Paragraph 1 The context for resolution action

(1)

In drawing up a group resolution plan the Bank must have regard to the different circumstances under which group entities may meet the conditions for resolution.

(2)

The circumstances to which the Bank must have regard include the following—

(a)

that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and

(b)

that there is no such a situation or occurrence.

(3)

In drawing up a group resolution plan the Bank must not assume that any group entity will be in receipt of—

(a)

extraordinary public financial support other than financing arrangements made in accordance with F1section 228 or 229 of the Banking Act 2009;

(b)

emergency liquidity assistance M1; or

(c)

any other liquidity assistance provided by the Bank or any other central bank under non-standard collateralisation, tenor and interest rate terms.

Annotations

Textual amendments

F1: Words in Sch. 2 para. 1(3)(a) substituted (31.12.2020) by The Bank Recovery and Resolution and Miscellaneous Provisions (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1394), reg. 1(2), Sch. 3 para. 118(2); 2020 c. 1, Sch. 5 para. 1(1)

Marginal citations

M1: For the meaning of “emergency liquidity assistance” see the recovery and resolution directive, Article 2.1, point (29).

Notes on the whole SI

Textual amendments

F1: Order revoked (14.12.2023 for the revocation of art. 227) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 2 (with s. 1(4)); S.I. 2023/1382, reg. 2(c)(x)