# The Bank Recovery and Resolution (Amendment) (EU Exit) Regulations 2020, Regulation 48: Amendment of the Bank Recovery and Resolution (No.2) Order 2014


In article 126—
(a) in paragraph (1) at the end insert “for each resolution group”;
(b) in paragraph (2) after “entity” insert “in the resolution group”;
(c) in paragraph (3)—
(i) in the opening words after “entity” insert “in the resolution group”; and
(ii) in paragraph (a) at the end insert “for the resolution group”;
(d) in paragraph (8)(a), for “criteria set out in Article 45.6 of the recovery and resolution directive” substitute—
“following criteria—
(i) the need to ensure that each group institution can be resolved by the application of the resolution tools including, where appropriate, by making special bail-in provision within the meaning of section 48B of the Banking Act 2009, in a way that meets the special resolution objectives;
(ii) the need to ensure, in appropriate cases, that each group institution has sufficient eligible liabilities to ensure that, if mandatory reduction provision within the meaning of section 6B of the Banking Act 2009 or special bail-in provision were made—
(aa) losses could be absorbed; and
(ab) the capital ratio and, if applicable, the leverage ratio, of the group institution could be restored,
to a level necessary to enable it to continue to comply with the conditions for authorisation under Part 4A of FSMA and to continue to carry out the activities for which it is authorised;
(iii) the need to ensure that, if the resolution plan anticipates that certain classes of eligible liabilities might be excluded from bail-in under section 48B(10) of the Banking Act 2009 or that certain classes of eligible liabilities might be transferred to a recipient in full under a partial transfer—
(aa) each group institution has sufficient other eligible liabilities or own funds to ensure that losses could be absorbed; and
(ab) the capital ratio and, if applicable, the leverage ratio, of the group institution could be restored,
to the level necessary to enable it to continue to comply with the conditions for authorisation under Part 4A of FSMA and to continue to carry out the activities for which it is authorised;
(iv) the size, the business model, the funding model and the risk profile of each group institution; and
(v) the extent to which the failure of each group institution would have an adverse effect on financial stability, including, due to its interconnectedness with other institutions or entities or with the rest of the financial system, through contagion to other institutions or entities.”.

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Source: https://www.legislation.gov.uk/ukdsi/2020/9780348213676/regulation/48 (the official version)
Page: https://openlegislation.uk/draft-bank-recovery-and-resolution-amendment-eu-exit-regulations-2020/regulation-48
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.