To further account for the specificities of IPSs recognised as DGSs and to strengthen their effectiveness, Directive 2014/49/EU should provide for the possibility for a DGS to provide a loan or otherwise temporarily transfer the funds regulated by that Directive to the IPS account, which is separate from the DGS account for accounting purposes, for the purpose of granting financial support to a member and in particular to ensure its liquidity and solvency to avoid bankruptcy where necessary, in fulfilment of the objectives of Article 113(7) of Regulation (EU) No 575/2013 of the European Parliament and of the Council. That should be possible in cases where the provided means are needed to supplement the other means dedicated to ensuring the liquidity and solvency of an affiliated institution in order to avoid its bankruptcy and should be subject to the condition that repayment to the DGS within seven working days, if needed, is a credible prospect.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
