Section 34(2)

The circumstances referred to in paragraph (1) are— an institution does not meet the requirements set out in Directive 2013/36/EU UK law which implemented Articles 73 and 74 of the capital requirements directive or in Article 393 of the capital requirements regulation; risks or elements of risks are not covered by the own funds requirements set out in Directive 2013/36/EU UK law which implemented Chapter 4 of Title 7 of the capital requirements directive , the capital requirements regulation or CRR rules; the sole application of other administrative measures is unlikely to improve the institution's arrangements, processes, mechanisms and strategies sufficiently within an appropriate timeframe; either a SREP or an internal model review reveals that non-compliance with the requirements for the applicable internal approaches will likely lead to inadequate own funds requirements; the risks are likely to be underestimated despite compliance with the applicable requirements of Directive 2013/36/EU UK law , the capital requirements regulation or CRR rules ; or an institution reports to the competent authority in accordance with Article 377(5) of the capital requirements regulation that the stress test results referred to in that Article materially exceed its own funds requirement for the correlation trading portfolio.

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