Article 37(2)

Impediments to the effectiveness of resolution action

1. A resolution plan must -

(a) identify and assess any material impediments to the effectiveness of the application of resolution tools or the exercise of resolution powers or the achievement of the resolution objectives; and

(b) unless the Bank determines that it is unnecessary or disproportionate, outline action that could be taken to address the impediments in accordance with Part 6.

The context for resolution action

2.

(1) In drawing up a resolution plan the Bank must have regard to the different circumstances under which the relevant institution may fail or be likely to fail.

(2) The circumstances to which the Bank must have regard include the following -

(a) that there is a situation of widespread financial instability or an occurrence of events which pose systemic risk; and

(b) that there is no such a situation or occurrence.