PART 6Assessment of resolvability and removal of impediments to resolvability

CHAPTER 2Assessment of resolvability of groups

Assessment of group resolvability where the PRA or FCA is the consolidating supervisor62

1

This article applies in relation to a relevant group in respect of which the PRA or FCA is the consolidating supervisor.

2

For the purpose of drawing up or reviewing a group resolution plan the Bank must make an assessment of group resolvability F4in respect of the relevant group and, where there is more than one resolution group in the relevant group, in respect of each resolution group.

3

For the purpose of making the assessment of group resolvability the Bank must—

a

consider all relevant matters, including the matters set out in F1Schedule 2B and in any technical standards under paragraph (2A);

b

have regard to the circumstances under which F8resolution entities may meet the conditions for resolution, 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 any of the group entities will be in receipt of—

i

extraordinary public financial support;

ii

emergency liquidity assistance; 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 regulator;

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F23A

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 group resolvability.

4

Paragraph (3) 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 group resolvability.

5

The relevant group F3or a resolution group is deemed to be resolvable if the Bank concludes that it would be feasible and credible to F6apply the resolution tools or exercise resolution powers in respect of resolution entities, or take insolvency proceedings in respect of group entities while avoiding to the maximum extent possible any significant adverse effect on the financial system of F9the United Kingdom or the continuity of the critical functions of group entities.

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F78

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