Section 81ZBC(4)

For the purposes of Condition 3, a banking group company is failing or likely to fail if— it is contravening or likely to contravene a regulatory requirement where that contravention is serious in nature or directly related to a deterioration in the financial situation of the banking group company which threatens the viability of— the banking group company, or another undertaking in the same resolution group, it is failing, or is likely to fail, to meet the approval conditions set out in section 192R(3) to (6) of the Financial Services and Markets Act 2000 in circumstances where that failure— would justify the taking of measures in relation to the company by the PRA under section 192T(1) of that Act, and is serious in nature, the value of the assets of the banking group company is less than the amount of its liabilities, the banking group company is unable to pay its debts or other liabilities as they fall due, paragraph (c) or (d) (or both) will, in the near future, apply to the banking group company, or extraordinary public financial support is required in respect of the banking group company and subsection (5) does not apply to it.

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Source: legislation.gov.uk · retrieved 2026-09-04