14. In relation to the requirement to a parent undertaking to set up a parent financial holding …

In relation to the requirement to a parent undertaking to set up a parent financial holding company in a Member State or a Union parent financial holding company pursuant to point (h) of Article 17(5) of Directive 2014/59/EU, the following specifications apply:

• (a) Resolution authorities should consider applying this measure if they assess that it is not feasible or credible to resolve the EU part of a non-EU regulated bank due to the fact that there is no parent company subject to EU jurisdiction. In particular, resolution authorities should consider requiring setting up an EU intermediate financial holding company if the issuance of debt at this level is necessary to provide for an adequate amount and proper allocation of liabilities expected to contribute to loss absorption and recapitalisation, to facilitate the absorption of losses at the level of operating subsidiaries and to ensure the fungibility of liabilities expected to contribute to loss absorption and recapitalisation within the EU part of the group.
• (b) In addition, this measure may be applied where feasibility or credibility require the application of resolution tools at holding company level rather than to operating entities, in particular with regard to potential exclusions from the bail-in power. Resolution authorities should consider applying this measure together with restrictions on the operational activities of the financial holding company, if the operational activities at its level substantively impede the feasibility or credibility of the implementation of the resolution strategy. In particular, resolution authorities should consider setting appropriate limitations to prevent this financial holding company from performing critical functions or services to other group entities on which critical services performed by these entities depend. Where necessary, the parent holding company’s balance should contain only equity and liabilities expected to contribute to loss absorption and recapitalisation.
• (c) Where there is significant branch activity in the EU performing critical functions the continuance of which is not adequately provided for in the respective third country entity’s resolution plan, or from which results a significant risk of contagion, which is not adequately reflected in the third country entity’s resolution plan, resolution authorities should consider requiring to set up a subsidiary or capturing this under the financial holding company required pursuant to point (a).

1. Ülevaade

1.1 Viited

1.2 Tuvastatud nõuded

1.3 Seotud standardid

2. Tuvastatud nõuded

3. Seotud standardid

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