The Bank Recovery and Resolution (No. 2) Order 2014

Assessment of resolvability U.K.

60.—(1) For the purpose of drawing up or reviewing the resolution plan the Bank must make an assessment of resolvability.

(2) For the purpose of making the assessment of resolvability the Bank must—

(a) consider all relevant matters, including the matters set out in [F1 Schedule 2B and in any technical standards under paragraph (2A);]

(b) have regard to the circumstances under which the institution may fail or be likely to fail, in particular—

(i) supposing that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and

(ii) supposing that there is no such a situation or occurrence;

(c) not assume that the institution will be in receipt of—

(i) extraordinary public financial support;

(ii) emergency liquidity assistance M1 ; or

(iii) any other liquidity assistance provided by the Bank under non-standard collateralisation, tenor and interest rate terms; and

(d) consult—

(i) the appropriate regulatorF2 ...

F3 (ii) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

[F4 (2A) The Bank may make technical standards providing—

(a) further examples of relevant matters to be considered; and

(b) criteria to be examined,

for the purposes of making the assessment of resolvability.]

(3) Paragraph (2) has effect subject to the imposition of any simplified obligations (within the meaning given by article 9(3)(b)) with respect to the assessment of resolvability.

(4) The institution is deemed to be resolvable if the Bank concludes that it would be feasible and credible to [F5 apply the resolution tools, exercise resolution powers or take] insolvency proceedings in respect of the institution while avoiding to the maximum extent possible any significant adverse effect on the financial system of [F6 the United Kingdom] or the continuity of the institution's critical functions.

F7 (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Textual Amendments

F1 Words in art. 60(2)(a) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(2)(a); 2020 c. 1, Sch. 5 para. 1(1)

F2 Word in art. 60(2)(d)(i) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(2)(b)(i); 2020 c. 1, Sch. 5 para. 1(1)

F3 Art. 60(2)(d)(ii) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(2)(b)(ii); 2020 c. 1, Sch. 5 para. 1(1)

F4 Art. 60(2A) inserted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(3); 2020 c. 1, Sch. 5 para. 1(1)

F5 Words in art. 60(4) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(4)(a); 2020 c. 1, Sch. 5 para. 1(1)

F6 Words in art. 60(4) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(4)(b); 2020 c. 1, Sch. 5 para. 1(1)

F7 Art. 60(5) omitted (31.12.2020) by virtue of The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 35(5); 2020 c. 1, Sch. 5 para. 1(1)

Marginal Citations

M1 For the meaning of “extraordinary public financial support” and “emergency liquidity assistance” see the recovery and resolution directive, Article 2.1, points (28 and (29).