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 competent authority should therefore inform the Board of the deterioration of the situation of an entity sufficiently early, and the Board should have the necessary powers for the implementation of preparatory measures. Importantly, to enable the Board to react as swiftly as possible to a deterioration of the situation of an entity, the prior application of early intervention measures should not be a condition for the Board to make arrangements for the marketing of the entity or to request information to update the resolution plan and prepare the valuation. When marketing an entity that is a member of an institutional protection scheme (IPS), the Board should consider measures that the IPS could take prior to resolution to avert the material risk that the entity will fail or become likely to fail. To ensure a consistent, coordinated, effective and timely reaction to the deterioration of the situation of an entity and to prepare properly for a possible resolution, it is necessary to enhance the interaction and coordination between the ECB, the national competent authorities and the Board. As soon as an entity meets the conditions for the application of early intervention measures, the ECB, the national competent authorities and the Board should increase their exchanges of information, including provisional information, and monitor the situation of the entity jointly.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
