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AI Summary of Article 11d Conditions for alternative measures

Member States shall ensure that where available financial means of a DGS are used for alternative measures under Article 11(5), the DGS may contribute the amount necessary to finance the transfer of non‑covered deposits and other ordinary unsecured liabilities and to ensure the capital neutrality of the recipient, in addition to amounts for covered deposits and assets, where the relevant national authority assesses that: (a) such transfers are strictly necessary and proportionate to avoid contagion, notably for eligible deposits of natural persons and micro, small and medium sized enterprises; (b) they would maximise value on sale or transfer, limiting economic value destruction and creditor losses; or (c) there is a need to preserve the whole client relationship to maintain confidence. DGSs must not finance transfers of own funds or liabilities ranking below ordinary unsecured liabilities under national insolvency law.

Where a DGS finances the transfer of assets and liabilities, including a deposit book transfer, the credit institution or relevant national authority must market, or arrange marketing of, the assets, rights and liabilities to be transferred. Marketing shall, without prejudice to the Union State aid framework: be open and transparent and not misrepresent the items to be transferred; neither favour nor discriminate between potential purchasers nor confer advantages; be free from conflicts of interest; take account of the need for a rapid solution in light of the deadline in Article 3(2) (second subparagraph) for the determination referred to in Article 2(1)(8)(a); and aim to maximise, as far as possible, the sale price for the assets, rights and liabilities concerned.

Version status: Inserted | Document consolidation status: Updated to reflect all known changes
Version date: 10 May 2026 - onwards
Version 2 of 2

Article 11d Conditions for alternative measures

1. Member States shall ensure that, where available financial means of a DGS are used for alternative measures as referred to in Article 11(5), the DGS may contribute the amount necessary to finance the transfer of non-covered deposits and other ordinary unsecured liabilities to a recipient and to ensure the capital neutrality of the recipient, in addition to the amount necessary for the transfer of covered deposits and assets of the credit institution concerned, where in the assessment of the relevant national authority:

(a) the transfer of deposits that are not covered or of ordinary unsecured liabilities is strictly necessary and proportionate to avoid contagion, in particular as regards eligible deposits held by natural persons and micro, small and medium sized enterprises;

(b) the transfer of deposits that are not covered and of ordinary unsecured liabilities would maximise the value upon sale or transfer to a new buyer, thereby limiting the destruction of economic value and reducing potential losses for creditors; or

(c) there is a need to preserve the whole relationship with clients in order to maintain confidence.

Member States shall ensure that DGSs do not finance the transfer of own funds and liabilities ranking below ordinary unsecured liabilities in their national laws governing normal insolvency proceedings.