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Article 10 Information exchange for performing group risk assessments and reaching joint decisions

United Kingdom

Original text. Later amendments are not shown.

1.

For the purposes of joint decisions on institution-specific prudential requirements as referred to in Article 113 of Directive 2013/36/EU, the consolidating supervisor and the relevant members of the college referred to in paragraph 1 of that Article shall exchange all information necessary, at both individual and consolidated level, to reach a joint decision.

2.

In particular, the consolidating supervisor and the relevant members of the college referred to in paragraph 1 shall exchange information on the outcomes of the supervisory review and evaluation process performed in accordance to Article 97 of Directive 2013/36/EU. This information shall provide the outcome of the assessment, at least, of the following elements:

(a)

business model analysis, including the assessment of the viability of current business model and sustainability of institution's forward-looking business strategy;

(b)

internal governance arrangements and institution-wide controls;

(c)

individual risks to institution's capital, covering the following elements:

  1. (i)

    inherent individual risks;

  2. (ii)

    risk management and controls;

(d)

capital adequacy assessment, including proposed required own funds pursuant to Article 104(1)(a) of Directive 2013/36/EU;

(e)

risks to institution's liquidity and funding, covering the following elements:

  1. (i)

    liquidity risk and funding risk;

  2. (ii)

    liquidity and funding risk management;

(f)

liquidity adequacy assessment, including proposed quantitative and qualitative liquidity measures pursuant to Article 105 of Directive 2013/36/EU;

(g)

other supervisory measures or early intervention measures taken or planned to be taken in order to address the inefficiencies identified as a result of the supervisory review and evaluation process;

(h)

results of the supervisory stress tests performed pursuant to Article 100 of Directive 2013/36/EU;

(i)

findings from on-site inspections and off-site monitoring that are relevant for the assessment of the risk profile of the group or any of its entities.