30. Certain objective elements may negatively impact the institution’s operational capacity to …

Certain objective elements may negatively impact the institution’s operational capacity to provide banking and investment activities, even without infringing own funds and liquidity regulatory requirements. Such circumstances and events, when they are not contingent and cannot be removed in a timely and efficient way, should be considered in the assessment of whether the institution is failing or likely to fail. The indicators of the negative circumstances and events include among other things:

• a. the institution’s inability, due to persistent operational constraints, to any longer fulfil its obligations towards its creditors, in particular, the failure to any longer provide security for the assets entrusted to it by its depositors;
• b. the institution’s inability to make or receive payments and thereby to conduct its banking activities due to persistent operational constraints;
• c. the institution’s loss of market and depositors confidence due to operational risks, leading to a situation where the institution is no longer able to carry out its business activities (as evidenced by the unwillingness of its counterparties and other stakeholders to transact with or provide capital to the institution and, where relevant, by the intention of existing counterparties to terminate their contracts, including a bank run).

1. Forbhreathnú

1.1 Tagairtí

1.2 Ceanglais aitheanta

1.3 Caighdeáin ghaolmhara

2. Ceanglais aitheanta

3. Caighdeáin ghaolmhara

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