Scope and addressees

These Guidelines are addressed to the competent authorities, as defined in Article 4(2)(i) of Regulation (EU) No 1093/2010 establishing the EBA and to the resolution authorities, as defined in Article 4(2)(iv) of Regulation (EU) No 1093/201 when they assess whether an institution is failing or likely to fail, according to Article 32(1)(a) of Directive 2014/59/EU, or to Article 32(2) respectively.

The Guidelines also apply to institutions where they determine themselves to be failing or likely to fail, in accordance with Article 81(1) of Directive 2014/59/EU. In this respect, the parts of these Guidelines that make reference to the conditions for resolution set forth in Article 32(1)(b) and (c) of Directive 2014/59/EU do not apply to the institutions.

The scope of these Guidelines is expanded beyond the scope set forth by Article 32(4) of Directive 2014/59/EU, since Section 3 of Title III also covers the consultation and information exchange between the competent authority and the resolution authority for the purpose of making a determination that an institution is failing or likely to fail. Pursuant to Article 16 of Regulation (EU) No 1093/2010, the EBA may issue guidelines in order to establish consistent, efficient and effective supervisory practices within the European System of Financial Supervision. The additional guidance provided in Section 3 of Title III is limited to the information exchange between authorities established in the same jurisdiction and its provisions are without prejudice to any rules for exchanging information between authorities across jurisdictions. In Member States where the resolution authority is not empowered with determining that an institution is failing or likely to fail the provisions laid down in paragraphs 40-41 do not apply.