553. When applying the SREP and these guidelines to cross-border groups, competent authorities should assess the viability of the group as a whole, as well as its individual entities. This can be done by dividing the process into two stages: (1) competent authorities make an initial assessment of entities under their direct supervision, and (2) competent authorities jointly discuss and finalise the assessment within the framework of colleges of supervisors pursuant to the requirements of Articles 113 and 116 of Directive 2013/36/EU.
554. In accordance with the scope of application of the guidelines as discussed in Title 1:
a. consolidating supervisors should perform the initial assessment of the parent undertaking and the group of institutions on a consolidated level; and
b. competent authorities should perform the initial assessment on the entities under their supervision (individual, or sub-consolidated, where relevant).
555. Where these guidelines are applied to the subsidiaries of
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