Recitals
- Recital (1)The Union resolution framework for credit institutions and investment firms (institutions) was established in the aftermath of the…
- Recital (2)Several years into its implementation, the Union resolution framework does not deliver as intended with respect to some of those…
- Recital (3)Pursuant to Regulation (EU) No 806/2014, Member States which have established a close cooperation between the European Central Bank (ECB)…
- Recital (4)The intensity and level of detail of the resolution planning work needed with respect to subsidiaries that have not been identified as…
- Recital (5)An entity that is being wound up under national law, following a determination that the entity is failing or is likely to fail and a…
- Recital (6)The Board can currently decide to prohibit certain distributions where an entity, whether or not it is a resolution entity, fails to meet…
- Recital (7)Directive 2014/59/EU and Regulation (EU) No 575/2013 of the European Parliament and of the Council lay down powers to be exercised by…
- Recital (8)Deposits that meet the conditions to qualify as eligible liabilities can be used towards compliance with the MREL. However, given the…
- Recital (9)In order to avoid cliff-edge effects, it is necessary to grandfather the existing deposits qualifying as eligible liabilities. For deposits…
- Recital (10)Regulations (EU) 2019/876 and (EU) 2019/877 of the European Parliament and of the Council and Directive (EU) 2019/879 of the European…
- Recital (11)For certain resolution entities, the preferred resolution strategy set out in the resolution plan or the group resolution plan primarily…
- Recital (12)Regulation (EU) No 806/2014 does not include dedicated rules on transitional arrangements and intermediate target levels for meeting the…
- Recital (13)Pursuant to Article 4 of Council Regulation (EU) No 1024/2013, the ECB is competent to carry out supervisory tasks in relation to early…
- Recital (14)It is necessary to ensure that the Board is able to prepare for the possible resolution of an entity. The ECB or the relevant national…
- Recital (15)It is necessary to ensure timely action and early coordination between the Board and the ECB, or the relevant national competent authority,…
- Recital (16)To cover material infringements of prudential requirements, it is necessary to further specify the conditions for determining that parent…
- Recital (17)The resolution framework is meant to have the potential to be applied to any entity, irrespective of its size and business model, if the…
- Recital (18)During the resolution planning stage, when deciding whether an entity should be earmarked for resolution, the fact that an entity is…
- Recital (19)The winding up of an entity under normal insolvency proceedings might, in some cases, jeopardise financial stability and interrupt the…
- Recital (20)When carrying out the public interest assessment, the Board should assess whether any of the resolution objectives would be at risk if the…
- Recital (21)In light of the experience acquired in the implementation of Regulation (EU) No 806/2014 and Directives 2014/49/EU and 2014/59/EU, it is…
- Recital (22)To preserve market discipline, protect public funds and avoid distortions of competition, precautionary measures should remain the…
- Recital (23)The aim of precautionary recapitalisation is to support viable entities identified as likely to encounter temporary difficulties in the…
- Recital (24)Precautionary measures should be limited to the amount that the entity would need to maintain its solvency in the event of an adverse…
- Recital (25)It is important to ensure swift and timely resolution action by the Board where such action involves the granting of State aid or Fund aid.…
- Recital (26)The procedure governing entry into resolution and the procedure governing a decision to apply the write-down and conversion powers are…
- Recital (27)It is possible that whereas resolution action is to be applied to a resolution entity that is part of a resolution group, write-down and…
- Recital (28)To increase legal certainty, and in view of the potential relevance of liabilities arising from future uncertain events, including the…
- Recital (29)It should also be specified that liabilities of uncertain timing or amount, where those liabilities are based on present obligations…
- Recital (30)It is necessary to ensure that a liability that could arise in the future from an uncertain event or a liability of uncertain timing or…
- Recital (31)In certain circumstances, after the Fund has provided a contribution up to the maximum of 5 % of the entity’s total liabilities including…
- Recital (32)The success of resolution hinges on timely access for the Board to relevant information from the entities that fall under the…
- Recital (33)Article 86(1) of Directive 2014/59/EU provides that normal insolvency proceedings in relation to entities within the scope of that…
- Recital (34)The selection criteria for the position of the Vice-Chair of the Board are the same as those for the selection of the Chair and other…
- Recital (35)To allow for a preliminary assessment by the Board in its plenary session of the preliminary draft budget before the Chair presents the…
- Recital (36)In order to further strengthen cooperation within the SRM between the Board and national resolution authorities, the Board in its executive…
- Recital (37)The procedure for conducting consultations regarding guidelines, general instructions and any other instruments of general application…
- Recital (38)After the initial build-up period for the Fund provided for in Regulation (EU) No 806/2014, its available financial means might face slight…
- Recital (39)Irrevocable payment commitments are one of the components of the available financial means of the Fund. It is therefore necessary to…
- Recital (40)The maximum annual amount of extraordinary ex post contributions to the Fund that are allowed to be called is currently limited to three…
- Recital (41)An adequate link between pay and performance should also be maintained in the event of resolution, in particular where losses are likely to…
- Recital (42)The Fund can be used to support the application of the sale of business tool or of the bridge institution tool whereby a set of assets,…
- Recital (43)To ensure sufficient flexibility and to make it easier for DGSs to intervene in support of the use of the resolution tools, where they lead…
- Recital (44)The contribution of the DGS in resolution should be subject to certain limits. First, the total amount of the contribution of the DGS in…
- Recital (45)It should be specified that the DGS should only be able to contribute to a transfer of liabilities other than covered deposits in the…
- Recital (46)Given the possibility to use DGS in resolution, it is necessary to further specify the conditions under which the DGS contribution can…
- Recital (47)If the contribution made by shareholders and creditors of the institution under resolution through reductions, write-down or conversion of…
- Recital (48)In extraordinary circumstances, it can occur that the contribution of the Fund of 5 % of total liabilities including own funds is not…
- Recital (49)In light of the mutualised nature of the Fund, it is appropriate to establish a dedicated procedure to be followed once its net accumulated…
- Recital (50)Where the funds of the DGS are used in the application of the sale of business tool or the bridge institution tool, in isolation or…
- Recital (51)Transparency is key to ensuring market integrity, market discipline, and the protection of investors. To ensure that the Board is able to…
- Recital (52)To ensure consistency, the amendments introduced to Regulation (EU) No 806/2014 by this Regulation that are similar to the amendments…
- Recital (53)Since the objective of this Regulation, namely to improve the effectiveness and efficiency of the recovery and resolution framework for…
- Recital (54)Regulation (EU) No 806/2014 should therefore be amended accordingly,
Text as published in the Official Journal; for the authentic version, see EUR-Lex.
