13.3.1 Why are these characteristics relevant?

As a general rule, if the competitive impact of the State aid is low, then there is less need for compensatory measures. Point 32 of the Restructuring Communication stipulates that the compensatory measures will be tailored to market characteristics (such as: concentration levels, capacity constraints, and the level of profitability, barriers to entry and to expansion). When analysing the likely effects of State aid, the Commission takes into account the size and importance of the beneficiary bank.

The market position of the beneficiary bank can be measured by its market presence (in terms of market share). The fact that the beneficiary bank has a limited market presence can be considered as a relevant characteristic, because it is used as an indication that the distortions of competition are limited. Consequently, the need for compensatory measures is reduced. By contrast, the fact that the beneficiary bank is one of the market leaders underlines the need for compensatory measures.