(13)

the following Articles are inserted: ‘Article 11a Preventive measures 1. Where Member States allow the use of DGS funds for preventive measures, as referred to in Article 11(3), they shall ensure that DGSs use the available financial means for such preventive measures, provided that all of the following conditions are met: 2. Member States shall ensure that DGSs have monitoring systems and decision-making procedures in place that are appropriate for selecting and implementing preventive measures and monitoring affiliated risks. 3. Member States shall ensure that DGSs may implement preventive measures only where the designated authority has confirmed that all the conditions laid down in paragraph 1 have been met. The designated authority shall notify the competent authority and the resolution authority. 4. EBA shall develop guidelines to specify the following: Article 11b Requirements for preventive measures 1. Member States shall ensure that credit institutions which request a DGS to finance preventive measures pursuant to Article 11(3) present to the competent authority a note setting out the measures that those credit institutions commit to undertake in order to secure compliance with the applicable supervisory requirements in accordance with Directive 2013/36/EU and Regulation (EU) No 575/2013. 2. The note referred to in paragraph 1 shall set out actions to mitigate the risk of deterioration of the financial soundness of the credit institution and strengthen its capital and liquidity positions. 3. Where the financial means of a DGS are used for preventive measures pursuant to Article 11(3) of this Directive, such use shall be considered as a change of the financial situation of the credit institution and an update of the recovery plan shall be required pursuant to Article 5(2) of Directive 2014/59/EU. 4. Member States shall ensure that in the event of capital support measures, including recapitalisations, asset impairment measures and asset guarantees, the available financial means of a DGS cover only the capital shortfall as currently estimated on the basis of the following elements: The elements referred to in the first subparagraph, points (a) to (c), shall be included in the note referred to in paragraph 1. When determining the amount of capital support to be provided by the DGS, the DGS may also take into account any forward-looking capital adequacy assessment, including the capital conservation plan referred to in Article 142 of Directive 2013/36/EU. The DGS shall notify the competent authority of the amount of capital support to be provided. 5. Member States shall ensure that DGSs transfer their holdings of shares or other capital instruments in the supported credit institution as soon as commercial and financial circumstances allow. 6. Member States shall ensure that the note referred to in paragraph 1 provides for an exit strategy from the preventive measures, including a clearly specified schedule for the repayment by the credit institution of any repayable funds received as part of the preventive measures and divestment of the holding of the DGS concerned in that credit institution’s capital pursuant to paragraph 5. That information shall not be disclosed until after that credit institution exits the preventive measures, or until after the assessment referred to in Article 11c(3) has been completed, subject to non-delayable disclosure obligations referred to in Article 17 of Regulation (EU) No 596/2014 of the European Parliament and of the Council (*6). 7. Member States shall ensure that no dividends, share buy-backs or variable remuneration are paid out and no irrevocable commitment to pay out dividends, share buy-backs or variable remuneration is undertaken by the supported credit institution. The competent authority may exceptionally allow the payment of dividends where the credit institution demonstrates to the satisfaction of the competent authority that it is legally bound to pay out such dividends. Member States shall ensure that the prohibitions set out in this paragraph remain in place until after the credit institution exits the preventive measures. 8. Member States shall ensure that within six months of the provision of the initial financial support, the supported credit institution submits a business reorganisation plan to the competent authority. After the preventive measures have been granted, the competent authority may extend that period to a maximum period of eight months. Where the competent authority is not satisfied that the business reorganisation plan is credible or feasible, the further provision of funds by the DGS to the credit institution concerned shall be suspended. 9. Member States shall ensure that the measures envisaged in the business reorganisation plan referred to in paragraph 8 are compatible with the restructuring plan of the credit institution that may be required by the Commission, pursuant to the Union State aid framework. 10. The competent authority shall provide the business reorganisation plan referred to in paragraph 8 to the resolution authority. The resolution authority may examine the business reorganisation plan with a view to identifying any actions which might adversely impact the resolvability of the institution and may make recommendations to the competent authority with regard to those matters. The resolution authority shall communicate its assessment and recommendations within the timeframe set by the competent authority. Article 11c Remediation plan 1. Member States shall ensure that where a credit institution fails to fulfil the commitments outlined in the note referred to in Article 11b(1), or in the business reorganisation plan referred to in Article 11b(8) or fails to repay the amount contributed by the DGS under the preventive measures referred to in Article 11(3) at maturity or to comply with the exit strategy under Article 11b(6), the DGS informs the competent authority thereof without delay. 2. In the circumstances referred to in paragraph 1, Member States shall ensure that the competent authority requests the credit institution to submit a one-time remediation plan to the designated authority and the DGS describing the steps the credit institution will take to secure compliance with supervisory requirements, to ensure its long-term viability and to repay the due amount contributed by the DGS to the preventive measures, as well as the associated timeframe. The designated authority and the DGS shall consult the competent authority as regards the measures envisaged in the remediation plan. 3. Where the competent authority is not satisfied that the remediation plan is credible or feasible or where the credit institution fails to comply with the remediation plan, the competent authority shall inform the DGS and the resolution authority of its assessment. In that case, the DGS shall not grant any further preventive measures to that credit institution and the relevant authorities shall carry out an assessment of whether the institution is failing or is likely to fail in accordance with Article 32 of Directive 2014/59/EU. 4. By 11 May 2029, EBA shall issue guidelines setting out the elements to be included in the business reorganisation plan accompanying the preventive measures referred to in Article 11b(4) to (8) and in the remediation plan referred to in paragraph 1 of this Article. Article 11d Conditions for alternative measures 1. Member States shall ensure that, where available financial means of a DGS are used for alternative measures as referred to in Article 11(5), the DGS may contribute the amount necessary to finance the transfer of non-covered deposits and other ordinary unsecured liabilities to a recipient and to ensure the capital neutrality of the recipient, in addition to the amount necessary for the transfer of covered deposits and assets of the credit institution concerned, where in the assessment of the relevant national authority: Member States shall ensure that DGSs do not finance the transfer of own funds and liabilities ranking below ordinary unsecured liabilities in their national laws governing normal insolvency proceedings. 2. Member States shall ensure that when a DGS finances the transfer of assets and liabilities, including a deposit book transfer as referred to in Article 11(5), the credit institution concerned, or the relevant national authority, markets, or makes arrangements for the marketing of, the assets, rights and liabilities that credit institution intends to transfer. Without prejudice to the Union State aid framework, such marketing shall: Article 11e Least cost test Member States shall ensure that, where DGS funds are used for any measure referred to in Article 11(2), (3) or (5) of this Directive, the amount of the respective DGS intervention does not exceed the lesser of the following amounts: (*6) Regulation (EU) No 596/2014 of the European Parliament and of the Council of 16 April 2014 on market abuse (market abuse regulation) and repealing Directive 2003/6/EC of the European Parliament and of the Council and Commission Directives 2003/124/EC, 2003/125/EC and 2004/72/EC (OJ L 173, 12.6.2014, p. 1, ELI: http://data.europa.eu/eli/reg/2014/596/oj).’;" the request of a credit institution for the financing of such preventive measures is accompanied by a note setting out measures as referred to in Article 11b(1); the credit institution has consulted the competent authority on the measures set out in the note referred to in Article 11b(1) and has taken into account the competent authority’s comments on those measures; the use of preventive measures by the DGS is linked to conditions imposed on the supported credit institution, involving at least more stringent risk monitoring of the credit institution, accompanied by governance arrangements that facilitate such monitoring, greater verification rights for the DGS and more frequent reporting to the competent authorities; the use of the preventive measures by the DGS is conditional upon the credit institution’s obligation to secure effective access to covered deposits; the affiliated credit institutions are able to pay the extraordinary contributions in accordance with Article 11(4); the credit institution complies with its obligations under this Directive and the repayment schedule or exit strategy as referred to in Article 11b(6) of this Directive or in Article 32c(2), point (b), of Directive 2014/59/EU has been complied with in respect of any previous preventive measure or extraordinary public financial support. the conditions referred to in paragraph 1, point (c); the monitoring systems and decision-making procedures that DGSs are to have in place in accordance with paragraph 2, taking into account the practices of the IPSs referred to in Article 1(2), point (c); taking into account the requirements set out in Article 11b, the detailed arrangements of cooperation between the resolution authorities, the designated authorities and the competent authorities under paragraphs 1 and 3 of this Article. the capital shortfall identified in a Union or national stress test, asset quality review or equivalent exercise, or during the supervisory review and evaluation process, on-site inspections or temporary administration, or by an independent valuer; capital-raising measures to be implemented within six months of submission of the business reorganisation plan; safeguards preventing outflows of funds, including the measures referred to in paragraph 7. the transfer of deposits that are not covered or of ordinary unsecured liabilities is strictly necessary and proportionate to avoid contagion, in particular as regards eligible deposits held by natural persons and micro, small and medium sized enterprises; the transfer of deposits that are not covered and of ordinary unsecured liabilities would maximise the value upon sale or transfer to a new buyer, thereby limiting the destruction of economic value and reducing potential losses for creditors; or there is a need to preserve the whole relationship with clients in order to maintain confidence. be open and transparent and not misrepresent the assets, rights and liabilities that are to be transferred; not favour, or discriminate between, potential purchasers and not confer any advantages on a potential purchaser; be free from any conflict of interest; take account of the need to implement a rapid solution, taking into account the deadline laid down in Article 3(2), second subparagraph, for the determination referred to in Article 2(1), point (8)(a); and aim at maximising, as much as possible, the sale price for the assets, rights and liabilities concerned. the amount of covered deposits at the credit institution; or the amount resulting from the conditions for the application of the relevant measure laid down in Article 109 of Directive 2014/59/EU or in Article 11(3) or Article 11(5) of this Directive, respectively.

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Source: EUR-Lex (Cellar) · retrieved 2026-10-08 · Text as adopted (Official Journal); later amendments are not incorporated in this text.