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 conversion powers are to be applied to another entity of the same group. Interdependencies between such entities, including the existence of consolidated capital requirements to be restored and the need to activate loss upstream and capital downstream mechanisms, can make it challenging to assess the loss absorption and recapitalisation needs of each entity separately and thus to determine the necessary amounts to be written down and converted for each entity. A procedure whereby the Board should take such interdependencies into account in the application of the power to write down and convert capital instruments and eligible liabilities in those situations should therefore be specified. For that purpose, where one entity meets the conditions for the application of the write-down and conversion powers and another entity within the same group meets at the same time the conditions for resolution, the Board should adopt a single resolution scheme covering both entities.
Text as published in the Official Journal, reproduced verbatim (including any typographical quirks of the source). For the authentic version, see EUR-Lex.
