63. The resolvability assessment as referred to in section C in the Annex of Directive 2014/59/EU …

The resolvability assessment as referred to in section C in the Annex of Directive 2014/59/EU is to be built on the assessment of the institution’s legal and corporate structures (point (2) of said Section C in the Annex of Directive 2014/59/EU), the complexity of this structure and the difficulty in aligning business lines to group entities (point (16) of the Section C in the Annex of Directive 2014/59/EU), and the compatibility of this structure with the chosen resolution tool(s) (point (21) of the Section C in the Annex of Directive 2014/59/EU). Therefore, resolution authorities should consider how to best prepare for the AST given that many of the transfer perimeter components might not be within one legal entity or one business line, and should, when necessary and without prejudice to powers under article 17 of Directive 2014/59/EU, promote the separation of portfolios by:

• a. Requesting institutions to have playbooks (see para. 75) laying down how they could segregate distressed assets²⁰ in one business line or one legal entity when the AST is considered in the resolution strategy and when portfolios eligible to the AST are scattered around the group;
• b. Assessing how recovery options under point (14) of Section A in the Annex of of Directive 2014/59/EU could support the separation of distressed assets from the rest of the group.

²⁰ Distressed assets are to be understood, for these guidelines, as impaired or under-performing assets as mentioned in recital 59 of Directive 2014/59/EU.

1. Overview

1.1 References

1.2 Identified Requirements

1.3 Related Standards

2. Identified Requirements

3. Related Standards

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