Where Member States permit use of deposit guarantee scheme (DGS) funds for preventive measures under Article 11(3), they shall ensure DGSs deploy available financial means only where all of the following conditions are met: (a) the credit institution’s financing request is accompanied by a note setting out measures referred to in Article 11b(1); (b) the institution has consulted the competent authority on that note and taken account of its comments; (c) the DGS support is linked to conditions on the supported institution, including more stringent risk monitoring, governance arrangements facilitating monitoring, enhanced verification rights for the DGS and more frequent reporting to competent authorities; (d) the use of measures is conditional on the institution securing effective access to covered deposits; (e) affiliated institutions can pay extraordinary contributions under Article 11(4); and (f) the institution complies with Directive obligations and any applicable repayment schedule or exit strategy under Article 11b(6) or Article 32c(2)(b) of Directive 2014/59/EU.

Member States must ensure DGSs maintain appropriate monitoring systems and decision-making procedures for selection, implementation and risk monitoring of preventive measures. DGSs may implement measures only once a designated authority confirms that paragraph 1 conditions are met and notifies the competent and resolution authorities. The EBA shall develop guidelines specifying the requirements in relation to paragraph 1(c), the monitoring and decision-making arrangements referred to in paragraph 2, taking into account IPS practices, and the detailed cooperation arrangements between resolution authorities, designated authorities and competent authorities, taking into account Article 11b.