Article 178 › 3

For the purpose of point (a) of paragraph 1, elements to be taken as indications of unlikeliness to pay shall include the following: (a) the institution puts the credit obligation on non-accrued status; (b) the institution recognises a specific credit adjustment resulting from a significant perceived decline in credit quality subsequent to the institution taking on the exposure; (c) the institution sells the credit obligation at a material credit-related economic loss; (d) the institution consents to a distressed restructuring of the credit obligation where this is likely to result in a diminished financial obligation caused by the material forgiveness, or postponement, of principal, interest or, where relevant fees. This includes, in the case of equity exposures assessed under a PD/LGD Approach, distressed restructuring of the equity itself; (e) the institution has filed for the obligor's bankruptcy or a similar order in respect of an obligor's credit obligation to the institution, the parent undertaking or any of its subsidiaries; (f) the obligor has sought or has been placed in bankruptcy or similar protection where this would avoid or delay repayment of a credit obligation to the institution, the parent undertaking or any of its subsidiaries.

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Source: EUR-Lex CELLAR · retrieved 2026-09-04