Article 1 — Amendments to Directive 2014/59/EU

Directive 2014/59/EU is amended as follows: (1) Article 2(1) is amended as follows: (a) point (5) is replaced by the following: (5) subsidiary means a subsidiary as defined in Article 4(1), point (16), of Regulation (EU) No 575/2013, and for the purpose of applying Articles 7, 12, 17, 18, 45 to 45m, 59 to 62, 91 and 92 of this Directive to resolution groups referred to in point (83b)(b) of this paragraph, includes, where and as appropriate, credit institutions or financial institutions that are permanently affiliated to a central body, the central body itself, and their respective subsidiaries, taking into account the way in which such resolution groups comply with Article 45e(3) of this Directive; ; (b) the following point is inserted: (28a) alternative private sector measure means any support that does not qualify as extraordinary public financial support; ; (c) point (35) is replaced by the following: (35) critical functions means activities, services or operations the discontinuance of which is likely in one or more Member States, at national or regional level, to lead to the disruption of services that are essential to the real economy or to disrupt financial stability, due to the size, market share, external and internal interconnectedness, complexity or cross-border activities of an institution or group, with particular regard to the substitutability of those activities, services or operations; ; (d) point (71) is replaced by the following: (71) bail-inable liabilities means the liabilities, including liabilities of uncertain timing or amount, and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments of an institution or entity as referred to in Article 1(1), point (b), (c) or (d), and that are not excluded from the scope of the bail-in tool pursuant to Article 44(2); ; (e) the following point is inserted: (71aa) liabilities of uncertain timing or amount means liabilities based on present obligations arising from past events which will result in a loss and the timing or amount of which is uncertain; ; (f) point (71b) is replaced by the following: (71b) subordinated eligible instruments means instruments that meet all of the conditions referred to in Article 72a of Regulation (EU) No 575/2013 other than Article 72b(3), (4) and (5) of that Regulation, and, where applicable, in Article 45b(1a) of this Directive; ; (g) the following point is inserted: (72a) designated authority means a designated authority as defined in Article 2(1), point (18), of Directive 2014/49/EU; ; (h) in point (83b), point (b) is replaced by the following: (b) credit institutions or financial institutions permanently affiliated to a central body, and the central body itself when at least one of those credit institutions or financial institutions or the central body is a resolution entity, and their respective subsidiaries; ; (i) the following points are inserted: (83d) non-EU G-SII means a non-EU G-SII as defined in Article 4(1), point (134), of Regulation (EU) No 575/2013; (83e) G-SII entity means a G-SII entity as defined in Article 4(1), point (136), of Regulation (EU) No 575/2013; ; (j) the following point is inserted: (93a) deposit means, for the purposes of Articles 108 and 109 of this Directive, deposit as defined in Article 2(1), point (3), of Directive 2014/49/EU; ; (2) in Article 5, paragraphs 2, 3 and 4 are replaced by the following: 2. Competent authorities shall ensure that the institutions update their recovery plans at least annually or after a change to the legal or organisational structure of the institution, its business or its financial situation, which could have a material effect on, or necessitate a material change to, the recovery plan. Competent authorities may require institutions to update their recovery plans more frequently. In the absence of the changes referred to in the first subparagraph within 12 months following the latest annual update of the recovery plan, competent authorities may exceptionally waive, until the subsequent 12-month period, the obligation to update the recovery plan. Such a waiver may be granted for a maximum period of 12 months. 3. Recovery plans shall not assume any access to or receipt of any of the following: (a) extraordinary public financial support; (b) central bank emergency liquidity assistance; (c) central bank liquidity assistance provided under non-standard collateralisation, tenor or interest rate terms. 4. Recovery plans shall include, where applicable, an analysis of how and when an institution may apply, under the conditions addressed by the recovery plan, for the use of central bank facilities which are not excluded from the scope of that plan pursuant to paragraph 3 and identify those assets which would be expected to qualify as collateral. ; (3) in Article 6(5), the first subparagraph is replaced by the following: Where the competent authority assesses that there are material deficiencies in the recovery plan, or material impediments to its implementation, it shall notify the institution or the parent undertaking of the group of its assessment and shall require the institution to submit, within three months, extendable with the authority’s approval by one month, a revised plan demonstrating how those deficiencies or impediments are to be addressed. ; (4) in Article 8(2), the third subparagraph is replaced by the following: EBA may, at the request of a competent authority, assist the competent authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1093/2010. ; (5) Article 10 is amended as follows: (a) in paragraph 1, the following subparagraph is added: The resolution authority shall not adopt a resolution plan where proceedings have been initiated to wind up an institution in accordance with the applicable national law pursuant to Article 32b, or where Article 37(6) applies. ; (b) in paragraph 7, point (j) is replaced by the following: (j) a detailed description of the different resolution strategies that could be applied according to the different possible scenarios and the applicable timescales, and how those strategies would achieve the resolution objectives; ; (6) in Article 11, paragraph 3 is replaced by the following: 3. EBA shall develop draft implementing technical standards specifying: (a) the methods and arrangements for reporting the information referred to in paragraph 1; (b) the frequency and submission deadlines of the reporting referred to in point (a). EBA shall submit those draft implementing technical standards to the Commission by 11 May 2027. Power is conferred on the Commission to adopt the implementing technical standards referred to in the first subparagraph of this paragraph in accordance with Article 15 of Regulation (EU) No 1093/2010. 4. EBA shall develop IT solutions, including reporting templates, data standards, formats and instructions, for reporting the information referred to in paragraph 1. ; (7) Article 12 is amended as follows: (a) paragraph 1 is amended as follows: (i) the second subparagraph is replaced by the following: In accordance with the measures referred to in the first subparagraph, the resolution plan shall identify for each group the resolution entities and the resolution groups and, where appropriate, the liquidation entities. ; (ii) the following subparagraphs are added: When identifying the measures to be taken in respect of the subsidiaries referred to in the first subparagraph, point (b), that are not resolution entities, resolution authorities may follow a commensurate approach if such approach does not negatively affect the resolvability of the group, taking into account the size of the subsidiary, its risk profile, its role in the provision of critical functions and of core business lines, its importance for the operational continuity of the group after resolution and the group resolution strategy. Resolution authorities shall duly consider the importance of the subsidiary in the Member State where it is established, including its potential systemic importance, and its potential impact on the available financial means of the deposit guarantee scheme in the case of winding up under normal insolvency proceedings. Where proceedings have been initiated to wind up an entity in accordance with applicable national law pursuant to Article 32b, or where Article 37(6) applies, resolution authorities shall no longer include that entity in the group resolution plan. ; (b) paragraph 2 is replaced by the following: 2. The group resolution plan shall be drawn up on the basis of the information provided pursuant to Article 11 and shall include the elements referred to in Article 10(4) and (7) insofar as they are relevant from the perspective of a group resolution plan. ; (c) the following paragraph is added: 7. EBA shall monitor the methodologies and practices of resolution authorities for deciding, in the drawing up of resolution plans and group resolution plans, whether to earmark institutions or entities for resolution or for winding up under normal insolvency proceedings and for deciding on the actions to be taken in the scenarios referred to in Article 10(3) and in the circumstances described in Article 32(5). EBA shall submit a report to the Commission on the existing methodologies and practices of resolution authorities and on any divergences across Member States by 11 May 2031. The report referred to in the second subparagraph shall cover at least the following: (a) with respect to institutions that are not part of a group and to entities referred to in paragraph 1, first subparagraph, the internal approaches and methodologies for selecting the measures to be taken, in particular the criteria for the resolution plan or the group resolution plan to provide for resolution action, for the exercise of write-down and conversion powers or for the winding up under normal insolvency proceedings; (b) with respect to resolution entities, the internal approaches and methodologies for choosing the preferred and variant resolution strategies and the resolution actions to be taken; (c) the commensurate approaches followed by resolution authorities pursuant to paragraph 1, third subparagraph. ; (8) Article 13 is amended as follows: (a) in paragraph 1, the first and second subparagraphs are replaced by the following: Institutions and entities referred to in Article 1(1), points (b), (c) and (d), shall submit to their resolution authority the information that may be required in accordance with Article 11. The resolution authorities that require information under Article 11 for entities in their remit shall transmit the information they receive to the group-level resolution authority. The group-level resolution authority shall, provided that the confidentiality requirements laid down in this Directive are complied with, transmit the information provided in accordance with this paragraph to: (a) EBA; (b) the resolution authorities of subsidiaries; (c) the resolution authorities of the jurisdictions in which significant branches are located insofar as is relevant to the significant branch; (d) the relevant competent authorities referred to in Articles 115 and 116 of Directive 2013/36/EU; and (e) the resolution authorities of the Member States where the entities referred to in Article 1(1), points (c) and (d), are established. ; (b) in paragraph 4, the fourth subparagraph is replaced by the following: EBA may, at the request of a resolution authority, assist the resolution authorities in reaching a joint decision in accordance with Article 31(2), point (c), of Regulation (EU) No 1093/2010. ; (9) in Article 15, the following paragraph is added: 5. EBA shall monitor the implementation of the resolvability assessments of institutions and groups by resolution authorities. EBA shall submit a report to the Commission on the existing practices on resolvability assessments and possible divergences across Member States by 11 May 2028. The report referred to in the first subparagraph shall cover the following: (a) an assessment of the methodologies developed by resolution authorities to carry out resolvability assessments, including the identification of areas of possible divergence across Member States; (b) an assessment of the testing capabilities required by resolution authorities to ensure an effective implementation of the resolution strategy; (c) the level of transparency towards relevant stakeholders of the methodologies developed by resolution authorities to carry out resolvability assessments and of the outcome of those assessments. ; (10) in Article 16a, the following paragraph is added: 7. Where a resolution entity or an entity that is not itself a resolution entity is not subject to the combined buffer requirement on the same basis as the basis on which it is required to comply with the requirements referred to in Articles 45c and 45d of this Directive, resolution authorities shall apply paragraphs 1 to 6 of this Article on the basis of the estimated combined buffer requirement resulting from the methodology set out in the delegated act adopted pursuant to Article 45c(4) of this Directive. Article 128, fourth paragraph, of Directive 2013/36/EU shall apply. The resolution authority shall include the estimated combined buffer requirement referred to in the first subparagraph of this paragraph in the decision determining the requirements referred to in Articles 45c and 45d. The entity shall make the estimated combined buffer requirement publicly available together with the information referred to in Article 45i(3). ; (11) Article 17 is amended as follows: (a) the following paragraph is inserted: 3a. Where the resolution authority finds that the measures proposed by the entity concerned effectively reduce or remove the substantive impediments to resolvability, the resolution authority shall take a decision, after consulting the competent authority. That decision shall indicate that the resolution authority has assessed the measures proposed as adequate for effectively reducing or removing the substantive impediments to resolvability and shall require the entity to implement the measures proposed. ; (b) in paragraph 5, the introductory wording is replaced by the following For the purposes of paragraph 4, resolution authorities shall have at least the power to take any of the following measures: ; (12) Article 18 is amended as follows: (a) in paragraph 2, the first subparagraph is replaced by the following: The group-level resolution authority, in cooperation with the consolidating supervisor, shall prepare and submit a report to the Union parent undertaking, to the resolution authorities of subsidiaries, which shall provide it to the subsidiaries within their remit, and to the resolution authorities of jurisdictions in which significant branches are located. The report shall be prepared after consulting the competent authorities, and shall analyse the substantive impediments to the effective application of the resolution tools and to the exercise of the resolution powers in relation to the group, and also in relation to resolution groups where a group is composed of more than one resolution group. The report shall consider the impact on the group’s business model and recommend any proportionate and targeted measures that, in the view of the group-level resolution authority, are necessary or appropriate to remove those impediments. ; (b) paragraph 4 is replaced by the following: 4. The group-level resolution authority shall communicate any measure proposed by the Union parent undertaking to the consolidating supervisor, EBA, the resolution authorities of the subsidiaries and the resolution authorities of the jurisdictions in which significant branches are located insofar as that measure is relevant to those significant branches. The group-level resolution authority and the resolution authorities of the subsidiaries, after consulting the competent authorities and the resolution authorities of jurisdictions in which significant branches are located, shall do everything within their power to reach a joint decision within the resolution college regarding the identification of substantive impediments, and if necessary, the assessment of the measures proposed by the Union parent undertaking and the measures required by the authorities in order to address or remove those impediments, which shall take into account the potential impact of the measures in all Member States where the group operates. ; (c) paragraph 9 is replaced by the following: 9. In the absence of a joint decision on the taking of any measures referred to in Article 17(5), point (g), (h) or (k), of this Directive EBA may, upon the request of a resolution authority in accordance with paragraph 6, 6a or 7 of this Article, assist the resolution authorities in reaching an agreement in accordance with Article 19(3) of Regulation (EU) No 1093/2010. ; (13) Articles 27 and 28 are replaced by the following: Article 27 Early intervention measures 1. Member States shall ensure that competent authorities consider without undue delay and, if appropriate, apply early intervention measures where an institution or entity referred to in Article 1(1), point (b), (c) or (d): (a) meets the conditions referred to in Article 102 of Directive 2013/36/EU or in Article 38 of Directive (EU) 2019/2034, or the competent authority has determined, in the context of a supervisory review and evaluation process in accordance with Article 97 of Directive 2013/36/EU, that the arrangements, strategies, processes and mechanisms implemented by the institution or entity and the own funds and liquidity held by that institution or entity do not ensure a sound management and coverage of its risks, and either of the following applies: (i) the institution or entity has not taken the remedial actions required by the competent authority, including the measures referred to in Article 104 of Directive 2013/36/EU or in Article 39 of Directive (EU) 2019/2034; (ii) the competent authority deems that remedial actions other than early intervention measures are insufficient to address the problems of that institution or entity; (b) breaches the requirements laid down in Article 45e or 45f of this Directive; or (c) infringes or is likely to infringe, in the 12 months following the assessment of the competent authority, any of the requirements laid down in Title II of Directive 2014/65/EU or in Articles 3 to 7, 14 to 17 or 24, 25 and 26 of Regulation (EU) No 600/2014 of the European Parliament and of the Council. The competent authority may determine that the condition referred to in the first subparagraph, point (a)(ii), of this paragraph is met without having previously taken other remedial actions, including the exercise of the powers referred to in Article 104 of Directive 2013/36/EU or in Article 39 of Directive (EU) 2019/2034. For the purposes of the first subparagraph, points (b) and (c), of this paragraph, Member States shall ensure that the resolution authorities or the competent authorities as defined in Article 4(1), point (26), of Directive 2014/65/EU inform the competent authority without delay of the infringement or likely infringement. 2. For the purposes of paragraph 1, early intervention measures shall include the following: (a) the requirement for the management body of the institution or entity to either: (i) implement one or more of the arrangements or measures set out in the recovery plan; or (ii) update the recovery plan in accordance with Article 5(2), where the circumstances that led to the early intervention are different from the assumptions set out in the initial recovery plan, and implement one or more of the arrangements or measures set out in the updated recovery plan within a specific timeframe; (b) the requirement for the management body of the institution or entity to convene or, if the management body fails to comply with that requirement, the direct convening by the competent authority of, a meeting of shareholders of the institution or entity, and in both cases set the agenda and require certain decisions to be considered for adoption by the shareholders; (c) the requirement for the management body of the institution or entity to draw up a plan, in accordance with the recovery plan where applicable, for negotiation on restructuring of debt with some or all of its creditors; (d) the requirement to change the legal structure of the institution or entity; (e) the requirement to remove, or replace in accordance with Article 28, the senior management or management body of the institution or entity in its entirety or with regard to individuals; (f) the appointment of one or more temporary administrators to the institution or entity in accordance with Article 29; (g) the requirement for the management body of the institution or entity to draw up a plan that the institution or entity can implement in the event that it decides to initiate a voluntary wind-down of its activities. 3. Competent authorities shall choose the appropriate early intervention measures referred to in paragraph 2 of this Article on the basis of what is proportionate to the objectives pursued, having regard to the seriousness of the infringement or likely infringement and the speed of the deterioration of the financial situation of the institution or entity referred to in Article 1(1), point (b), (c) or (d), among other relevant information. 4. For each of the early intervention measures referred to in paragraph 2, the competent authorities shall set an implementation deadline which shall be strictly limited to the time necessary to implement the measure concerned under reasonable conditions. Competent authorities shall conduct an evaluation of the effectiveness of the measure immediately after expiry of the deadline and shall share that evaluation with the resolution authority. Where the evaluation concludes that the early intervention measures have not been fully implemented or are not effective, the competent authority may carry out an assessment of whether the condition referred to in Article 32(1), point (a), is met. 5. EBA shall, by 11 May 2028, issue guidelines in accordance with Article 16 of Regulation (EU) No 1093/2010 to promote the consistent application of the conditions referred to in paragraph 1 of this Article. Article 28 Replacement of the senior management or management body For the purposes of Article 27(2), point (e), Member States shall ensure that the new senior management or management body, or individual members thereof, are appointed in accordance with Union and national law and that such appointments are subject to the approval or consent of the competent authority. (14) Article 29 is amended as follows: (a) paragraphs 1, 2 and 3 are replaced by the following: 1. For the purposes of Article 27(2), point (f), Member States shall ensure that competent authorities may, on the basis of what is proportionate in the circumstances, appoint one or more temporary administrators to either: (a) temporarily replace the management body of the institution or entity referred to in Article 1(1), point (b), (c) or (d); or (b) work temporarily with the management body of the institution or entity referred to in Article 1(1), point (b), (c) or (d). At the time of appointment of the temporary administrator, the competent authority shall specify whether that appointment is for the purposes of the first subparagraph, point (a) or (b). For the purposes of the first subparagraph, point (b), the competent authority shall further specify at the time of appointment the role, duties and powers of the temporary administrator and any requirements for the management body of the institution or entity to consult or to obtain the consent of the temporary administrator prior to taking specific decisions or actions. Member States shall require the competent authority to make public the appointment of any temporary administrator, except where the temporary administrator does not have the power to represent the institution or entity referred to in Article 1(1), point (b), (c) or (d). Member States shall further ensure that any temporary administrator possesses sufficient knowledge, skills and experience to perform his or her duties and fulfils the requirements set out in Article 91(2) and (2a) of Directive 2013/36/EU. The assessment by the competent authority of whether the temporary administrator possesses such knowledge, skills and experience and complies with those requirements shall be an integral part of the decision to appoint that temporary administrator. 2. The competent authority shall specify the powers of the temporary administrator at the time of his or her appointment, on the basis of what is proportionate in the circumstances. Such powers may include some or all of the powers of the management body of the institution or entity referred to in Article 1(1), point (b), (c) or (d), under the statutes of the institution or entity and under national law, including the power to exercise some or all of the administrative functions of the management body of the institution or entity. The powers of the temporary administrator in relation to the institution or entity shall comply with the applicable company law. The competent authority may adjust such powers in the event of a change in circumstances. 3. The competent authority shall specify the role and functions of the temporary administrator at the time of his or her appointment. Such role and functions may include: (a) ascertaining the financial position of the institution or entity referred to in Article 1(1), point (b), (c) or (d); (b) managing the business or part of the business of the institution or entity referred to in Article 1(1), point (b), (c) or (d), to preserve or restore its financial position; (c) taking measures to restore the sound and prudent management of the business of the institution or entity referred to in Article 1(1), point (b), (c) or (d); (d) ensuring compliance by the institution or entity referred to in Article 1(1), point (b), (c) or (d), with any requirements pursuant to Article 30a(3), second subparagraph, (4), first subparagraph, or (5). The competent authority shall specify any limits on the role and functions of the temporary administrator at the time of his or her appointment. ; (b) in paragraph 5, the second subparagraph is replaced by the following: In any case, the temporary administrator may exercise the power to convene a general meeting of the shareholders of the institution or entity referred to in Article 1(1), point (b), (c) or (d), and to set the agenda of such a meeting only with the prior consent of the competent authority. ; (c) paragraphs 6 and 7 are replaced by the following: 6. At the request of the competent authority, the temporary administrator shall draw up reports on the financial position of the institution or entity referred to in Article 1(1), point (b), (c) or (d), and on the acts performed during his or her mandate, at intervals set by the competent authority. The temporary administrator shall, in any case, draw up such a report at the end of his or her mandate. 7. The temporary administrator shall be appointed for a maximum of one year. The competent authority may exceptionally extend that period once for a duration proportionate to the circumstances if the conditions for appointing the temporary administrator continue to be met. The competent authority shall be responsible for determining whether those conditions are met and for justifying any extension of the mandate of the temporary administrator to the shareholders. ; (15) Article 30 is amended as follows: (a) the title is replaced by the following: Coordination of early intervention measures in relation to groups ; (b) paragraphs 1 to 4 are replaced by the following: 1. Where the conditions for the application of early intervention measures under Article 27 are met in relation to a Union parent undertaking, the consolidating supervisor shall notify EBA and consult the other competent authorities within the supervisory college before deciding to apply an early intervention measure. 2. Following the notification and consultation referred to in paragraph 1 of this Article the consolidating supervisor shall decide whether to apply early intervention measures under Article 27 in respect of the relevant Union parent undertaking, taking into account the impact of those measures on the group entities in other Member States. The consolidating supervisor shall notify the decision to EBA and to the other competent authorities within the supervisory college. 3. Where the conditions for the application of early intervention measures under Article 27 are met in relation to a subsidiary of a Union parent undertaking, the competent authority responsible for the supervision on an individual basis that intends to take a measure in accordance with that Article shall notify EBA and consult the consolidating supervisor. Following the receipt of the notification, the consolidating supervisor may assess the likely impact of the application of early intervention measures under Article 27 to the institution or entity referred to in Article 1(1), point (b), (c) or (d), in question, on the group or on group entities in other Member States. The consolidating supervisor shall communicate that assessment to the competent authority within three days. Following that notification and consultation, the competent authority shall decide whether to apply an early intervention measure. The decision shall give due consideration to any assessment of the consolidating supervisor. The competent authority shall notify the decision to EBA, the consolidating supervisor and the other competent authorities within the supervisory college. 4. Where more than one competent authority intends to apply an early intervention measure under Article 27 to more than one institution or entity referred to in Article 1(1), point (b), (c) or (d), in the same group, the consolidating supervisor and the other relevant competent authorities shall assess whether it is more appropriate to appoint the same temporary administrator for all the entities concerned or to coordinate the application of the other early intervention measures to more than one institution or entity in order to facilitate solutions restoring the financial position of the institution or entity concerned. The assessment shall take the form of a joint decision of the consolidating supervisor and the other relevant competent authorities. The joint decision shall be reached within five days of the date of the notification referred to in paragraph 1 of this Article. The joint decision shall be reasoned and set out in a document which shall be provided by the consolidating supervisor to the Union parent undertaking. EBA may, at the request of a competent authority, assist the competent authorities in reaching an agreement in accordance with Article 31 of Regulation (EU) No 1093/2010. In the absence of a joint decision within five days, the consolidating supervisor and the competent authorities of subsidiaries may take individual decisions on the appointment of a temporary administrator to the institutions or entities referred to in Article 1(1), point (b), (c) or (d), for which they have responsibility and on the application of the other early intervention measures. ; (c) paragraph 6 is replaced by the following: 6. EBA may at the request of any competent authority assist the competent authorities that intend to apply one or more of the measures referred to in Article 27(2), point (a), of this Directive with respect to Section A, points (4), (10), (11) and (19), of the Annex to this Directive, in Article 27(2), point (c), of this Directive or in Article 27(2), point (d), of this Directive in reaching an agreement in accordance with Article 19(3) of Regulation (EU) No 1093/2010. ; (16) the following article is inserted in Title III: Article 30a Preparation for resolution 1. Member States shall ensure that competent authorities notify the resolution authorities without delay of the following: (a) any of the measures referred to in Article 104(1) of Directive 2013/36/EU or in Article 39(2) of Directive (EU) 2019/2034 that they take or require an institution or entity referred to in Article 1(1), point (b), (c) or (d), of this Directive to take; (b) that, as shown by supervisory activity, the conditions laid down in Article 27(1) are met in relation to an institution or entity referred to in Article 1(1), point (b), (c) or (d), irrespective of the application of any early intervention measure; (c) the application of any of the early intervention measures referred to in Article 27. Competent authorities shall closely monitor, in close cooperation with the resolution authorities, the situation of the institution or entity and its compliance with the measures referred to in the first subparagraph, point (a), that aim to address a deterioration of the situation of that institution or entity and with the early intervention measures referred to in the first subparagraph, point (c). 2. Member States shall ensure that competent authorities notify resolution authorities as early as possible where they consider that there is a material risk of one or more of the circumstances referred to in Article 32(4) applying in relation to an institution or entity referred to Article 1(1), point (b), (c) or (d). That notification shall contain: (a) the reasons for the notification; (b) an overview of the measures under consideration which would prevent the failure of the institution or entity concerned within a reasonable timeframe, their expected impact on the institution or entity as regards the circumstances referred to in Article 32(4) and the expected timeframe for the implementation of those measures. Following the receipt of the notification referred to in the first subparagraph of this paragraph, resolution authorities shall assess, in close cooperation with competent authorities, what constitutes a reasonable timeframe for the purposes of the assessment of the condition referred to in Article 32(1), point (b), taking into account the speed of the deterioration of the situation of the institution or entity referred to in Article 1(1), point (b), (c) or (d), the need to implement effectively the resolution strategy, and any other considerations relevant to the case. Resolution authorities may, at any time, reassess the timeframe and adjust it to the circumstances of the case. Resolution authorities shall communicate that assessment or reassessment to competent authorities as early as possible. Following the receipt of the notification referred to in the first subparagraph of this paragraph, competent authorities and resolution authorities shall, in close cooperation, monitor the situation of the institution or entity referred to in Article 1(1), point (b), (c) or (d), the implementation of relevant measures within their expected timeframe and any other relevant developments. For that purpose, competent authorities and resolution authorities shall meet regularly, with a frequency to be determined by the resolution authorities having regard to the circumstances of the case. Competent authorities and resolution authorities shall provide each other with any relevant information without delay. 3. Competent authorities shall provide resolution authorities with all the information requested by resolution authorities that is necessary for any of the following actions: (a) updating the resolution plan and preparing for the possible resolution of the institution or entity referred to in Article 1(1), point (b), (c) or (d); (b) carrying out the valuation referred to in Article 36. Where such information is not already available to competent authorities, resolution authorities and competent authorities shall cooperate and coordinate to obtain that information. For that purpose, competent authorities and resolution authorities shall have the power to require the institution or entity referred to in Article 1(1), point (b), (c) or (d), to provide such information, including through on-site inspections, and to provide each other with that information. 4. The powers of resolution authorities shall include the power to market to potential purchasers the institution or entity referred to in Article 1(1), point (b), (c) or (d), to make arrangements for such marketing, or to require the institution or entity to do so for the following purposes: (a) to prepare for the resolution of that institution or entity, subject to the criteria laid down in Article 39(2) and the confidentiality requirements laid down in Articles 84 and 84b; (b) to carry out the assessment by the resolution authority of the condition referred to in Article 32(1), point (b). Where, in the exercise of the power referred to in the first subparagraph, the resolution authority decides to directly market the institution or entity to potential purchasers, it shall have due regard to the circumstances of the case, in particular any preventive measures that may potentially be taken by a deposit guarantee scheme or any measures that may potentially be taken by an IPS, and to the potential impact of the exercise of that power on the institution or entity’s overall position. 5. Resolution authorities shall have the power to require the institution or entity referred to in Article 1(1), point (b), (c) or (d), to put in place the necessary arrangements, including a digital platform, for sharing information with potential purchasers or with advisors and valuers engaged by the resolution authority. Where the resolution authority exercises that power, Article 84(1), points (e) and (f), shall apply. 6. The prior notification by the competent authority in accordance with paragraph 1, first subparagraph, of this Article shall not be a necessary condition for resolution authorities to prepare for the resolution of the institution or entity referred to in Article 1(1), point (b), (c) or (d), or to exercise the powers referred to in paragraphs 3, 4 and 5 of this Article. 7. Resolution authorities shall inform competent authorities of any action taken pursuant to paragraphs 3, 4 and 5 without delay. 8. Member States shall ensure that competent authorities and resolution authorities closely cooperate in the following cases: (a) when considering taking the measures referred to in paragraph 1, first subparagraph, point (a), of this Article, that aim to address a deterioration of the situation of an institution or entity referred to in Article 1(1), point (b), (c) or (d), and the measures referred to in paragraph 1, first subparagraph, point (c), of this Article; (b) when considering taking any of the actions referred to in paragraphs 3, 4 and 5; (c) during the implementation of the actions referred to in points (a) and (b) of this subparagraph. Competent authorities and resolution authorities shall ensure that those measures and actions are consistent, coordinated and effective. ; (17) in Article 31(2), point (c) is replaced by the following: (c) to protect public funds by minimising reliance on extraordinary public financial support, in particular when provided from the budget of a Member State; ; (18) Article 32 is amended as follows: (a) paragraphs 1 and 2 are replaced by the following: 1. Member States shall ensure that resolution authorities take a resolution action in relation to an institution if resolution authorities determine, upon receiving a communication pursuant to paragraph 2, or on their own initiative, and considering the need to implement effectively the resolution strategy, that all of the following conditions are met: (a) the institution is failing or is likely to fail; (b) having regard to the timing and other relevant circumstances, there is no reasonable prospect that any alternative private sector measures, including measures by an IPS, preventive measures as referred to in Article 11(3) of Directive 2014/49/EU, supervisory action, early intervention measures, or the write-down or conversion of relevant capital instruments and eligible liabilities as referred to in Article 59(2) of this Directive, taken in respect of the institution, would prevent the failure of the institution within a reasonable timeframe; (c) a resolution action is necessary in the public interest pursuant to paragraph 5. 2. Member States shall ensure that the competent authority makes an assessment of the condition referred to in paragraph 1, point (a), after having consulted the resolution authority. Member States may provide that, in addition to the competent authority, the assessment of the condition referred to in paragraph 1, point (a), can be made by the resolution authority, after consulting the competent authority, where resolution authorities under national law have the necessary tools for making such an assessment including, in particular, adequate access to the relevant information. In such a case, Member States shall ensure that the competent authority provides the resolution authority, without delay, with any relevant information that the latter requests in order to carry out its assessment, before or after being informed by the resolution authority of its intention to make that assessment. The assessment of the condition referred to in paragraph 1, point (b), shall be made by the resolution authority in close cooperation with the competent authority. The competent authority shall, without delay, provide the resolution authority with any relevant information that the resolution authority requests in order to carry out its assessment. The competent authority may also inform the resolution authority that it considers the condition laid down in paragraph 1, point (b), to be met. When assessing the conditions referred to in paragraph 1, points (a) and (b), the competent authority or the resolution authority shall seek the latest available information from the deposit guarantee scheme or, where relevant, from the IPS of which the institution is a member, that would be relevant for such assessment, including whether the deposit guarantee scheme or the IPS can prevent the failure. ; (b) paragraph 4 is amended as follows: (i) in the first subparagraph, point (d) is replaced by the following: (d) extraordinary public financial support is required, except where such support is granted in one of the forms referred to in Article 32c. ; (ii) the second to fifth subparagraphs are deleted; (c) paragraph 5 is replaced by the following: 5. For the purposes of paragraph 1, first subparagraph, point (c), a resolution action shall not be necessary in the public interest if the resolution authority concludes that none of the resolution objectives would be at risk in the event that the institution is wound up under normal insolvency proceedings. If the resolution authority concludes that one or more of the resolution objectives would be at risk in the event that the institution is wound up under normal insolvency proceedings, the resolution authority shall conclude that a resolution action is necessary in the public interest where the resolution action is necessary to achieve, and is proportionate to, one or more of the resolution objectives and where the winding up of the institution under normal insolvency proceedings would not meet the resolution objectives which are at risk more effectively. Member States shall ensure that when carrying out the assessment referred to in the first subparagraph, the resolution authority, on the basis of the information available to it at the time of that assessment, considers and compares any extraordinary public financial support that can reasonably be expected to be granted to the institution, both in the event of resolution and in the event of winding up in accordance with the applicable national law. Member States shall ensure that when carrying out the assessment referred to in the second subparagraph, the resolution authority considers the costs of resolution and of normal insolvency proceedings and seeks to minimise and avoid destruction of value, unless necessary to achieve the resolution objectives. ; (19) Articles 32a and 32b are replaced by the following: Article 32a Conditions for resolution with regard to a central body and credit institutions or financial institutions permanently affiliated to a central body Member States shall ensure that resolution authorities are able to take a resolution action in relation to a central body and all credit institutions or financial institutions permanently affiliated to it that are part of the same resolution group where the central body and all credit institutions or financial institutions permanently affiliated to it, or the resolution group to which they belong, comply as a whole with the conditions laid down in Article 32(1). Article 32b Proceedings in respect of institutions and entities that are not subject to resolution action 1. Member States shall ensure that, when a resolution authority determines that an institution or entity referred to in Article 1(1), point (b), (c) or (d), meets the conditions laid down in Article 32(1), points (a) and (b), but not the condition laid down in Article 32(1), point (c), the competent authority or the resolution authority initiates or requests the initiation of the relevant administrative or judicial procedure, including, where available, a voluntary procedure, to wind up the institution or entity in an orderly manner in accordance with the applicable national law. 2. Member States shall ensure that an institution or entity referred to in Article 1(1), point (b), (c) or (d), which is wound up in an orderly manner in accordance with the applicable national law in the circumstances referred to in paragraph 1 of this Article, including in a voluntary winding up procedure, exits the market or terminates its banking activities within a reasonable timeframe. 3. Member States shall ensure that when a resolution authority determines that an institution or entity referred to in Article 1(1), point (b), (c) or (d), meets the conditions laid down in Article 32(1), points (a) and (b), but not the condition laid down in Article 32(1), point (c), that determination is a sufficient condition for the competent authority to withdraw that institution or entity’s authorisation. 4. Member States shall ensure that the withdrawal of the authorisation of the institution or entity referred to in Article 1(1), point (b), (c) or (d), is a sufficient condition for the relevant national administrative or judicial authority to be able to initiate, without delay, the procedure to wind up the institution or entity in an orderly manner in accordance with the applicable national law. ; (20) the following article is inserted: Article 32c Extraordinary public financial support 1. Member States shall ensure that extraordinary public financial support outside of resolution action may be granted to an institution or entity referred to in Article 1(1), point (b), (c) or (d), on an exceptional basis, provided that the extraordinary public financial support complies with the conditions and requirements established in the Union State aid framework, only in the following cases: (a) where, to remedy a serious disturbance in the economy of a Member State of an exceptional or systemic nature and to preserve financial stability, the extraordinary public financial support takes any of the following forms: (i) a State guarantee to back liquidity facilities provided by central banks in accordance with the central banks’ conditions; (ii) a State guarantee of newly issued liabilities; (iii) an acquisition of own funds instruments other than Common Equity Tier 1 instruments or of other capital instruments, or a use of impaired asset measures, at prices, duration and other terms that do not confer an undue advantage upon the institution or entity concerned, where none of the circumstances referred to in Article 32(4), point (a), (b) or (c), or Article 59(3) are present at the time the public support is granted; (b) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme, as referred to in Article 11(3) of Directive 2014/49/EU; (c) where the extraordinary public financial support takes the form of an intervention by a deposit guarantee scheme, as referred to in Article 11(5) of Directive 2014/49/EU; (d) where the extraordinary public financial support takes the form of State aid granted to an institution or entity referred to in Article 32b of this Directive, other than the support granted by a deposit guarantee scheme pursuant to Article 11(5) of Directive 2014/49/EU. 2. The support measures referred to in paragraph 1, point (a), shall: (a) be confined to solvent institutions or entities, as confirmed by the competent authority; (b) be of a precautionary and temporary nature and be based on a predefined strategy, approved by the competent authority, to exit the support measures, which includes a clearly specified termination date, sale date or repayment schedule for each of those measures; (c) be proportionate to remedy the consequences of the serious disturbance in the economy of a Member State of an exceptional or systemic nature and to preserve financial stability; and (d) not be used to offset losses that the institution or entity has incurred or is likely to incur over at least the following 12 months. The predefined strategy referred to in the first subparagraph, point (b), of this paragraph shall not be disclosed until after the institution or entity exits the support measures concerned, or until after the assessment referred to in paragraph 6, second subparagraph, of this Article has been completed, subject to non-delayable disclosure obligations as referred to