AI Summary of Article 88a Qualifying eligible liabilities instruments
This summary outlines the eligibility criteria for liabilities issued by a subsidiary in the Union, which are part of the same resolution group as a resolution entity. To qualify as consolidated eligible liabilities under Article 92a, these liabilities must comply with specific conditions laid out in Directive 2014/59/EU.
Key requirements include proper issuance in line with Article 45f(2)(a), acquisition by a non-group shareholder without jeopardising control, and adherence to maximum limits defined by subtracting certain liabilities from the total required amount. Meeting these conditions ensures compliance and reinforces regulatory stability.
Article 88a Qualifying eligible liabilities instruments
Liabilities issued by a subsidiary established in the Union that belongs to the same resolution group as the resolution entity shall qualify for inclusion in the consolidated eligible liabilities instruments of an institution subject to Article 92a, provided that all the following conditions are met:
(a) they are issued in accordance with point (a) of Article 45f(2) of Directive 2014/59/EU;
(b) they are bought by an existing shareholder that is not part of the same resolution group as long as the exercise of the write-down or conversion powers in accordance with Articles 59 to 62 of Directive 2014/59/EU does not affect the control of the subsidiary by the resolution entity;
(c) they do not exceed the amount determined by subtracting the amount referred to in point (i) from the amount referred to in point (ii):