- Additional Tier 1 instruments
means capital instruments that meet the conditions laid down in Article 52(1) of Regulation (EU) No 575/2013;
- administrative or judicial authorities
shall mean such administrative or judicial authorities of the Member States as are competent for the purposes of reorganisation measures or winding-up proceedings;
- administrator
shall mean any person or body appointed by the administrative or judicial authorities whose task is to administer reorganisation measures;
- affected creditor
means a creditor whose claim relates to a liability that is reduced or converted to shares or other instruments of ownership by the exercise of the write down or conversion power pursuant to the use of the bail-in tool;
- affected holder
means a holder of instruments of ownership whose instruments of ownership are cancelled by means of the power referred to in point (h) of Article 63(1);
- aggregate amount
means the aggregate amount by which the resolution authority has assessed that bail-inable liabilities are to be written down or converted, in accordance with Article 46(1);
- appropriate authority
means authority of the Member State identified in accordance with Article 61 that is responsible under the national law of that State for making the determinations referred to in Article 59(3);
- asset management vehicle
means a legal person that meets the requirements laid down in Article 42(2);
- asset separation tool
means the mechanism for effecting a transfer by a resolution authority of assets, rights or liabilities of an institution under resolution to an asset management vehicle in accordance with Article 42;
- back-to-back transaction
means a transaction entered into between two group entities for the purpose of transferring, in whole or in part, the risk generated by another transaction entered into between one of those group entities and a third party;
- bail-in tool
means the mechanism for effecting the exercise by a resolution authority of the write-down and conversion powers in relation to liabilities of an institution under resolution in accordance with Article 43;
- bail-inable liabilities
means the liabilities and capital instruments that do not qualify as Common Equity Tier 1, Additional Tier 1 or Tier 2 instruments of an institution or entity referred to in point (b), (c) or (d) of Article 1(1) and that are not excluded from the scope of the bail-in tool pursuant to Article 44(2);
- branch
shall mean a branch as defined in Article 4(1)(17) of Regulation (EU) No 575/2013;
- bridge institution
means a legal person that meets the requirements laid down in Article 40(2);
- bridge institution tool
means the mechanism for transferring shares or other instruments of ownership issued by an institution under resolution or assets, rights or liabilities of an institution under resolution to a bridge institution, in accordance with Article 40;
- business day
means a day other than a Saturday, a Sunday or a public holiday in the Member State concerned;
- central counterparty
means a CCP as defined in point (1) of Article 2 of Regulation (EU) No 648/2012;
- combined buffer requirement
means combined buffer requirement as defined in point (6) of Article 128 of Directive 2013/36/EU.
- Common Equity Tier 1 capital
means Common Equity Tier 1 capital as calculated in accordance with Article 50 of Regulation (EU) No 575/2013;
- Common Equity Tier 1 instruments
means capital instruments that meet the conditions laid down in Article 28(1) to (4), Article 29(1) to (5) or Article 31(1) of Regulation (EU) No 575/2013;
- competent authority
shall mean a competent authority as defined in Article 4(1)(40) of Regulation (EU) No 575/2013 or a resolution authority within the meaning of Article 2(1)(18) of Directive 2014/59/EU in respect of reorganisation measures taken pursuant to that Directive;
- competent ministries
means finance ministries or other ministries of the Member States which are responsible for economic, financial and budgetary decisions at the national level according to national competencies and which have been designated in accordance with Article 3(5);
- conditions for resolution
means the conditions referred to in Article 32(1);
- consolidated basis
means the basis of the consolidated situation as defined in point (47) of Article 4(1) of Regulation (EU) No 575/2013;
- consolidating supervisor
means consolidating supervisor as defined in point (41) of Article 4(1) of Regulation (EU) No 575/2013;
- conversion rate
means the factor that determines the number of shares or other instruments of ownership into which a liability of a specific class will be converted, by reference either to a single instrument of the class in question or to a specified unit of value of a debt claim;
- core business lines
means business lines and associated services which represent material sources of revenue, profit or franchise value for an institution or for a group of which an institution forms part;
- covered bond
means a covered bond as defined in point (1) of Article 3 of Directive (EU) 2019/2162 of the European Parliament and of the Council or, with regard to an instrument that was issued before 8 July 2022, a bond as referred to in Article 52(4) of Directive 2009/65/EC of the European Parliament and of the Council, as applicable on the date of its issue;
- covered deposits
means covered deposits as defined in point (5) of Article 2(1) of Directive 2014/49/EU;
- credit institution
means a credit institution as defined in point (1) of Article 4(1) of Regulation (EU) No 575/2013, not including the entities referred to in Article 2(5) of Directive 2013/36/EU;
- crisis management measure
means a resolution action or the appointment of a special manager under Article 35 or a person under Article 51(2) or under Article 72(1);
- crisis prevention measure
means the exercise of powers to direct removal of deficiencies or impediments to recoverability under Article 6(6), the exercise of powers to address or remove impediments to resolvability under Article 17 or 18, the application of an early intervention measure under Article 27, the appointment of a temporary administrator under Article 29 or the exercise of the write down or conversion powers under Article 59;
- critical functions
means activities, services or operations the discontinuance of which is likely in one or more Member States, to lead to the disruption of services that are essential to the real economy or to disrupt financial stability due to the size, market share, external and internal interconnectedness, complexity or cross-border activities of an institution or group, with particular regard to the substitutability of those activities, services or operations;
- cross-border group
means a group having group entities established in more than one Member State;
- deposit guarantee scheme
means a deposit guarantee scheme introduced and officially recognised by a Member State pursuant to Article 4 of Directive 2014/49/EU;
- depositor
means a depositor as defined in point (6) of Article 2(1) of Directive 2014/49/EU;
- designated national macroprudential authority
means the authority entrusted with the conduct of macroprudential policy referred to in Recommendation B1 of the Recommendation of the European Systemic Risk Board of 22 December 2011 on the macroprudential mandate of national authorities (ESRB/2011/3);
- eligible deposits
means eligible deposits as defined in point (4) of Article 2(1) of Directive 2014/49/EU;
- eligible liabilities
means bail-inable liabilities that fulfil, as applicable, the conditions of Article 45b or point (a) of Article 45f(2) of this Directive, and Tier 2 instruments that meet the conditions of point (b) of Article 72a(1) of Regulation (EU) No 575/2013;
- emergency liquidity assistance
means the provision by a central bank of central bank money, or any other assistance that may lead to an increase in central bank money, to a solvent financial institution, or group of solvent financial institutions, that is facing temporary liquidity problems, without such an operation being part of monetary policy;
- extraordinary public financial support
means State aid within the meaning of Article 107(1) TFEU, or any other public financial support at supra-national level, which, if provided for at national level, would constitute State aid, that is provided in order to preserve or restore the viability, liquidity or solvency of an institution or entity referred to in point (b), (c) or (d) of Article 1(1) or of a group of which such an institution or entity forms part;
- financial contracts
includes the following contracts and agreements:
- financial holding company
means a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;
- financial institution
means a financial institution as defined in point (26) of Article 4(1) of Regulation (EU) No 575/2013;
- group
means a parent undertaking and its subsidiaries;
- group entity
means a legal person that is part of a group;
- group financing arrangement
means the financing arrangement or arrangements of the Member State of the group-level resolution authority;
- group recovery plan
means a group recovery plan drawn up and maintained in accordance with Article 7;
- group resolution
means either of the following:
- group resolution plan
means a plan for group resolution drawn up in accordance with Articles 12 and 13;
- group resolution scheme
means a plan drawn up for the purposes of group resolution in accordance with Article 91;
- group-level resolution authority
means the resolution authority in the Member State in which the consolidating supervisor is situated;
- home Member State
shall mean a home Member State as defined in Article 4(1)(43) of Regulation (EU) No 575/2013;
- host Member State
shall mean a host Member State as defined in Article 4(1)(44) of Regulation (EU) No 575/2013;
- institution
means a credit institution or an investment firm;
- institution under resolution
means an institution, a financial institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in respect of which a resolution action is taken;
- instrument
shall mean a financial instrument as defined in Article 4(1), point (50)(b) of Regulation (EU) No 575/2013.
- instruments of ownership
means shares, other instruments that confer ownership, instruments that are convertible into or give the right to acquire shares or other instruments of ownership, and instruments representing interests in shares or other instruments of ownership;
- intra-group guarantee
means a contract by which one group entity guarantees the obligations of another group entity to a third party;
- investment firm
means an investment firm as defined in point (22) of Article 4(1) of Regulation (EU) 2019/2033 of the European Parliament and of the Council which is subject to the initial capital requirement laid down in Article 9(1) of Directive (EU) 2019/2034 of the European Parliament and of the Council;
- investor
means an investor within the meaning of point (4) of Article 1 of Directive 97/9/EC of the European Parliament and of the Council;
- IPS
means an arrangement that meets the requirements laid down in Article 113(7) of Regulation (EU) No 575/2013;
- liquidation entity
means a legal person established in the Union in respect of which the group resolution plan or, for entities that are not part of a group, the resolution plan, provides that the entity is to be wound up under normal insolvency proceedings, or an entity, within a resolution group other than a resolution entity, in respect of which the group resolution plan does not provide for the exercise of write-down and conversion powers;
- liquidator
shall mean any person or body appointed by the administrative or judicial authorities whose task is to administer winding-up proceedings;
- management body
means a management body as defined in point (7) of Article 3(1) of Directive 2013/36/EU;
- material subsidiary
means a material subsidiary as defined in point (135) of Article 4(1) of Regulation (EU) No 575/2013;
- micro, small and medium-sized enterprises
means micro, small and medium-sized enterprises as defined with regard to the annual turnover criterion referred to in Article 2(1) of the Annex to Commission Recommendation 2003/361/EC;
- mixed financial holding company
means a mixed financial holding company as defined in point (21) of Article 4(1) of Regulation (EU) No 575/2013;
- mixed-activity holding company
means a mixed-activity holding company as defined in point (22) of Article 4(1) of Regulation (EU) No 575/2013;
- netting arrangement
means an arrangement under which a number of claims or obligations can be converted into a single net claim, including close-out netting arrangements under which, on the occurrence of an enforcement event (however or wherever defined) the obligations of the parties are accelerated so as to become immediately due or are terminated, and in either case are converted into or replaced by a single net claim, including ‘close-out netting provisions’ as defined in point (n)(i) of Article 2(1) of Directive 2002/47/EC and ‘netting’ as defined in point (k) of Article 2 of Directive 98/26/EC;
- normal insolvency proceedings
means collective insolvency proceedings which entail the partial or total divestment of a debtor and the appointment of a liquidator or an administrator normally applicable to institutions under national law and either specific to those institutions or generally applicable to any natural or legal person;
- own funds
means own funds as defined in point (118) of Article 4(1) of Regulation (EU) No 575/2013;
- own funds requirements
means the requirements laid down in Articles 92 to 98 of Regulation (EU) No 575/2013;
- parent financial holding company in a Member State
means a parent financial holding company in a Member State as defined in point (30) of Article 4(1) of Regulation (EU) No 575/2013;
- parent institution in a Member State
means a parent institution in a Member State as defined in point (28) of Article 4(1) of Regulation (EU) No 575/2013;
- parent mixed financial holding company in a Member State
means a parent mixed financial holding company in a Member State as defined in point (32) of Article 4(1)of Regulation (EU) No 575/2013;
- parent undertaking
means a parent undertaking as defined in point (15)(a) of Article 4(1) of Regulation (EU) No 575/2013;
- recipient
means the entity to which shares, other instruments of ownership, debt instruments, assets, rights or liabilities, or any combination of those items are transferred from an institution under resolution;
- recovery capacity
means the capability of an institution to restore its financial position following a significant deterioration;
- recovery plan
means a recovery plan drawn up and maintained by an institution in accordance with Article 5;
- regulated market
means a regulated market as defined in point (21) of Article 4(1) of Directive 2014/65/EU;
- relevant parent institution
means a parent institution in a Member State, a Union parent institution, a financial holding company, a mixed financial holding company, a mixed-activity holding company, a parent financial holding company in a Member State, a Union parent financial holding company, a parent mixed financial holding company in a Member State, or a Union parent mixed financial holding company, in relation to which the bail-in tool is applied;
- relevant third-country authority
means a third-country authority responsible for carrying out functions comparable to those of resolution authorities or competent authorities pursuant to this Directive;
- reorganisation measures
shall mean measures which are intended to preserve or restore the financial situation of a credit institution or an investment firm as defined in Article 4(1), point (2) of Regulation (EU) No 575/2013 and which could affect third parties’ pre-existing rights, including measures involving the possibility of a suspension of payments, suspension of enforcement measures or reduction of claims;
- resolution
means the application of a resolution tool or a tool referred to in Article 37(9) in order to achieve one or more of the resolution objectives referred to in Article 31(2);
- resolution action
means the decision to place an institution or entity referred to in point (b), (c) or (d) of Article 1(1) under resolution pursuant to Article 32 or 33, the application of a resolution tool, or the exercise of one or more resolution powers;
- resolution authority
means an authority designated by a Member State in accordance with Article 3;
- resolution college
means a college established in accordance with Article 88 to carry out the tasks referred to in Article 88(1);
- resolution entity
means:
- resolution group
means:
- resolution objectives
means the resolution objectives referred to in Article 31(2);
- resolution plan
means a resolution plan for an institution drawn up in accordance with Article 10;
- resolution power
means a power referred to in Articles 63 to 72;
- resolution tool
means a resolution tool referred to in Article 37(3);
- sale of business tool
means the mechanism for effecting a transfer by a resolution authority of shares or other instruments of ownership issued by an institution under resolution, or assets, rights or liabilities, of an institution under resolution to a purchaser that is not a bridge institution, in accordance with Article 38;
- secured liability
means a liability where the right of the creditor to payment or other form of performance is secured by a charge, pledge or lien, or collateral arrangements including liabilities arising from repurchase transactions and other title transfer collateral arrangements;
- senior management
means senior management as defined in point (9) of Article 3(1) of Directive 2013/36/EU;
- set-off arrangement
means an arrangement under which two or more claims or obligations owed between the institution under resolution and a counterparty can be set off against each other;
- shareholders
means shareholders or holders of other instruments of ownership;
- significant branch
means a branch that would be considered to be significant in a host Member State in accordance with Article 51(1) of Directive 2013/36/EU;
- subordinated eligible instruments
means instruments that meet all of the conditions referred to in Article 72a of Regulation (EU) No 575/2013 other than paragraphs (3) to (5) of Article 72b of that Regulation;
- subsidiary
means a subsidiary as defined in point (16) of Article 4(1) of Regulation (EU) No 575/2013, and for the purpose of applying Articles 7, 12, 17, 18, 45 to 45m, 59 to 62, 91 and 92 of this Directive to resolution groups referred to in point (b) of point (83b) of this paragraph, includes, where and as appropriate, credit institutions that are permanently affiliated to a central body, the central body itself, and their respective subsidiaries, taking into account the way in which such resolution groups comply with Article 45e(3) of this Directive;
- supervisory college
means a college of supervisors established in accordance with Article 116 of Directive 2013/36/EU;
- systemic crisis
means a disruption in the financial system with the potential to have serious negative consequences for the internal market and the real economy.
- termination right
means a right to terminate a contract, a right to accelerate, close out, set-off or net obligations or any similar provision that suspends, modifies or extinguishes an obligation of a party to the contract or a provision that prevents an obligation under the contract from arising that would otherwise arise;
- third-country institution
means an entity, the head office of which is established in a third country, that would, if it were established within the Union, be covered by the definition of an institution;
- third-country parent undertaking
means a parent undertaking, a parent financial holding company or a parent mixed financial holding company, established in a third country;
- third-country resolution proceedings
means an action under the law of a third country to manage the failure of a third-country institution or a third-country parent undertaking that is comparable, in terms of objectives and anticipated results, to resolution actions under this Directive;
- Tier 2 instruments
means capital instruments or subordinated loans that meet the conditions laid down in Article 63 of Regulation (EU) No 575/2013;
- title transfer financial collateral arrangement
means a title transfer financial collateral arrangement as defined in point (b) of Article 2(1) of Directive 2002/47/EC of the European Parliament and of the Council;
- transfer powers
means the powers specified in point (c) or (d) of Article 63(1) to transfer shares, other instruments of ownership, debt instruments, assets, rights or liabilities, or any combination of those items from an institution under resolution to a recipient;
- Union branch
means a branch located in a Member State of a third-country institution;
- Union parent financial holding company
means an EU parent financial holding company as defined in point (31) of Article 4(1) of Regulation (EU) No 575/2013;
- Union parent institution
means an EU parent institution as defined in point (29) of Article 4(1) of Regulation (EU) No 575/2013;
- Union parent mixed financial holding company
means an EU parent mixed financial holding company as defined in point (33) of Article 4(1) of Regulation (EU) No 575/2013;
- Union parent undertaking
means a Union parent institution, a Union parent financial holding company or a Union parent mixed financial holding company;
- Union State aid framework
means the framework established by Articles 107, 108 and 109 TFEU and regulations and all Union acts, including guidelines, communications and notices, made or adopted pursuant to Article 108(4) or Article 109 TFEU;
- Union subsidiary
means an institution which is established in a Member State and which is a subsidiary of a third-country institution or a third-country parent undertaking;
- winding up
means the realisation of assets of an institution or entity referred to in point (b), (c) or (d) of Article 1(1);
- winding-up proceedings
shall mean collective proceedings opened and monitored by the administrative or judicial authorities of a Member State with the aim of realising assets under the supervision of those authorities, including where the proceedings are terminated by a composition or other, similar measure;
- write-down and conversion powers
means the powers referred to in Article 59(2) and in points (e) to (i) of Article 63(1);