Article 40(3)

The context for resolution action

1.

(1) In drawing up a group resolution plan the Bank must have regard to the different circumstances under which group entities may meet the conditions for resolution.

(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.

(3) In drawing up a group resolution plan the Bank must not assume that any group entity will be in receipt of -

(a) extraordinary public financial support other than financing arrangements made in accordance with section 228 or 229 of the Banking Act 2009;

(b) emergency liquidity assistance [For the meaning of "emergency liquidity assistance" see the recovery and resolution directive, Article 2.1, point (29).]; or