1.   The competent authority of the home Member State and the relevant members of the college of supervisors shall exchange quantitative and qualitative information on any event of adverse material effect in the institution or its significant branches that could seriously affect the institution as referred to in Article 117(1), point (c), of Directive 2013/36/EU.

2.   In case of such an event of adverse material effect on the risk profile of the institution or its significant branches established in a Member State, competent authorities shall assess the consequences of such event on the institution and its significant branches and determine:

(a)	the nature and severity of the event;

(b)

the impact or potential impact of the event on the available own funds and liquidity level of the institution and its significant branches and whether the institution continues to comply with Regulation (EU) No 575/2013 or Directive 2013/36/EU in adverse macroeconomic, microeconomic, and geopolitical conditions;

(c)	the ability of the institution and its significant branches to operate in severe business disruption;

(d)	risk of cross-border contagion and the potential systemic impact.

3.   Upon being alerted of an event of adverse material effect on the risk profile by any member of the college of supervisors, or after having identified such event, the competent authority of the home Member State shall inform the members of the college of supervisors that supervise significant branches affected or likely to be affected by that event, and EBA. Observers, in particular the resolution authority of the home Member State, shall be informed if the information is relevant for the performance of their tasks.

4.   The competent authority of the home Member State and the members of the college of supervisors that supervise significant branches affected or likely to be affected by the event of adverse material effect shall monitor the situation and update the information referred to in paragraph 1, where applicable, immediately when relevant new information is available.

5.   Based on the outcome of the assessment of the event of adverse material effect referred to in paragraph 2 and the foreseen evolution of that event, the competent authority of the home Member State and the relevant members of the college of supervisors may coordinate the development of a coordinated supervisory response.