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

The context for resolution action

1.—(1) In drawing up a group resolution plan the Bank must have regard to the different circumstances under which group entities may meet the conditions for resolution.

(2) The circumstances to which the Bank must have regard include the following—

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

(b) that there is no such a situation or occurrence.

(3) In drawing up a group resolution plan the Bank must not assume that any group entity will be in receipt of—

(a) extraordinary public financial support other than financing arrangements made in accordance with Article 100 of the recovery and resolution directive;

(b) emergency liquidity assistance(1); or

(c) any other liquidity assistance provided by the Bank or any other central bank under non-standard collateralisation, tenor and interest rate terms.

(1)

For the meaning of “emergency liquidity assistance” see the recovery and resolution directive, Article 2.1, point (29).