S.L. 330.9 Art. 16Assessment of resolvability for groups.

(1) The Resolution Committee -

(a) where it is the group-level resolution authority, together with the European resolution authorities of subsidiaries; or

(b) where it is responsible for a subsidiary, together with the European resolution authority acting as the group-level resolution authority and the European resolution authorities of other subsidiaries, if any, after consulting the Authority and the European regulatory authorities in their capacity as either the consolidating supervisor, or where responsible for such subsidiaries, and the European resolution authorities of the jurisdictions in which significant branches are located insofar as is relevant to the significant branch, shall assess the extent to which groups are resolvable without the assumption of any of the following:

(i) extraordinary public financial support besides the use of the financing arrangements established in accordance with regulation 100;

(ii) central bank emergency liquidity assistance;

(iii) central bank liquidity assistance provided under non-standard collateralisation, tenor and interest rate terms:

Provided that, a group shall be deemed to be resolvable if it is feasible and credible for the Resolution Committee and the relevant European resolution authorities to either wind up group entities under normal insolvency proceedings or to resolve group entities by applying resolution tools and powers to resolution entities of that group while avoiding, to the maximum extent possible, any significant adverse consequences on the financial system, including in circumstances of broader financial instability or system wide events of Malta and, or of the Member States in which the other group entities or branches are situated, or other Member States or the European Union, with a view to ensuring the continuity of critical functions carried out by the group entities, where they can be easily separated in a timely manner or by other means. Where the Resolution Committee acts as the group-level resolution authority, it shall notify the EBA in a timely manner whenever a group is deemed not to be resolvable.

(2) For the purposes of the assessment of group resolvability, the Resolution Committee shall, as a minimum, examine the matters specified in Section C of the Schedule to these regulations: Provided that the assessment of group resolvability under this regulation shall be made at the same time as, and for the purposes of drawing up and updating of the group resolution plans in accordance with regulation 12. The assessment shall be made under the decision-making procedure laid down in regulation 13.

(3) Where a group is composed of more than one resolution group, the Resolution Committee shall, together with the authorities referred to in sub-regulation (1), assess the resolvability of each group in accordance with this regulation:

Provided that, the assessment referred to in this sub-regulation shall be performed in addition to the assessment of resolvability of the entire group and shall be made within the decision-making procedure laid down in regulation 13.