+Scenario C/E 4: Upstream contagion
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Scenario C/E 4: Upstream contagion
The control relationship between B and B1 does not automatically lead to including B in the group of connected clients of A, as financial problems for A are not likely to result in financial difficulties for B. However, the controlling entity B needs to be included in the group of A if B1 forms such an important part of group B that B is economically dependent on B1 . In this case, the financial difficulties of A will proceed not only downwards but also upwards to B, causing payment difficulties for B (i.e. all entities now form a single risk). Grouping requirement:
1. Przegląd
1.1 Odwołania
1.2 Zidentyfikowane wymagania
1.3 Powiązane normy
2. Zidentyfikowane wymagania
Wymagania
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Wymaganie |
3. Powiązane normy
- EBA - Published by the European Banking Authority at https://www.eba.europa.eu/
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