedure – Retroactive effect from the time at which the reviewed decision took effect

(Council Regulation No 1024/2013, Art. 24(7) and (8); European Central Bank Decision 2014/360, Art. 9(1))

(see paragraphs 104-113)

  1. Acts of the institutions – Statement of reasons – Obligation – Scope – Assessment of the duty to state reasons by reference to the circumstances of the case

(Art. 296 TFEU)

(see paragraphs 155, 157, 325, 326, 330, 332)

  1. EU law – Principles – Proportionality – Scope – Discretion of the EU legislature – Judicial review – Limits

(Art. 5(4) TEU)

(see paragraphs 221, 222, 231)

  1. EU law – Principles – Equal treatment – Need to comply with the principle of legality – Impossible to rely on an unlawful act committed in favour of another

(see paragraphs 235, 236, 238, 248)

  1. EU law – Principles – Protection of legitimate expectations – Conditions – Specific assurances given by the authorities – Legal certainty – Requirement that acts producing legal effects be clear and precise

(see paragraphs 252, 253, 258-260)

Operative part

The Court:

  1. Declares that there is no longer any need to adjudicate on the action in so far as it was brought by Mr Igors Buimisters;

  2. Dismisses the action;

  3. Orders Trasta Komercbanka AS and the other applicants whose names are included in the annex, with the exception of Mr Buimisters, to pay the costs;

  4. Orders Mr Buimisters to bear his own costs;

  5. Orders the European Commission and the Republic of Latvia to bear their own costs.

( 1 ) OJ C 441, 28.11.2016.

Economic and monetary policy