4. In assessing whether the provision of financial support is in the interest of the providing …

In assessing whether the provision of financial support is in the interest of the providing entity, the competent authority and institutions should analyse and compare

• (a) the direct and indirect overall benefits for the providing entity resulting from a restoration of the financial soundness of the receiving entity and the overall risks for the financial position of the providing entity to be expected should the support not be provided, and the risk of a default of the receiving entity in this case, with
• (b) the risks for the providing entity resulting from the provision of financial support, including the default risk of the receiving entity and the loss to the providing entity given default of the receiving entity after receiving the support. The analysis of the default risk of the receiving entity should be based on the elements set out in Article 2 of the RTS specifying the conditions for group financial support under Article 23 of Directive 2014/59/EU. This is without prejudice to considering on a case-by-case basis and at the discretion of the competent authority responsible for the providing entity, for the purpose of the comparative analysis of benefits and risks, further relevant elements the providing entity would consider in a credit assessment when deciding on granting a loan on the basis of all information available to the providing entity.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

• EBA - Published by the European Banking Authority at https://www.eba.europa.eu/