Recital 5

(5) In accordance with Article 72e(4), first subparagraph, of Regulation (EU) No 575/2013, it is possible for resolution authorities to permit a G-SII with an MPE resolution strategy to deduct certain holdings of own funds and eligible liabilities instruments of its subsidiaries that do not belong to the same resolution group by deducting a lower, adjusted amount specified by the resolution authority. Article 72e(4), second subparagraph, of that Regulation requires that in such cases the difference between the adjusted amount and the original amount be deducted from the loss absorbing and recapitalisation capacity of the subsidiaries concerned. In line with the TLAC standard, that approach should take into account the risk-based and non-risk-based requirements for own funds and eligible liabilities of the subsidiary concerned. Furthermore, that approach should be applicable to all third-country subsidiaries that are part of that G-SII, as long as those subsidiaries are subject to a resolution regime that, according to the relevant resolution authority in the Union, is legally enforceable and implements internationally agreed standards, more specifically the Financial Stability Board’s document ‘Key Attributes of Effective Resolution Regimes for Financial Institutions’, published in October 2011, and the TLAC standard.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-16 · Text as adopted (Official Journal); later amendments are not incorporated in this text.