1. Obecné úvahy

In accordance with Article 32(4)(a) and (c) of Directive 2014/59/EU an institution should be considered as failing or likely to fail if it does or if there are objective elements to support a determination that in the near future it will:

• - infringe regulatory liquidity requirements, including requirements imposed according to Article 105 of Directive 2013/36/EU, for continuing authorisation in a way that would justify the withdrawal of its authorisation by the competent authority; or
• - be unable to pay debts and liabilities as they fall due.

The determination whether the institution is likely to be unable to meet regulatory requirements for liquidity or to pay its debts and liabilities as they fall due should be based on objective elements including among other things:

• a. significant adverse developments affecting the evolution of the institution's liquidity position and sustainability of its funding profile, and its compliance with the minimum requirements for liquidity as stipulated in Regulation (EU) No 575/2013 and the additional requirements imposed under Article 105 of that Regulation or under any national minimum requirements for liquidity;
• b. significant non-temporary adverse evolution of the institution's liquidity buffer and its counterbalancing capacity. The assessment of the counterbalancing capacity dynamics should consider, where relevant:
• - highly probable liquidity inflows, including received committed credit and liquidity lines;
• - any forecasted contractual inflows;
• - the capacity to renew funding (including tenors and type of instruments of the new financing);
• - the access to long term funding;
• - extraordinary and large reduction or termination of liquidity lines from counterparties;
• c. a non-temporary increase in the costs of funding of the institution to an unsustainable level, especially reflected by an increase of the costs (for instance reflected in spreads) of secured and unsecured financing in relation to comparable institutions;
• d. a significant adverse evolution of the institution's current and future obligations. The assessment of the evolution of the institution's obligations should consider, where relevant:
• - expected and exceptional outflows of liquidity, including requests from counterparties of the institution for margin calls and/or early redemption of liabilities and emerging signs of potential bank runs;
• - expected and exceptional collateral requirements, as well as the evolution of haircuts on collateral by central counterparties and other counterparties;
• - any contingent obligation, including those arising from granted credit and liquidity lines;
• e. the position of the institution in the payment, clearing and settlement systems and any indication that the institution is experiencing difficulties to fulfil its obligations including executing payments in payment, clearing and settlement systems; or
• f. developments that would be likely to severely impair the institution's reputation, in particular significant rating downgrades by one or several rating agencies if they lead to substantial outflows or the inability to renew funding or to the activation of contractual triggers based on the external ratings.

Additional elements that should be considered, where relevant to the characteristics of the institution, include:

• a. significant adverse developments in the macro-economic environment that could threaten the institution’s financial position and viability, including developments in interest rates, real estate values or economic growth. Such developments should affect, directly or indirectly, the liquidity position of the institution in a significantly adverse way; or
• b. significant deterioration in the market perception of an institution reflected by signs of non-temporary deterioration in the absolute and relative evolution of market indicators, including, where available, equity-based indicators (for instance share price and book-to-market equity ratio), or debt-based indicators (for instance credit default swaps and subordinated debt spreads) indicating that an institution is likely to incur losses or face liquidity problems that could threaten its viability.