13.5.1 Why is this a relevant characteristic?

(Almost) all restructuring plans contain structural remedies, such as divestments. Restructuring plans are aimed at three pillars, and this is reflected by the fact that divestments can have three different purposes. Sometimes, banks are required to divest certain loss-making activities or activities that are no longer part of their core business. These divestments are aimed at restoring viability (i.e. the first pillar). In section 12.3, it was explained that divestments of profitable non-core subsidiaries constitute an own contribution of the bank (i.e. the second pillar). Divestments can also be aimed at increasing competition on the market (i.e. the third pillar). Those divestments are discussed in the present section.

Some divestments are specifically aimed at increasing competition on the market by introducing a challenger or by reinforcing a small existing player. To give an example: the restructuring plan of ING envisaged a large number of divestments.1 One of these divestments consisted of the carve-out of WUH/ Interadvies.2 The decision on ING specified that this carved-out new company should be a viable standalone player on the Dutch retail banking market.3 In other words: this divestment was aimed at creating a new competitor on the Dutch banking market.