Authorities may write down or convert relevant capital instruments and eligible liabilities independently or with resolution action. Intra‑group holdings require coordination with parent undertakings so losses are borne by, and the entity recapitalised by, the resolution entity. Independent action is followed by a valuation under Article 74 and application of Article 75. Independent write‑down/conversion of eligible liabilities is limited to those meeting Article 45f(2)(a) (excluding the maturity condition in Article 72c(1)) and must respect Article 34(1)(g).

Member States must enable conversion into shares or ownership instruments and require prompt use where specified determinations occur, including under Articles 32, 32a or 33, non‑viability findings, joint or consolidating determinations, or need for extraordinary public financial support (excluding Article 32c). “No longer viable” requires both that the institution or group is failing or likely to fail and that no reasonable alternative would avert failure; groups may be failing where consolidated prudential requirements would be breached or losses deplete own funds. Subsidiary instruments must not be written down more harshly or on worse terms than equally ranked parent instruments, and authorities must notify, consult as required and obtain a valuation under Article 36 before action.