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Article 11 - Implementing Regulation 710/2014

Article 11

Preparation of the draft liquidity joint decision

1.   The consolidating supervisor shall prepare a fully reasoned draft liquidity joint decision covering the group and the institutions of this group. The draft liquidity joint decision shall set out each of the following items:

(a)

the names of the consolidating supervisor and relevant competent authorities involved in the liquidity joint decision process;

(b)

the name of the group of institutions and a list of all institutions within the group to which the draft liquidity joint decision relates and applies;

(c)

the references to the applicable Union and national law relating to the preparation, finalisation and application of liquidity joint decisions;

(d)

the date of the draft liquidity joint decision and of any relevant update thereto;

(e)

the conclusion on the liquidity adequacy for the group at consolidated level;

(f)

the conclusion on the liquidity adequacy for each institution within the group at individual level;

(g)

the conclusion on measures taken to address any significant matters and material findings relating to liquidity supervision including relating to the adequacy of the organisation and the treatment of risks as required pursuant to Article 86 of Directive 2013/36/EU and relating to the need for specific liquidity requirements in accordance with Article 105 of that Directive for each institution within the group at individual level and for the group at consolidated level;

(h)

information on any other relevant prudential or macro-prudential requirements, guidelines, recommendations or warnings;

(i)

the reference date to which the conclusions referred to in point (e) to (g) relate;

(j)

the timeline for the implementation of the conclusion referred to in point (g), where applicable.

2.   The conclusion referred to in points (e) and (f) of paragraph 1 shall set out each of the following items:

(a)

the assessment of whether the institutions of the group have implemented robust strategies, policies, processes and systems for the identification, measurement, management and monitoring of liquidity risk over an appropriate set of time horizons;

(b)

the assessment of whether the liquidity held by the institutions of the group at individual level and the group at consolidated level provides sufficient coverage of liquidity risks;

(c)

the assessment of whether the institutions of the group have implemented appropriate arrangements, strategies, processes and mechanisms to comply with all requirements of Directive 2013/36/EU and Regulation (EU) No 575/2013.

3.   The conclusion referred to in point (g) of paragraph 1 shall provide details on the nature of the measures taken. Where these measures relate to the need for specific liquidity requirements in accordance with Article 105 of Directive 2013/36/EU, the conclusion shall provide details on the articulation of those specific liquidity requirements.

4.   The conclusions regarding each institution of the group at individual level and the group of institutions at consolidated level shall be clearly identifiable in the draft liquidity joint decision document.

5.   The consolidating supervisor shall provide the draft liquidity joint decision document to the relevant competent authorities in a timely manner and in any event by the deadline specified in the joint decision timetable pursuant to point (g) of Article 3(2).