Contents
- 1. The competent authority of the home Member State and the r…
- 2. In case of such an event of adverse material effect on the…
- 3. Upon being alerted of an event of adverse material effect…
- 4. The competent authority of the home Member State and the m…
- 5. Based on the outcome of the assessment of the event of adv…
2.In case of such an event of adverse material effect on the risk profile of the institution or its significant branches established in a Member State, competent authorities shall assess the consequences of such event on the institution and its significant branches and determine:
(a)the nature and severity of the event;
(b)the impact or potential impact of the event on the available own funds and liquidity level of the institution and its significant branches and whether the institution continues to comply with Regulation (EU) No 575/2013 or Directive 2013/36/EU in adverse macroeconomic, microeconomic, and geopolitical conditions;
(c)the ability of the institution and its significant branches to operate in severe business disruption;
(d)risk of cross-border contagion and the potential systemic impact.
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