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Suppliment tal-Gazzetta tal-Gvern ta’ Malta Nru. 20,551, 8 ta’ Jannar , 2021
Taqsima  B
____________________________________________________________________B 13
L.N. 6 of 2021
MALTA FINANCIAL SERVICES AUTHORITY ACT
(CAP. 330)
Recovery and Resolution (Amendment) Regulations, 2021
IN EXERCISE of the powers conferred by article 20A and 20D
of the Malta Financial Services Authority Act, the Minister
responsible for the regulation of financial services, acting on theadvice of the Malta Financial Services Authority and the ResolutionAuthority, has made the following regulations:
Citation. 
S.L. 330.09.1. The title of these regulations  is the Recovery and
Resolution (Amendment) Regulations, 2021 and they shall be read and
construed as one with the Recovery and Resolution Regulations,hereinafter referred to as the " principal regulations.".
Amends 
regulation 2 of the principal 
regulations.2. Sub-regulation (1) of regulation 2 of the principal
regulations shall be amended as follows: 
(a) in the definition "aggregate amount" , the words
"eligible liabilities",  shall be substituted the words "bail-inable
liabilities"; 
(b) immediately after the definition "back-to-back
transaction" , there shall be added the following new definition: 
" "bail-inable liabilities" means the liabilities and
capital instruments that do not qualify as Common Equity
Tier 1, Additional Tier 1 or Tier 2 instruments of aninstitution or entity referred to in paragraphs (b), (c) and (d)
of the definition "entity" , that are not excluded from the
scope of the bail-in tool by virtue of regulation 44(2);";
(c) immediately after the definition "central
counterparty" , there shall be added the following new
definitions:
" "combined buffer requirement" shall have  the same
meaning as that assigned to it in point (6) of Article 128 of
the CRD; 
  "Common Equity Tier 1 capital" mean s Common
Equity Tier 1 capital as calculated in accordance withArticle 50 of the CRR;";
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(d) the definition "covered bond" shall be substituted by
the following: 
" "covered bond" means a covered bond as defined in
point (1) of Article 3 of Directive (EU) 2019/2162 of the
European Parliament and of the Council of 27 November
2019 on the issue of covered bonds and covered bond
public supervision  and amending Directives 2009/65/EC
and 2014/59/EU or, with regard to an instrument that is
issued before 8 July 2022, a bond as referred to in Article
52(4) of Directive 2009/65/EC of the European Parliament
and of the Council of 13 July 2009 on the coordination of
laws, regulations and administrative provisions relating to
undertakings for collective investment in transferable
securities (UCITS), as applicable on the date of its issue;"
(e) the definition "eligible liabilities" shall be substituted
by the following:
" "eligible liabilities" means bail-inable liabilities that
fulfil, as applicable, the conditions of regulation 45B or
paragraph (a) of regulation 45F(2) and Tier 2 instruments
that meet the conditions of point (b) of Article 72a(1) of the
CRR;";
 (f) immediately after the definition "financial
instrument" , there shall be added the following new definition: 
" "global systemically important institution" or "G-
SII" has the same meaning as that assigned to it in point
(133) of Article 4(1) of the CRR;"; 
 (g) immediately after the definition "investor" , there
shall be added the following new definition: 
" "material subsidiary" has the same meaning as that
assigned to it in point (135) of Article 4(1) of the CRR;";
(h) immediately after the definition "Resolution
Committee" , there shall be added the following new definitions: 
" "resolution entity" means either of the following: 
(a) a legal person established in the European
Union, that in accordance with regulation 12, is
identified by the Resolution Committee as an entity in
respect of which the resolution plan provides for
resolution action; or 
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(b) an institution that is not part of a group
that is subject to consolidated supervision pursuant to
Articles 111 and 112 of the CRD, in respect of which
the resolution plan drawn up pursuant to regulation
10 provides for resolution action;
"resolution group" means:
(a) a resolution entity and its subsidiaries that
are not: 
(i) resolution entities themselves; 
(ii) subsidiaries of other resolution
entities; or 
(iii) entities established in a third
country that are not included in the resolution
group in accordance with the resolution plan
and their subsidiaries; or 
(b) credit institutions permanently affiliated
to a central body and the central body itself when at
least one of those credit institutions or the central
body is a resolution entity, and their respective
subsidiaries;";
(i) immediately after the definition "significant branch" ,
there shall be added the following new definition: 
""subordinated eligible instruments" means
instruments that meet all the conditions referred to in
Article 72a of the CRR with the exception of paragraphs
(3) to (5) of Article 72b of the said Regulation;";
(j) the definition "subsidiary" shall be substituted by the
following: 
" "subsidiary" shall have the same meaning as that
assigned to it in point (16) of Article 4(1) of the CRR, and
for the purposes of applying regulations 7, 12, 17, 18, 45 to
45L, 59 to 62, 91 and 92 to resolution groups, includes,
where and as appropriate, credit institutions that are
permanently affiliated to a central body, by the central body
itself, and their respective subsidiaries, taking into account
the way in which the resolution groups mentioned above
comply with regulation 45E(3);".
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Amends 
regulation 10 of 
the principal 
regulations.3.Regulation 10 of the principal regulations shall be amended
as follows: 
(a) in sub-regulation (6) thereof, there shall be added the
following new proviso:
"Provided further that, the review referred to in this
sub-regulation shall be carried out after the implementation
of resolution actions or the exercise of powers referred to in
regulation 59."; 
(b) paragraph (o) of sub-regulation (7) thereof, shall be
substituted by the following: 
"(o) the requirements referred to in regulations 45E
and 45F and a deadline to reach that level in accordance
with regulation 45L;"; 
(c) paragraph (p) of sub-regulation (7) thereof, shall be
substituted by the following: 
"(p) where the Resolution Committee applies
regulation 45 B(4), (5) or (7), a timeline for compliance by
the resolution entity in accordance with regulation 45 L;";
 (d) in sub-paragraph (7) thereof, there shall be added the
following new proviso: 
"Provided that , when setting the deadlines referred to
in paragraphs (o) and (p) in the circumstances referred to in
the second proviso of sub-regulation 6, the Resolution
Committee shall take into account the deadline to comply
with the requirement referred to in article 104b of the
CRD.".
Amends 
regulation 12 of 
the principal 
regulations.4.Regulation 12 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof, shall be substituted by the
following: 
"(1) The Resolution Committee shall, in its capacity
as the group-level resolution authority, together with the
European resolution authorities of subsidiaries, or in its
capacity as the resolution authority of a subsidiary, together
with the European resolution authority acting as the group-
level resolution authority and the European resolution
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authorities of other subsidiaries, if any, and after consulting
the European resolution authorities of significant branches,
insofar as is relevant to the significant branch, draw up
group resolution plans. The group resolution plan shall
identify measures to be taken in respect of: 
(a) the Union parent undertaking;
(b) the subsidiaries that are part of the group
and that are established in the European Union;
 (c) the entities referred to in paragraphs (c)
and (d) of the definition "entity" in regulation 2(1);
and
 (d) subject to Title VI of the BRRD, the
subsidiaries that are part of the group and that are
established outside the European Union ;
Provided that, the resolution plan shall identify
for each group, the resolution entities and the resolution
groups.";
(b) paragraph (a) of sub-regulation (3) thereof, shall be
substituted by the following: 
"(a) set out the resolution actions that are to be taken
for resolution entities in the scenarios referred to in
regulation 10(3), and the implications of those resolution
actions in respect of other group entities referred to in
paragraphs (b), (c) and (d) of the definition "entity" in
regulation 2(1), the parent undertaking and subsidiary
institutions;";
(c) immediately after paragraph (a) of sub-regulation (3)
thereof, there shall be added the following new paragraph:
"(aa) where a group comprises more than one
resolution group, set out the resolution actions that are to be
taken from the resolution entities of each resolution group
and the implications of those actions on both the following:
(i) other group entities that belong to the
same resolution group; and
(ii) other resolution groups ;";
(d) paragraph (b) of sub-regulation (3) thereof, shall be
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substituted by the following: 
"(b) examine the extent to which the resolution tools
could be applied and the resolution powers exercised, with
respect to resolution entities established in the European
Union in a coordinated manner, including measures to
facilitate the purchase by a third party of the group as a
whole, of separate business lines or activities that are
provided by a number of group entities, or of particular
group entities or resolution groups, and identify any
potential impediments to a coordinated resolution;";
(e) paragraph (e) of sub-regulation (3) thereof, shall be
substituted by the following: 
"(e) set out any additional actions, not referred to in
these regulations, which the relevant European resolution
authorities intend to take in relation to the entities within
each resolution group;".
Amends 
regulation 13 of 
the principal 
regulations.5.Regulation 13 of the principal regulations shall be amended
as follows:
(a) the two provisos in sub-regulation (6) thereof, shall
be substituted by the following: 
"Provided that , the joint decision shall be made
within four months of the date of the transmission by the
group-level resolution authority of the information referred
to in sub-regulation (2) : 
Provided further that, the Resolution Committee may
also request the EBA to assist the authorities mentioned in
this sub-regulation in reaching a joint decision in
accordance with Article 31(c) of Regulation (EU) No 1093/
2010: 
Provided further that , where a group is composed of
more than one resolution group, the planning of the
resolution actions referred to in paragraph (aa) of
regulation 12(3) shall be included in a joint decision as
referred to in this sub-regulation.";  
(b) the introductory paragraph to sub-regulation (8)
thereof, shall be substituted by the following: 
"(8) Where the Resolution Committee is responsible
for a subsidiary, in the absence of a joint decision between
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the authorities mentioned in sub-regulation (6) within four
months, the Resolution Committee shall, if it disagrees
with the group resolution plan, make its own decision and,
where appropriate, identify the resolution entity and draw
up and maintain a resolution plan for the resolution group
composed of entities under its jurisdiction. When in
disagreement, the Resolution Committee, in its capacity as
the resolution authority responsible for the subsidiary, shall
substantiate its disagreement and shall provide full reasons
for each individual decision. It shall set out the reasons for
disagreeing with the proposed group resolution plan and
shall take into account the views and reservations of the
Authority and the other European regulatory authorities
and European resolution authorities. The Resolution
Committee shall notify its decision to the other members of
the resolution college:".
Amends 
regulation 16 
of the principal 
regulations.6.Regulation 16 of the principal regulations shall be amended
as follows:
(a) the proviso to sub-regulation (1) thereof, shall be
substituted by the following:
"Provided that , a group shall be deemed to be
resolvable if it is feasible and credible for the Resolution
Committee and the relevant European resolution authorities
to either wind up group entities under normal insolvency
proceedings or to resolve group entities by applying
resolution tools and powers to resolution entities of that
group while avoiding, to the maximum extent possible, any
significant adverse consequences on the financial system,
including in circumstances of broader financial instability
or system wide events of Malta and, or of the Member
States in which the other group entities or branches are
situated, or other Member States or the European Union ,
with a view to ensuring the continuity of critical functions
carried out by the group entities, where they can be easily
separated in a timely manner or by other means. Where the
Resolution Committee acts as the group-level resolution
authority, it shall notify the EBA in a timely manner
whenever a group is deemed not to be resolvable."; 
(b) immediately after the proviso of sub-regulation (2)
thereof, there shall be added the following new sub-regulation: 
"(3) Where a group is composed of more than one
resolution group, the Resolution Committee shall, together
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with the authorities referred to in sub-regulation (1), assess
the resolvability of each group in accordance with this
regulation : 
Provided that , the assessment referred to in this
sub-regulation shall be performed in addition to the
assessment of resolvability of the entire group and shall be
made within the decision-making procedure laid down in
regulation 13.".
Adds new 
regulation 16A 
to the principal 
regulations. 7.Immediately after regulation 16 of the principal regulations
there shall be added the following new regulation: 
"Power to 
prohibit certain 
distributions. 16A. (1) Where an entity meets the
combined buffer requirement when considered in
addition to each of the requirements referred to in
points (a), (b) and (c) of Article 141a(1) of the CRD,
but it fails to meet the combined buffer requirement
when considered in addition to the requirements
referred to in regulations 45 C and 45D , when
calculated in accordance with paragraph (a) of
regulation 45(2), the Resolution Committee shall
have the power, in accordance with sub-regulations
(2) and (3), to prohibit an entity from distributing
more than the Maximum Distributable Amount
related to the minimum requirement for own funds
and eligible liabilities, as calculated in accordance
with sub-regulation (4), through any of the
following actions: 
(a) make a distribution in connection
with Common Equity Tier 1 capital; 
(b) create an obligation to pay variable
remuneration or discretionary pension
benefits, or to pay variable remuneration if the
obligation to pay was created at a time when
the entity failed to meet the combined buffer
requirement; or 
(c) make payments on Additional Tier
1 instruments : 
Provided that, the entity shall
immediately notify the Resolution Committee
thereof.
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(2) In the instances referred to in sub-
regulation (1), the Resolution Committee, after
consulting the Authority, shall without unnecessary
delay assess whether to exercise the power referred
to in sub-regulation (1), taking into account all of
the following elements:
(a) the reason, duration and magnitude
of the failure and its impact on resolvability;
(b) the development of the entity’ s
financial situation and the likelihood of it
fulfilling, in the foreseeable future, the
condition referred to in paragraph (a) of
regulation 32(1); 
(c) the prospect that the entity will be
able to ensure compliance with the
requirements referred to in sub-regulation (1)
within a reasonable timeframe; 
(d) where the entity is unable to
replace liabilities that no longer meet the
eligibility or maturity criteria laid down in
Articles 72b and 72c of the CRR, or in
regulation s 45B or 45F(2), if that inability is
idiosyncratic or is due to market-wide
disturbance; 
(e) whether the exercise of the power
referred to in sub-regulation (1) is the most
adequate and proportionate means of
addressing the situation of the entity, taking
into account its potential impact on both the
financing conditions and resolvability of the
entity concerned. 
Provided that, the Resolution
Committee shall repeat its assessment of
whether to exercise the power referred to in
sub-regulation (1) at least every month for as
long as the entity continues to be in the
situation referred to in sub-regulation (1).
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(3) If the Resolution Committee finds that
the entity is still in the situation referred to in sub-
regulation (1) nine months after such situation has
been notified by the entity, the Resolution
Committee, after consulting the Authority, shall
exercise the power referred to in sub-regulation (1),
except where the Resolution Committee finds,
following an assessment, that at least two of the
following conditions are met: 
(a) the failure is due to a serious
disturbance to the functioning of financial
markets which leads to broad-based financial
market stress across several segments of
financial markets; 
(b) the disturbance referred to in
paragraph (a) not only results in the increased
price volatility of the own funds instruments
and eligible liabilities instruments of the entity
or increased costs for the entity, but also leads
to a full or partial closure of markets which
prevents the entity from issuing own funds
instruments and eligible liabilities instruments
on those markets; 
(c) the market closure referred to in
paragraph (b) is observed not only for the
concerned entity but also for several other
entities;
(d) the disturbance referred to in
paragraph (a) prevents the concerned entity
from issuing own funds instruments and
eligible liabilities instruments sufficient to
remedy the failure; or 
(e) an exercise of the power referred to
in sub-regulation (1) leads to negative spill-
over effects for part of the banking sector,
thereby potentially undermining financial
stability:
Provided that, where the exception
referred to in this sub-regulation applies, the
Resolution Committee shall notify the
Authority of its decision and shall explain its
assessment in writing: 
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Provided further that, every month,
the Resolution Committee shall repeat its
assessment of whether the said exception
applies. 
(4) The Maximum Distributable Amount
related to the minimum requirement for own funds
and eligible liabilities shall be calculated by
multiplying the sum calculated in accordance with
sub-regulation (5) by the factor determined in
accordance with sub-regulation (6). The Minimum
Distributable Amount related to the minimum
requirement for own funds of eligible liabilities
shall be reduced by any amount resulting from any
of the actions referred to in sub-regulation (1)(a),
(b) or (c).
(5) The sum to be multiplied in accordance
with sub-regulation (4) shall consist of: 
(a) any interim profits not included in
Common Equity Tier 1 capital pursuant to
Article 26(2) of the CRR, net of any
distribution of profits or any payment
resulting from the actions referred to in sub-
regulation (1)(a), (b) or (c); plus 
(b) any year-end profits not included
in Common Equity Tier 1 capital pursuant to
Article 26(2) of the CRR, net of any
distribution of profits or any payment
resulting from the actions referred to in sub-
regulation (1)(a), (b) or (c); minus 
(c) amounts which would be payable
by tax if the items specified in paragraphs (a)
and (b) were to be retained.
(6) The factor referred to in sub-regulation 4
shall be determined as follows: 
(a) where the Common Equity Tier 1
capital maintained by the entity which is not
used to meet any of the requirements set out in
Article 92a of the CRR and in regulations 45C
and 45D, expressed as a percentage of the
total risk exposure amount calculated in
accordance with Article 92(3) of the CRR, is
within the first (that is, the lowest) quartile of
the combined buffer requirement, the factor
shall be 0; 
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Amends 
regulation 17 of 
the principal 
regulations.8.Regulation 17 of the principal regulations shall be amended
as follows:
(a) sub-regulation (1) thereof , shall be substituted by the
following:
"(1) Where an assessment of resolvability for an(b) where the Common Equity Tier 1
capital maintained by the entity which is not
used to meet any of the requirements set out in
Article 92a of the CRR and in regulations 45C
and 45D, expressed as a percentage of the
total risk exposure amount calculated in
accordance with Article 92(3) of the CRR, is
within the second quartile of the combined
buffer requirement, the factor shall be 0,2; 
(c) where the Common Equity Tier 1
capital maintained by the entity which is not
used to meet the requirements set out in
Article 92a of the CRR and in regulations 45C
and 45D, expressed as a percentage of the
total risk exposure amount calculated in
accordance with Article 92(3) of the CRR, is
within the third quartile of the combined
buffer requirement, the factor shall be 0,4; 
(d) where the Common Equity Tier 1
capital maintained by the entity which is not
used to meet the requirements set out in
Article 92a of the CRR and in regulations 45C
and 45D, expressed as a percentage of the
total risk exposure amount calculated in
accordance with Article 92(3) of the CRR, is
within the fourth (that is, the highest) quartile
of the combined buffer requirement, the factor
shall be 0,6; 
The lower and upper bounds of each quartile
of the combined buffer requirement shall be
calculated as follows: 
Lower bound of quartile = Combined buffer requirement    x (Q n - 1)
                              4
Upper bound of quartile =   Combined buffer requirement    x Q n
                              4
where "Q n" refers to the ordinal number of the quartile concerned.".
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entity is carried out in accordance with regulations 15 and
16, and where the Resolution Committee, after consulting
the Authority, determines that there are substantive
impediments to the resolvability of that entity, the
Resolution Committee shall notify in writing such
determination to the entity concerned, to the Authority and
to the European resolution authorities of the jurisdictions in
which significant branches are located."; 
(b) sub-regulations (3) and (4) thereof , shall be
substituted by the following: 
"(3) Within four months of the date of receipt of a
notification made in accordance with sub-regulation (1),
the entity shall propose to the Resolution Committee
possible measures to address or remove the substantive
impediments identified in the said notification. 
Provided that , the entity shall within two weeks
of the date of receipt of a notification made in accordance
with sub-regulation (1), propose to the Resolution
Committee possible measures and the timeline for their
implementation to ensure that the entity complies with
regulations 45E or 45F and the combined buffer
requirement, where a substantive impediment to
resolvability is due to either of the following situations: 
(a) the entity meets the combined buffer
requirement when considered in addition to each of
the requirements referred to in points (a), (b) and (c)
of Article 141a(1) of the CRD, but it does not meet
the combined buffer requirement when considered in
addition to the requirements referred to in regulations
45C and 45D when calculated in accordance with
paragraph (a) of regulation 45(2); or 
(b) the entity does not meet the requirements
referred to in Articles 92a and 494 of the CRR or the
requirements referred to in regulations 45C and 45D :
Provided further that, the timeline for the
implementation of measures proposed under
paragraph (b) of the first proviso hereof shall take
into account the reasons for the substantive
impediment:
Provided further that , the Resolution
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Committee shall, after consulting the Authority,
assess whether the measures proposed under
paragraphs (a) and (b) of the first proviso hereof
effectively address or remove the substantive
impediment in question.
(4) Where the Resolution Committee finds that the
measures proposed by an entity in accordance with sub-
regulation (3) do not effectively reduce or remove the
impediments in question, it shall either directly or
indirectly through the Authority, require the entity to take
alternative measures that may achieve that objective, and
notify in writing those measures to the said entity, which
shall propose within one month a plan to comply with
them:
Provided that , in identifying alternative
measures, the Resolution Committee shall demonstrate
how the measures proposed by the entity would not be able
to remove the impediments to resolvability and how the
alternative measures proposed are proportionate in
removing them. The Resolution Committee shall take into
account the threat that those impediments to resolvability
present for financial stability and the effect of the measures
on the business of the entity, its stability and its ability to
contribute to the economy.";
(c) in paragraphs (a), (b), (d), (e), (g) and (h) of sub-
regulation (5) thereof, the word "institution" , wherever it occurs,
shall be substituted by the word "entity"; 
(d) immediately after paragraph (h) of sub-regulation (5)
thereof, there shall be added the following new paragraph:
"(ha) require an institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) to submit a plan to restore compliance with
the requirements of regulations 45E or 45F, expressed as a
percentage of the total risk exposure amount calculated in
accordance with Article 92(3) of the CRR and, where
applicable, with the combined buffer requirement and with
the requirements referred to in regulations 45E or 45F,
expressed as a percentage of the total exposure measure
referred to in Articles 429 and 429a of the CRR;";
(e) paragraphs (i), (j) and (k) of sub-regulation (5)
thereof, shall be substituted by the following: 
VERŻJONI ELETTRONIKA
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"(i) require an institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) to issue eligible liabilities to meet the
requirements of regulations 45E or 45F; 
(j) require an institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1), to take other steps to meet the minimum
requirement for own funds and eligible liabilities under
regulations 45E or 45F, including in particular to attempt to
renegotiate any eligible liability, additional Tier 1 or Tier 2
instrument s it has issued, with a view to ensuring that any
decision of the Resolution Committee to write down or
convert that liability or instrument would be effected under
the law of the jurisdiction governing that liability or
instrument; 
(k) where an entity is the subsidiary of a mixed-
activity holding company, requiring that the mixed-activity
holding company set up a separate financial holding
company to control the entity, if necessary in order to
facilitate the resolution of the entity and to avoid the
application of the resolution tools and the exercise of the
powers referred to in regulations 31 to 86 , both inclusive ,
having an adverse effect on the non-financial part of the
group.";
(f) immediately after paragraph (j) of sub-
regulation 5 thereof, there shall be added the following new
paragraph:
(ja) for the purpose of ensuring ongoing
compliance with regulations 45E or 45F, require an
institution or entity referred to in paragraphs (b), (c)
or (d) of the definition "entity" in regulation 2(1), to
change the maturity profile of: 
(i) own funds instruments, after having
obtained the consent of the Authority, and 
(ii) eligible liabilities referred to in
regulation 45B and in paragraph (a) of
regulation 45F(2);
(g) sub-regulation (7) thereof, shall be substituted
by the following: 
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"(7) Before identifying any measure referred
to in sub-regulation (4), the Resolution Committee,
after consulting the Authority and, if appropriate, the
Central Bank, shall duly consider the potential effect
of those measures on the particular entity, on the
internal market for financial services, and on the
financial stability in other Member States and in the
Union as a whole.".
Amends 
regulation 18 of 
the principal 
regulations.9.Sub-regulations (1) to (7) of regulation 18 of the principal
regulations shall be substituted by the following: 
"(1) The Resolution Committee shall :–
(a) where it is the group-level resolution authority,
together with the European resolution authorities of
subsidiaries; or 
(b) where it is responsible for a subsidiary, together
with the European resolution authority acting as the group-
level resolution authority and the European resolution
authorities of other subsidiaries, if any, 
after consulting the supervisory college and the European
resolution authorities of the jurisdictions in which significant
branches are located insofar as is relevant to the significant branch,
consider the assessment required by regulation 16 within the
resolution college and shall take all reasonable steps to reach a joint
decision on the application of measures identified in accordance
with regulation 17(4) in relation to all resolution entities and their
subsidiaries that are entities as referred to in the definition of
"entity" under regulation 2(1) and are part of the group.
(2) The Resolution Committee shall, in its capacity as the
group-level resolution authority, in cooperation with the
consolidating supervisor and the EBA in accordance with Article
25(1) of Regulation (EU) No 1093/2010, prepare and submit a
report to the Union parent undertaking, to the European
resolution authorities of subsidiaries, which will provide it to the
subsidiaries within their remit, and to the European resolution
authorities of jurisdictions in which significant branches are
located. The report shall be prepared after consulting the
Authority and the relevant European regulatory authorities, and
shall analyse the substantive impediments to the effective
application of the resolution tools and the exercising of the
resolution powers in relation to the group and in relation to
resolution groups where a group is composed of more than one
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resolution group. The report shall consider the impact on the
group’s business model and recommend any proportionate and
targeted measures that, in the Resolution Committee’s view, in
its capacity as the group-level resolution authority, are necessary
or appropriate to remove those impediments :
Provided that , where an impediment to the
resolvability of the group is due to a situation of a group entity
referred to in the proviso of regulation 17(3), the Resolution
Committee shall, in its capacity as the group-level resolution
authority, notify its assessment of the said impediment to the
Union parent undertaking , after consulting the European
resolution authorities of the resolution entity and of its
subsidiary institutions.
(3) Where the Resolution Committee is responsible for a
subsidiary, it shall, after receiving a report from the European
resolution authority acting as the group-level resolution authority
in accordance with Article 18(2) of the BRRD, provide such a
report to the subsidiary under its supervision.
(4) Within four months of the date of receipt of the report
referred to in sub-regulation (2), the Union parent undertaking
may submit observations and propose to the Resolution
Committee in its capacity as the group-level resolution authority
alternative measures to remedy the impediments identified in the
report: 
Provided that , where the impediments identified in
the report are due to a situation of a group entity referred to in
the first proviso of regulation 17(3), the Union parent
undertaking shall, within two weeks of the date of receipt of a
notification made in accordance with the proviso of sub-
regulation (2), propose to the Resolution Committee, in its
capacity as the group-level resolution authority possible
measures and the timeline for their implementation to ensure that
the group entity complies with the requirements referred to in
regulations 45E or 45F expressed as a percentage of the total risk
exposure amount calculated in accordance with Article 92(3) of
the CRR and, where applicable, with the combined buffer
requirement, and with the requirements referred to in the said
regulations  45E and 45F expressed as a percentage of the total
exposure measure referred to in Articles 429 and 429a of the
CRR: 
Provided further that, the timeline for the
implementation of the measures proposed the first proviso shall
VERŻJONI ELETTRONIKA
B 30
take into account the reasons for the substantive impediment.
The Resolution Committee shall, after consulting the Authority,
assess whether those measures effectively address or remove the
substantive impediment.
Provided further that, the Resolution Committee
shall, in its capacity as the group-level resolution authority,
communicate any measure proposed by the Union parent
undertaking to the consolidating supervisor, the EBA, the
European resolution authorities of the subsidiaries and the
European resolution authorities of the jurisdictions in which
significant branches are located insofar as is relevant to the
significant branch.
(5)The Resolution Committee shall :–
(a) where it is the group-level resolution authority,
together with the European resolution authorities of the
subsidiaries; or
(b) where it is responsible for a subsidiary, together
with the European resolution authority acting as the group-
level resolution authority and the European resolution
authorities responsible for the other subsidiaries, if any, 
after consulting the Authority and the European regulatory
and resolution authorities of jurisdictions in which significant
branches are located, do everything within their power to reach a joint
decision within the resolution college regarding the identification of
the substantive impediments, and if necessary, the assessment of the
measures proposed by the Union parent undertaking and the measures
required by the authorities in order to address or remove the
impediments, which shall take into account the potential impact of the
measures in Malta and in all the Member States where the group
operates:
Provided that, the joint decision shall be reached within
four months of submission of any observations by the Union parent
undertaking. Where the Union parent undertaking has not submitted
any observations, the joint decision shall be reached within one month
from the expiry of the four-month period referred to in sub-regulation
(4): 
Provided further that, the joint decision concerning the
impediment to resolvability due to a situation referred to in the first
proviso of sub-regulation 17(3), shall be reached within two weeks of
the submission of any observations by the Union parent undertaking in
VERŻJONI ELETTRONIKA
B 31
accordance with sub-regulation (3):  
Provided further that, the joint decision shall be reasoned
and set out in a document which, where the Resolution Committee is
the group-level resolution authority, shall be provided by the
Resolution Committee to the Union parent undertaking: 
Provided further that, the Resolution Committee may
request the EBA to assist the authorities referred to in this sub-
regulation in reaching a joint decision in accordance with point (c) of
the second paragraph of Article 31 of Regulation (EU) No 1093/2010.
(6) Where the Resolution Committee is the group-level
resolution authority, in the absence of a joint decision within the period
referred to in the first proviso to sub-regulation (5), the Resolution
Committee shall make its own decision on the appropriate measures to
be taken in accordance with regulation 17(4) at the group level. The
decision shall be fully reasoned, shall take into account the views and
reservations of European resolution authorities and shall be provided
to the Union parent undertaking by the Resolution Committee in its
capacity as the group-level resolution authority:
Provided that , if at the end of the relevant period
referred to in sub-regulation (5), any of the resolution authorities
mentioned in the said sub-regulation (5) have referred a matter
mentioned in sub-regulation (9) to the EBA in accordance with
Article 19 of Regulation (EU) No 1093/2010, the Resolution
Committee shall, in its capacity as the group-level resolution
authority, defer its decision and await any decision that the EBA
may take in accordance with Article 19(3) of the said Regulation,
and shall take its decision in accordance with the decision of the
EBA. The relevant period referred to in sub-regulation (5) shall
be deemed to be the conciliation period within the meaning of
the said Regulation. The matter shall not be referred to the EBA
after the end of the relevant period referred to in sub-regulation
(5) or after a joint decision has been reached. In the absence of
an EBA decision, the decision of the Resolution Committee in its
capacity as the group-level resolution authority shall apply.
(6A)In the absence of a joint decision within the relevant
period referred to in sub-regulation (5), the Resolution
Committee, where it is the relevant resolution authority, shall
make its own decision on the appropriate measures to be taken in
accordance with sub-regulation 17(4) at the resolution group-
level: 
Provided that, the decision referred to in this sub-
VERŻJONI ELETTRONIKA
B 32
regulation shall be fully reasoned and shall take into account the
views and reservations of the European resolution authorities of
other entities of the same resolution group and of the Resolution
Committee in its capacity as the group-level resolution authority.
The decision shall be provided to the resolution entity by the
Resolution Committee : 
Provided further that, if, at the end of the relevant
period referred to in sub-regulation (5), any of the resolution
authorities mentioned in the said sub-regulation (5) have referred
a matter mentioned in sub-regulation (9) to EBA in accordance
with Article 19 of Regulation (EU) No 1093/2010, the
Resolution Committee responsible for the resolution entity shall
defer its decision and await any decision that EBA may take in
accordance with Article 19(3) of the said Regulation, and shall
take its decision in accordance with the decision of EBA. The
relevant period referred to in sub-regulation (5) shall be deemed
to be the conciliation period within the meaning of the said
Regulation. EBA shall take its decision within one month. The
matter shall not be referred to EBA after the end of the relevant
period referred to in sub-regulation (5) or after a joint decision
has been reached. In the absence of an EBA decision, the
decision of the Resolution Committee shall apply.
(7) Where the Resolution Committee is responsible for a
subsidiary that is not a resolution entity, in the absence of a joint
decision, the Resolution Committee shall take a decision on the
appropriate measures to be taken by subsidiaries at individual
level in accordance with regulation 17(4). The decision shall be
fully reasoned and shall take into account the views and
reservations of the other European resolution authorities. The
decision shall be provided to the subsidiary concerned and to the
resolution entity of the same resolution group, to the European
resolution authority of the said resolution entity and where
different, to the European resolution authority acting as the
group-level resolution authority:
Provided that, if at the end of the relevant period
referred to in sub-regulation (5), any of the resolution authorities
mentioned in the said sub-regulation (5) have referred a matter
mentioned in sub-regulation (9) to the EBA in accordance with
Article 19 of Regulation (EU) No 1093/2010, the Resolution
Committee responsible for the subsidiary shall defer its decision
and await any decision that the EBA may take in accordance
with Article 19(3) of the said Regulation, and shall take its
decision in accordance with the decision of the EBA. The
relevant period referred to in sub-regulation (5) shall be deemed
VERŻJONI ELETTRONIKA
B 33
to be the conciliation period within the meaning of the said
Regulation. EBA shall take its decision within one month. The
matter shall not be referred to the EBA after the end of the
relevant period referred to in sub-regulation (5) or after a joint
decision has been reached. In the absence of an EBA decision,
the decision of the Resolution Committee shall apply."
Amends 
regulation 32 of 
the principal 
regulations.10.In paragraph (b) of sub-regulation (1) of regulation 32 of
the principal regulations , the words "conversion of relevant capital
instruments in accordance with regulation 59(2)" , shall be substituted
by the words "conversion of relevant capital instruments and eligible
liabilities in accordance with regulation 59(2)"; 
Adds new 
regulations 32A 
and 32B to the 
principal 
regulations.11.Immediately after regulation 32 of the principal regulations
there shall be added the following new regulations:
Amends 
regulation 33 of 
the principal 
regulations.12.Sub-regulations (2) to (4) of regulation 33 of the principal
regulations shall be substituted by the following:
"(2) The Resolution Committee shall take a resolution
action in relation to an entity referred to in paragraphs (c) or (d)
of the definition "entity" in regulation 2(1), when the conditions
laid down in regulation 32(1) are met by the entity mentioned
above.
(3) Where the subsidiary institutions of a mixed-activity
holding company are held directly or indirectly by an
intermediate financial holding company:
(a) the resolution plan shall provide that the
intermediate financial holding company is identified as a "Conditions for 
resolution with regard 
to a central body and 
credit institutions 
permanently affiliated 
to a central body.32A. When a resolution group complies as a
whole with the conditions established in regulation
32(1), the Resolution Committee may take a
resolution action in relation to a central body and all
credit institutions permanently affiliated to it that
are part of that same resolution group.
Insolvency proceedings 
in respect of 
institutions and entities 
that are not subject to 
resolution action.32B. Where an institution or entity referred to
in paragraphs (b), (c) or (d) of the definition "entity"
in regulation 2(1) , in relation to which the
Resolution Committee considers that the conditions
in paragraphs (a) and (b) of regulation 32(1) are
met, but that a resolution action would not be in the
public interest in accordance with paragraph (c) of
regulation 32(1), the said institution or entity shall
be wound up in an orderly manner in accordance
with Maltese law.".
VERŻJONI ELETTRONIKA
B 34
resolution entity ; and 
(b) resolution actions for the purposes of group
resolution shall be taken in relation to the intermediate
financial holding company : 
Provided that , the Resolution Committee shall
not take resolution actions for the purposes of group
resolution in relation to the mixed-activity holding
company.  
(4) Subject to sub-regulation (3) and notwithstanding the
fact that an entity referred to in paragraphs (c) or (d) of the
definition "entity" in regulation 2(1) does not meet the
conditions laid down in regulation 32(1), the Resolution
Committee may take a resolution action with regard to such an
entity where all of the following conditions are fulfilled: 
(a) such an entity is a resolution entity; 
(b) one or more of the subsidiaries of the entity that
are institutions, but not resolution entities, comply with the
conditions laid down in regulation 32(1); and
(c) assets and liabilities of the subsidiaries referred
to in paragraph (b) are such that the failure of those
subsidiaries threatens the resolution group as a whole, and
resolution action with regard to the entity is necessary
either for the resolution of such subsidiaries which are
institutions or for the resolution of the relevant resolution
group as a whole.";
Adds new 
regulation 33B 
to the principal 
regulation s.13.Immediately after regulation 33A of the principal
regulations there shall be added the following new regulation:
"Power to 
suspend certain 
obligations.33B. (1)  The Resolution Committee shall, after
consulting the Authority, which shall reply in a timely
manner, have the power to suspend any payment or
obligations pursuant to any contract to which an
institution or entity referred to in paragraphs (b), (c) or
(d) of the definition "entity" in regulation 2(1) is a party,
where all of the following conditions are met: 
(a) a determination that the institution or
entity is failing or likely to fail has been made
under paragraph (a) of regulation 32(1); 
VERŻJONI ELETTRONIKA
B 35
(b) there is no immediately available
private sector measure referred to in paragraph (b)
of regulation 32(1) that would prevent the failure of
the institution or entity;
(c) the exercise of the power to suspend is
deemed necessary to avoid the further deterioration
of the financial conditions of the institution or
entity; and
(d) the exercise of the power to suspend is
either:
(i) necessary to reach the
determination provided for in paragraph (c) of
regulation 32(1); or 
(ii) necessary to choose the
appropriate resolution actions or to ensure the
effective application of one or more
resolution tools.
(2) The power referred to in sub-regulation (1)
shall not apply to payment or delivery obligations  to the
following: 
(a) systems and operators of systems
designated in accordance with Directive 98/26/EC; 
(b) central counterparties authorised in the
Union pursuant to Article 14 of Regulation (EU)
No 648/2012 and third-country central
counterparties recognised by ESMA pursuant to
Article 25 of the said Regulation; 
(c) the Central Banks .
Provided that, the Resolution Committee shall
set the scope of the power referred to in sub-regulation
(1), having regard to the circumstances of each case and
shall carefully assess the appropriateness of extending
the suspension to eligible deposits in accordance with
point (4) of Article 2(1) of Directive 2014/49/EU, in
particular, covered deposits held by natural persons and
micro, small and medium-sized enterprises. 
(3) The Resolution Committee shall, when
exercising the power to suspend payment or delivery
obligation under sub-regulation (1) in respect of eligible
deposits, ensure that depositors have access to an
appropriate daily amount from those deposits. 
VERŻJONI ELETTRONIKA
B 36
(4) The period of the suspension pursuant to sub-
regulation (1) shall be as short as possible and shall not
exceed the minimum period of time that the Resolution
Committee considers necessary for the purposes
indicated in paragraphs (c) and (d) of sub-regulation (1) ,
and in any event shall not last longer than the period from
the publication of a notice of suspension pursuant to sub-
regulation (8) to midnight at the end of the business day
following the day of the publication.
Provided that, at the expiry of the period of
suspension referred to in this sub-regulation, the
suspension shall cease to have effect.
(5) In exercising the power referred to in sub-
regulation (1), the Resolution Committee shall have
regard to the impact the exercise of that power might
have on the orderly functioning of financial markets and
shall consider the existing national rules, as well as
supervisory and judicial powers, to safeguard creditors’
rights and equal treatment of creditors in normal
insolvency proceedings. The Resolution Committee shall
have regard to the potential application of national
insolvency proceedings to the institution or entity as a
result of the determination in paragraph (c) of regulation
32(1) and shall make arrangements that the Resolution
Committee deems appropriate to ensure adequate
coordination with the relevant national, administrative
and, or judicial authorities.
(6) Where the obligations of payment or delivery
under a contract are suspended pursuant to sub-
regulation (1), the obligations of payment or delivery of
any counterparty to the said contract shall be suspended
for the same period of time.
(7) Obligations of payment or delivery which
would have been due during the period of suspension
shall be due immediately upon the expiry of the period of
suspension. 
(8) The Resolution Committee shall, without
delay, notify the institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , and the authorities refer to  paragraphs
(a) to (h) of regulation 83(2) when exercising the power
referred to in sub-regulation (1) , after a determination
has been made that the institution is failing , or likely to
fail, pursuant to paragraph (a) of regulation 32(1) and
before the resolution decision is taken. 
VERŻJONI ELETTRONIKA
B 37
Provided that, the Resolution Committee shall
publish or ensure the publication of the order or
instrument by which payment or delivery obligations are
suspended under this regulation and the terms and period
of suspension, by the means referred to in regulation
83(4).
(9) This regulation is without prejudice to
Maltese Law granting powers to suspend payment or
delivery obligations of the institutions or entities referred
to in sub-regulation (1) , before a determination is made
that those institutions or entities are failing or likely to
fail under paragraph (a) of regulation 32(1) , or to
suspend payment or delivery obligations of institutions
or entities which are to be wound up under normal
insolvency proceedings and that exceed the scope,
duration and conditions provided for in this regulation. 
Provided that, the conditions provided for
under this regulation shall be without prejudice to the
conditions related to the power of the Resolution
Committee to suspend the obligations of payment or
delivery under any other law. 
(10) Where the Resolution Committee exercises
the power to suspend payment or delivery obligations
with respect to an institution or an entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) in accordance with sub-regulation (1), the
Resolution Committee may, for the duration of the
suspension, exercise the power to: 
(a) restrict secured creditors of an
institution or an entity referred to in paragraphs (b),
(c) or (d) of the definition "entity" in regulation
2(1), from enforcing security interests in relation to
any of the assets of the said institution or entity for
the same duration, in which case regulation 70(2),
(3) and (4) shall apply; and 
(b) suspend the termination rights of any
party to a contract with that institution or entity for
the same duration, in which case regulation 71(2)
to (8) shall apply. 
VERŻJONI ELETTRONIKA
B 38
Amends 
regulation 36 of 
the principal 
regulations.14.Regulation 36 of the principal regulations shall be amended
as follows:
(a)in sub-regulation (1) thereof, immediately after the
words "convert relevant capital instruments ,", there shall be
added the words "and eligible liabilities in accordance with
regulation 59 ,"; 
(b)in paragraph (a) of sub-regulation (4) thereof,
immediately after the words "conversation of capital
instruments", there shall be added the words "and eligible
liabilities in accordance with regulation 59";  
(c) paragraph (c) of sub-regulation (4) thereof , shall be
substituted by the following:
"(c) when the power to write down or convert
relevant capital instruments and eligible liabilities in
accordance with regulation 59 is applied, to inform the
decision on the extent of the cancellation or dilution of
shares or other instruments of ownership, and the extent of
the write-down  or conversion of relevant capital
instruments and eligible liabilities in accordance with
regulation 59;";
(d) in paragraph (d) of sub-regulation (4) thereof, the
words "conversion of eligible liabilities;", shall be substituted by
the words "conversion of bail-inable liabilities;";
(e) in paragraph (g) of sub-regulation (4) thereof,
immediately after the words "convert relevant capital
instruments", there shall be added the words "and eligible
liabilities in accordance with regulation 59";
(f) in sub-regulation (5) thereof, immediately after the
words "convert relevant capital instruments", there shall be
added the words "and eligible liabilities in accordance with(11) Where the Resolution Committee has
exercised the power to suspend payment or delivery
obligations in instances set out in sub-regulations (1) to
(10), after making a determination that an institution or
entity is failing or likely to fail pursuant to paragraph (a)
of article 32(1) , and if resolution action is subsequently
taken with respect to the relevant institution or entity, the
Resolution Committee shall not exercise its powers
under regulation 69(1), 70(1) or 71(1) with respect to th e
said relevant institution or entity.". 
VERŻJONI ELETTRONIKA
B 39
regulation 59"; 
(g) in sub-regulation (12) thereof, immediately after the
words "conversion power of capital instruments", there shall be
added the words "and eligible liabilities in accordance with
regulation 59."; and
(h) in sub-regulation (13) thereof, immediately after the
words "conversion power of capital instruments", there shall be
added the words "and eligible liabilities in accordance with
regulation 59.". 
Amends 
regulation 37 
of the principal 
regulations.15.Regulation 37 of the principal regulations shall be amended
as follows:
(a)in sub-regulation (2) thereof, immediately after the
words "convert capital instruments", there shall be added the
words "and eligible liabilities"; and
(b) in paragraph (a) of sub-regulation (10) thereof, the
words "and other eligible liabilities;", shall be substituted by the
words "and other bail-inable liabilities;".
Amends 
regulation 44 of 
the principal 
regulations.16.Regulation 44 of the principal regulations shall be amended
as follows:
(a) paragraph (f) of sub-regulation (2) thereof , shall be
substituted by the following: 
"(f) liabilities with a remaining maturity of less than
seven days, owed to systems or operators of systems
designated in accordance with Directive 98/26/EC or to
their participants and arising from the participation in such
a system, or to central counterparties authorised in another
Member State pursuant to Article 14 of Regulation (EU)
No 648/2012 and third-country central counterparties
recognised by ESMA pursuant to Article 25 of the said
Regulation ;";
(b) immediately after paragraph (g) of sub-regulation (2)
thereof, there shall be added the following new paragraph: 
Cap. 371."(h) liabilities to institutions or entities referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) that are part of the same resolution group
without being themselves resolution entities, regardless of
their maturities, except where those liabilities rank below
ordinary unsecured liabilities under article 29A of the
VERŻJONI ELETTRONIKA
B 40
Banking Act : 
Provided that, in cases where the exception
applies the Resolution Committee is the resolution
authority responsible for the relevant subsidiary that is not
a resolution entity,  shall assess whether the amount of
items complying with regulation 45F(2) is sufficient to
support the implementation of the preferred resolution
strategy.";
(c) in the second proviso of sub-regulation (2) thereof,
the words "the extent to which other institutions hold liabilities
eligible for a bail-in tool", shall be substituted by the words "the
extent to which other institutions hold bail-inable liabilities"; 
(d) the proviso of sub-regulation (3) thereof , shall be
substituted by the following: 
"Provided that, the Resolution Committee shall
carefully assess whether liabilities to institutions or entities
referred to in paragraphs (b), (c) or (d) of the definition
"entity" in regulation 2(1) , that are part of the same
resolution group without being themselves resolution
entities and that are not excluded from the applicable  write
down and conversion powers under paragraph (h) of sub-
regulation (2) , should be excluded or partially excluded
under paragraphs (a) to (d) to ensure effective
implementation of the resolution strategy : 
Provided further that, where the Resolution
Committee decides to exclude or partially exclude a bail-
inable liability or class of bail-inable liabilities under this
sub-regulation, the level of write down or conversion
applied to other bail-inable liabilities may be increased to
take account of such exclusions, provided that the level of
write down and conversion applied to other bail-inable
liabilities complies with the principle in regulation
34(1)(g)."; and
(e) sub-regulation (4) thereof, shall be substituted by the
following: 
"(4) Where the Resolution Committee decides to
exclude or partially exclude a bail-inable liability or class
of bail-inable liabilities pursuant to this regulation, and the
losses that would have been borne by those liabilities have
not been passed on fully to other creditors, the resolution
VERŻJONI ELETTRONIKA
B 41
financing arrangement may make a contribution to the
institution under resolution to do one or both of the
following:
(a) cover any losses which have not been
absorbed by bail-inable liabilities and restore the net
asset value of the institution under resolution to zero
in accordance with regulation 46(1)(a);
(b) purchase shares or other instruments of
ownership or capital instruments in the institution
under resolution, in order to recapitalise the
institution in accordance with regulation 46(1)(b).";
(f)  in paragraph (a) of sub-regulation (5) thereof, the
words "eligible liabilities" shall be substituted by the words "bail-
inable liabilities".
Adds new 
regulation 44A 
to the principal 
regulation s.17. Immediately after regulation 44 of the principal regulations
there shall be added the following new regulation:
"Selling of 
subordinated 
eligible 
liabilities to 
retail clients.44A. (1) Where a seller of eligible liabilities
meets all the conditions referred to in Article 72a of the
CRR with the exception of point (b) of Article 72a(1) and
paragraphs 3 to 5 of Article 72b of that Regulation, the
sale of the eligible liabilities mentioned above to a retail
client as defined in point (11) of Article 4(1) of Directive
2014/65/EU, shall be permitted when the following
conditions are fulfilled:
(a) the seller has performed a suitability test
in accordance with Article 25(2) of Directive 2014/
65/EU; 
(b) the seller is satisfied, on the basis of the
test referred to in point (a), that such eligible
liabilities are suitable for such retail client; 
(c) the seller documents the suitability in
accordance with Article 25(6) of Directive 2014/65/
EU. 
VERŻJONI ELETTRONIKA
B 42
Substitutes  
regulation 45 of 
the principal 
regulations.18.Regulation 45 of the principal regulations shall be
substituted by the following:(2) Where the conditions laid down in sub-
regulation (1) are fulfilled and the financial instrument
portfolio of such retail client does not, at the time of the
purchase, exceed five hundred thousand euro (€500,000) ,
the seller shall, on the basis of the information provided
by the retail client in accordance with sub-regulation (3),
ensure that at the time of the purchase, the initial
investment amount invested in one or more liabilities
instruments referred to in sub-regulation (1) is at least ten
thousand euro (€10,000) .  
(3) The retail client shall provide the seller with
accurate information on the financial instrument portfolio
of the retail client , including any investments in liabilities
referred to in sub-regulation (1). 
(4) For the purpose of sub-regulations (2) and (3),
the financial instrument portfolio of the retail client shall,
with the exception of any financial instruments that have
been given as collateral, include cash deposits and
financial instruments. 
(5) The provisions of this regulation shall not
apply to liabilities referred to in sub-regulation (1) issued
before 28th December, 2020.". 
"Application 
and calculation 
of the minimum 
requirement for 
own funds and 
eligible 
liabilities. 45. (1) Institutions and entities referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) meet, at all times, the requirements for
own funds and eligible liabilities where required by and
in accordance with this regulation and regulations 45A to
45I.
(2) The requirement referred to in sub-regulation
(1) shall be calculated in accordance with sub-regulations
(3), (5) and (7) of regulation 45C, as applicable, as the
amount of own funds and eligible liabilities and
expressed as percentages of: 
(a) the total risk exposure amount of the
relevant entity referred to in sub-regulation (1),
calculated in accordance with Article 92(3) of the
CRR; and
(b) the total exposure measure of the
relevant entity referred to in sub-regulation (1),
calculated in accordance with Articles 429 and
429a of the CRR.".
VERŻJONI ELETTRONIKA
B 43
Adds new 
regulation 45A 
to the principal 
regulation s.19.Immediately after regulation 45 of the principal regulations
there shall be added the following new regulation:
Adds new 
regulation 45B 
to the principal 
regulation s.20.Immediately after regulation 45A of the principal
regulations there shall be added the following new regulation:"Exemption 
from the 
minimum 
requirement for 
own funds and 
eligible 
liabilities. 45A.(1) Notwithstanding regulation 45, the
Resolution Committee shall exempt from the requirement
laid down in regulation 45(1) mortgage credit institutions
financed by covered bonds which are not allowed to
receive deposits under Maltese law, provided that all of
the following conditions are met: 
(a) the mortgage credit institutions will be
wound up in national insolvency proceedings or in
other types of proceedings laid down for those
institutions and implemented in accordance with
regulations 38, 40 or 42; and 
(b) the proceedings referred to in paragraph
(a), ensure that creditors of those institutions,
including holders of covered bonds, where relevant,
bear losses in a way that achieves the resolution
objectives.
(2) Institutions exempt from the requirement laid
down in regulation 45(1) shall not form part of the
consolidation referred to in regulation 45E(1).". 
"Eligible 
liabilities for 
resolution 
entities.45B. (1) Liabilities shall be included in the
amount of own funds and eligible liabilities of resolution
entities only , where they satisfy the conditions referred to
in the following articles of the CRR:
(a) Article 72a;
(b) Article 72b, with the exception of point
(d) of paragraph 2; and 
(c) Article 72c. 
Provided that, by way of derogation from this
sub-regulation, where references to the requirements in
Article 92a or Article 92b of the CRR for the purpose of
those Articles have been made, eligible liabilities shall
consist of eligible liabilities as defined in Article 72k of
the said Regulation and determined in accordance with
Chapter 5a of Title I of Part Two of the said Regulation.
VERŻJONI ELETTRONIKA
B 44
(2) Liabilities that arise from debt instruments
with embedded derivatives, including structured notes,
that satisfy the conditions of paragraph (a) of sub-
regulation (1), with the exception of point (l) of Article
72a(2) of the CRR, shall be included in the amount of
own funds and eligible liabilities when one of the
following conditions is met:
(a) the principal amount of the liability
arising from the debt instrument known at the time
of issue, is fixed or increasing, and is not affected
by an embedded derivative feature, and the total
amount of liability arising from the debt instrument,
including the embedded derivative, can be valued
on a daily basis by reference to an active and liquid
two-way market for an equivalent instrument
without credit risk, in accordance with Articles 104
and 105 of the CRR; or
(b) the debt instrument includes a
contractual term that specifies that the value of the
claim in cases of insolvency of the issuer and of the
resolution of the issuer is fixed or increasing, and
does not exceed the initially paid-up amount of the
liability:
Provided that, debt instruments referred
to in sub-regulation (2), including their embedded
derivatives, shall not be subject to any netting
agreement and the valuation of such instruments
shall not be subject to regulation 49(3) : 
Provided further that, the liabilities
referred to in sub-regulation (2), shall only be
included in the amount of own funds and eligible
liabilities with respect to the part of the liability that
corresponds to the principal amount referred to in
sub-regulation (2)(a) or to the fixed or increased
amount referred to in sub-regulation (2)(b). 
(3) Where the liabilities are issued by a subsidiary
established in a Member State to an existing shareholder
that is not part of the same resolution group, and that
subsidiary is part of the same resolution group as the
resolution entity, those liabilities shall be included in the
amount of own funds and eligible liabilities of that
resolution entity, provided that all of the following
conditions are met:
(a) the liabilities are issued in accordance
with paragraph (a) of regulation 45F(2); 
VERŻJONI ELETTRONIKA
B 45
(b) the exercise of the write down or
conversion power in relation to those liabilities in
accordance with regulations 59 or 62 does not affect
the control of the subsidiary by the resolution entity; 
(c) those liabilities do not exceed an amount
determined by subtracting: 
(i) the sum of the liabilities issued to
and bought by the resolution entity either
directly or indirectly through other entities in
the same resolution group and the amount of
own funds issued in accordance with
paragraph (b) of regulation 45F(2) from
(ii) the amount required in accordance
with regulation 45F(1).
(4) Without prejudice to the minimum
requirement in regulation 45C(5) or paragraph (a) of
regulation 45D(1), the Resolution Committee shall ensure
that a part of the requirement referred to in regulation 45E
equal to eight per cent of the total liabilities, including
own funds, shall be met by resolution entities that are G-
SIIs or resolution entities that are subject to regulation
45C(5) or (6) using own funds, subordinated eligible
instruments, or liabilities as referred to in sub-regulation
(3). The Resolution Committee may permit that a level
lower than eight per cent of the total liabilities, including
own funds, but greater than the amount resulting from the
application of the formula (1-(X1/X2)) × 8% of the total
liabilities, including own funds, shall be met by resolution
entities that are G-SIIs or resolution entities that are
subject to regulation 45C(5) or (6) using own funds,
subordinated eligible instruments, or liabilities as referred
in sub-regulation (3), provided that all the conditions set
out in Article 72b(3) of the CRR are met, where in light of
the reduction that is possible under Article 72b(3) of the
said Regulation: 
Provided that, for the purposes of this sub-
regulation X1 = 3.5 per cent of the total risk exposure
amount calculated in accordance with Article 92(3) of the
CRR:
Provided further that, for the purposes of this
sub-regulation X2 = the sum of 18 per cent of the total
risk exposure amount calculated in accordance with
Article 92(3) of the CRR and the amount of the combined
buffer requirement: 
VERŻJONI ELETTRONIKA
B 46
Provided further that, for resolution entities
that are subject to regulation 45C(5), where the
application of this sub-regulation leads to a requirement
greater than 27 per cent of the total risk exposure amount,
for the resolution entity concerned, the Resolution
Committee shall limit the part of the requirement referred
to in regulation 45E which is to be met using own funds,
subordinated eligible instruments, or liabilities as referred
to in sub-regulation (3), to an amount equal to 27 per cent
of the total risk exposure amount, if the Resolution
Committee has assessed that: 
(a) access to the resolution financing
arrangement is not considered to be an option for
resolving that resolution entity in the resolution
plan; and 
(b) where paragraph (a) does not apply, the
requirement referred to in regulation 45E allows
that resolution entity to meet the requirements
referred to in regulation 44(5) or 44(8) as
applicable : 
Provided further that, in carrying out the
assessment referred to in the first proviso, the
Resolution Committee shall also take into account
the risk of disproportionate impact on the business
model of the resolution entity concerned. For
resolution entities that are subject to regulation
45C(6), the first proviso does not apply. 
(5) Where the resolution entities are neither G-
SIIs nor resolution entities that are subject to regulation
45C(5) or (6), the Resolution Committee may decide that
a part of the requirement referred to in regulation 45E up
to the greater of eight per cent of the total liabilities,
including own funds, of the entity and the formula
referred to in sub-regulation (7), shall be met using own
funds, subordinated eligible instruments, or liabilities as
referred to in sub-regulation (3), provided that the
following conditions are met: 
Cap. 371.(a) non-subordinated liabilities referred to in
sub-regulations (1) and (2) have the same priority
ranking in the insolvency hierarchy under article
29A of the Banking Act as certain liabilities that are
excluded from the application of write down and
conversion powers in accordance with regulation
44(2) or (3); 
VERŻJONI ELETTRONIKA
B 47
(b) there is a risk that, as a result of a
planned application of write-down and conversion
powers to non-subordinated liabilities that are not
excluded from the application of write down and
conversion powers in accordance with regulation
44(2) or (3), creditors whose claims arise from those
liabilities incur greater losses than they would incur
in a winding- up under normal insolvency
proceedings; and
(c) the amount of own funds and other
subordinated liabilities does not exceed the amount
necessary to ensure that the creditors referred to
paragraph (b) do not incur losses above the level of
losses that they would otherwise have incurred in
the winding-up under normal insolvency
proceedings: 
Provided that, where the Resolution
Committee determines that, within a class of
liabilities which includes eligible liabilities, the
amount of the liabilities that are excluded or
reasonably likely to be excluded from the
application of write down and conversion powers in
accordance with regulation 44(2) or (3) totals more
than ten per cent of that class, the Resolution
Committee shall assess the risk referred to in
paragraph (b). 
(6) For the purposes of sub-regulations (4), (5)
and (7), derivative liabilities shall be included in total
liabilities on the basis that full recognition is given to
counterparty netting rights:
Provided that, the own funds of a resolution
entity that are used to comply with the combined buffer
requirement shall be eligible to comply with the
requirements referred to in sub-regulations (4), (5) and
(7). 
VERŻJONI ELETTRONIKA
B 48
(7) By derogation from sub-regulation (4), the
Resolution Committee may decide that the requirement
referred to in regulation 45E shall be met by resolution
entities that are G-SIIs or resolution entities that are
subject to regulation 45C(5) or (6) using own funds,
subordinated eligible instruments, or liabilities as referred
to in sub-regulation (3), to the extent that, due to the
obligation of the resolution entity to comply with the
combined buffer requirement and the requirements
referred to in Article 92a of the CRR, regulations 45C(5)
and 45E, the sum of those own funds, instruments and
liabilities does not exceed the greater of: 
(a) 8 per cent of the total liabilities,
including own funds, of the entity; or
(b) the amount resulting from the
application of the formula Ax2+Bx2+C:
Where: A = the amount resulting from
the requirement referred to in point (c) of
Article 92(1) of the CRR;
Where: B = the amount resulting
from the requirement referred to in Article
104a of the CRD; 
Where: C = the amount resulting from
the combined buffer requirement. 
(8) The Resolution Committee may exercise the
power referred to in sub-regulation (7), with respect to
resolution entities that are G-SIIs or that are subject to
regulation 45C(5) or (6), and that meet one of the
conditions set out in the first proviso, up to a limit of
hundred per cent of the total number of all resolution
entities that are G-SIIs or that are subject to regulation
45C(5) or (6) for which the Resolution Committee
determines the requirement referred to in regulation 45E: 
Provided that, the conditions shall be
considered by the Resolution Committee as follows:
(a) substantive impediments to resolvability
have been identified in the preceding resolvability
assessment and either: 
(i) no remedial action has been taken
following the application of the measures
referred to in regulation 17(5) in the timeline
required by the Resolution Committee, or 
VERŻJONI ELETTRONIKA
B 49
(ii) the identified substantive
impediments cannot be addressed using any of
the measures referred to in regulation 17(5),
and the exercise of the power referred to in
sub-regulation (7) of this regulation would
partially or fully compensate for the negative
impact of the substantive impediments on
resolvability; 
(b) the Resolution Committee considers that
the feasibility and credibility of the resolution
entity's preferred resolution strategy is limited,
taking into account the entity's size, its
interconnectedness, the nature, scope, risk and
complexity of its activities, its legal status and its
shareholding structure; or 
(c) the requirement referred to in Article
104a of the CRD reflects the fact that the resolution
entity that is a G-SII or that is subject to regulation
45C(5) or (6) is, in terms of riskiness, among the top
twenty per cent of institutions for which the
Resolution Committee determines the requirement
referred to in regulation 45(1):
Provided further that, for the purposes of
the percentages referred to in this sub-regulation,
the Resolution Committee shall round the number
resulting from the calculation up to the closest
whole number.
(9) The Resolution Committee shall take the
decisions referred to in sub-regulations (5) or (7) after
consulting the Authority: 
Provided that, when taking those decisions,
the Resolution Committee shall take into account: 
(a) the depth of the market for the resolution
entity’s own funds instruments and subordinated
eligible instruments, the pricing of such
instruments, where they exist, and the time needed
to execute any transactions necessary for the
purpose of complying with the decision; 
(b) the amount of eligible liabilities
instruments that meet all of the conditions referred
to in Article 72a of CRR that have a residual
maturity below one year as of the date of the
decision, with a view to making quantitative
adjustments to the requirements referred to in sub-
regulations (5) and (7);
VERŻJONI ELETTRONIKA
B 50
Adds new 
regulation 45C 
to the principal 
regulation s.21.Immediately after regulation 45B of the principal
regulations there shall be added the following new regulation:(c) the availability and the amount of
instruments that meet all of the conditions referred
to in Article 72a of the CRR with the exception of
point (d) of Article 72b(2) of the said Regulation;
(d) whether the amount of liabilities that are
excluded from the application of write down and
conversion powers in accordance with regulation
44(2) or (3) and that, in normal insolvency
proceedings, rank equally with or below the highest
ranking eligible liabilities is significant in
comparison to the own funds and eligible liabilities
of the resolution entity. Where the amount of
excluded liabilities does not exceed five per cent of
the amount of the own funds and eligible liabilities
of the resolution entity, the excluded amount shall
be considered as not being significant. Above that
threshold, the significance of the excluded liabilities
shall be assessed by the Resolution Committee; 
(e) the resolution entity’s business model,
funding model, and risk profile, as well as its
stability and ability to contribute to the economy;
and 
(f) the impact of possible restructuring costs
on the resolution entity’s recapitalisation.". 
"Determination 
of the minimum 
requirement for 
own funds and 
eligible 
liabilities.45C. (1) The Resolution Committee shall, after
consulting the Authority, determine the requirement
referred to in regulation 45(1) on the basis of the
following criteria: 
(a) the need to ensure that the resolution
group can be resolved by the application of the
resolution tools to the resolution entity, including,
where appropriate, the bail-in tool, in a way that
meets the resolution objectives; 
VERŻJONI ELETTRONIKA
B 51
(b) the need to ensure, where appropriate,
that the resolution entity and its subsidiaries that are
institutions or entities referred to in paragraphs (b),
(c) or (d) of the definition "entity" in regulation 2(1)
but are not resolution entities have sufficient own
funds and eligible liabilities to ensure that, if the
bail-in tool or write down and conversion powers,
were to be applied to the resolution entity and its
subsidiaries, losses could be absorbed and that it is
possible to restore the total capital ratio and, as
applicable, the leverage ratio, of the relevant entities
to a level necessary to enable them to continue to
comply with the conditions for authorisation and to
carry on the activities for which they are authorised
under the CRD or Directive 2014/65/EU;
(c) the need to ensure, if the resolution plan
anticipates the possibility for certain classes of
eligible liabilities to be excluded from bail-in
pursuant to regulation 44(3) or to be transferred in
full to a recipient under a partial transfer, that the
resolution entity has sufficient own funds and other
eligible liabilities to absorb losses and to restore its
total capital ratio and, as applicable, its leverage
ratio, to the level necessary to enable it to continue
to comply with the conditions for authorisation and
to carry on the activities for which it is authorised
under the CRD or Directive 2014/65/EU;
(d) the size, the business model, the funding
model and the risk profile of the entity; and
(e) the extent to which the failure of the
entity would have adverse effect of the financial
stability, including through contagion to other
institutions or entities, due to the interconnectedness
of the entity with those other institutions or entities
or with the rest of the financial system. 
(2) Where the resolution plan provides that
resolution action is to be taken or that the power to write
down and convert relevant capital instruments and
eligible liabilities, in accordance with regulation 59 , is to
be exercised in accordance with the relevant scenario
referred to in regulation 10(3), the requirement referred to
in regulation 45(1) shall equal an amount sufficient to
ensure that: 
(a) the losses that are expected to be
incurred by the entity are fully absorbed; and
VERŻJONI ELETTRONIKA
B 52
(b) the resolution entity and its subsidiaries
that are institutions or entities referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) but are not resolution entities, are
recapitalised to a level necessary to enable them to
continue to comply with the conditions for
authorisation and to carry on the activities for which
they are authorised under the CRD, Directive 2014/
65/EU or an equivalent legislative act for an
appropriate period not longer than one year : 
Provided that, where the resolution plan
provides that the entity is to be wound up under
normal insolvency proceedings, the Resolution
Committee shall assess whether it is justified to
limit the requirement referred to in regulation 45(1)
for that entity, so that it does not exceed an amount
sufficient to absorb losses in accordance with
paragraph (a) : 
Provided further that, the assessment by
the Resolution Committee shall, in particular,
evaluate the limit referred to in paragraph (b) as
regards any possible impact on financial stability
and on the risk of contagion to the financial system. 
(3) For resolution entities, the amount referred to
in paragraph (a) of regulation 45C(2) shall be the
following: 
(a) for the purpose of calculating the
requirement referred to in regulation 45(1), in
accordance with paragraph (a) of regulation 45(2),
the sum of: 
(i) the amount of losses to be absorbed
in resolution that corresponds to the
requirements referred to in point (c) of Article
92(1) of the CRR and Article 104a of the CRD
Directive 2013/36/EU at the consolidated
resolution group level; and 
VERŻJONI ELETTRONIKA
B 53
(ii) a recapitalisation amount that
allows the resolution group resulting from
resolution to restore compliance with its total
capital ratio requirement referred to in point
(c) of Article 92(1) of Regulation (EU) No
575/2013 and its requirement referred to in
Article 104a of Directive 2013/36/EU at the
consolidated resolution group level , after the
implementation of the preferred resolution
strategy; and
(b) for the purpose of calculating the
requirement referred to in regulation 45(1), in
accordance with paragraph (b) of regulation 45(2),
the sum of: 
(i) the amount of the losses to be
absorbed in resolution that corresponds to the
resolution entity’s leverage ratio requirement
referred to in point (d) of Article 92(1) of the
CRR at the consolidated resolution group
level; and 
(ii) a recapitalisation amount that
allows the resolution group resulting from
resolution to restore compliance with the
leverage ratio requirement referred to in point
(d) of Article 92(1) of the CRR at the
consolidated resolution group level , after the
implementation of the preferred resolution
strategy: 
Provided that, for the purposes of
paragraph (a) of regulation 45(2), the requirement
referred to in regulation 45(1) shall be expressed in
percentage terms as the amount calculated in
accordance with paragraph (a), divided by the total
risk exposure amount:
Provided further that, for the purposes of
paragraph (b) of regulation 45(2), the requirement
referred to in regulation 45(1) shall be expressed in
percentage terms as the amount calculated in
accordance with paragraph (b) of this sub-
regulation, divided by the total exposure measure.
Provided further that, when setting the
individual requirement provided for in paragraph
(b), the Resolution Committee shall take into
account the requirements referred to in regulations
37(10), 44(5) and (8).
VERŻJONI ELETTRONIKA
B 54
(4) (a) When setting the recapitalisation
amounts referred to in sub-regulation (3), the Resolution
Committee shall: 
(i) use the most recently reported values for
the relevant total risk exposure amount or total
exposure measure, adjusted for any changes
resulting from resolution actions set out in the
resolution plan; and 
(ii) after consulting the Authority, adjust the
amount corresponding to the current requirement
referred to in Article 104a of the CRD  downwards
or upwards to determine the requirement that is to
apply to the resolution entity after the
implementation of the referred resolution strategy. 
(b) The Resolution Committee shall be able to
increase the requirement provided in paragraph (a)(ii) of
sub-regulation (3) by an appropriate amount necessary to
ensure that, following resolution, the entity is able to
sustain sufficient market confidence for an appropriate
period, which shall not exceed one year. 
(c) Where paragraph (a) of this sub-regulation
applies, the amount referred therein shall be equal to the
combined buffer requirement that is to apply after the
application of the resolution tools, less the amount
referred to in paragraph (a) of point (6) of Article 128 of
the CRD. 
(d) The amount referred to in paragraph (a) of this
sub-regulation shall be adjusted downwards if, after
consulting the Authority, the Resolution Committee
determines that it would be feasible and credible for a
lower amount to be sufficient to sustain market
confidence and to ensure both the continued provision of
critical economic functions by the institution or entity
referred to in paragraphs (b), (c) or (d) of the definition
"entity" in regulation 2(1) , and its access to funding
without recourse to extraordinary public financial support ,
with the exception of contributions from resolution
financing arrangements, in accordance with regulation
44(5) and (8) and regulation 101(2), following the
implementation of the resolution strategy :
VERŻJONI ELETTRONIKA
B 55
Provided that, the said amount shall be
adjusted upwards if, after consulting the Authority, the
Resolution Committee determines that a higher amount is
necessary to sustain sufficient market confidence and to
ensure both the continued provision of critical economic
functions by the institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , and its access to funding without recourse
to extraordinary public financial support , with the
exception of contributions from resolution financing
arrangements, in accordance with regulations 44(5) and
(8) and regulation 101(2), for an appropriate period which
shall not exceed one year. 
(5) For resolution entities that are not subject to
Article 92a of the CRR and that are part of a resolution
group, the total assets of which exceed EUR 100 billion,
the level of the requirement referred to in sub-regulation
(3) shall be at least equal to:
(a) 13.5 per cent when calculated in
accordance with paragraph (a) of regulation 45(2);
and 
(b)5 per cent when calculated in accordance
with paragraph (b) of regulation 45(2). 
Provided that, by way of derogation from
regulation 45B, the resolution entities referred to in this
sub-regulation shall meet a level of the requirement
referred to in this sub-regulation that is equal to 13.5 per
cent when calculated in accordance with paragraph (a) of
regulation 45(2) and to 5 per cent when calculated in
accordance with paragraph (b) of regulation 45(2) using
own funds, subordinated eligible instruments, or liabilities
as referred to in regulation 45B(3). 
(6) The Resolution Committee may, after
consulting the Authority, decide to apply the requirements
laid down in sub-regulation (5) , to a resolution entity
which is not subject to Article 92a of the CRR and which
is part of a resolution group , the total assets of which are
lower than EUR 100 billion  and which the Resolution
Committee has assessed as reasonably likely to  pose a
systemic risk in the event of its failure : 
Provided that, when taking a decision as
referred to in this sub-regulation, the Resolution
Committee shall take into account: 
(a) the prevalence of deposits, and the
absence of debt instruments, in the funding model; 
VERŻJONI ELETTRONIKA
B 56
(b) the extent to which access to the capital
markets for eligible liabilities is limited; 
(c) the extent to which the resolution entity
relies on Common Equity Tier 1 capital to meet the
requirement referred to in regulation 45E : 
Provided further that, the absence of a decision
pursuant to this sub-regulation is without prejudice to any
decision under regulation 45B(5). 
(7) For entities that are not themselves resolution
entities, the amount referred to in sub-regulation (2) shall
be the following:
(a) for the purpose of calculating the
requirement referred to in regulation 45(1), in
accordance with paragraph (a) of regulation 45(2),
the sum of: 
(i) the amount of the losses to be
absorbed that corresponds to the requirements
referred to in point (c) of Article 92(1) of the
CRR and Article 104a of the CRD of the
entity; and 
(ii) a recapitalisation amount that
allows the entity to restore compliance with its
total capital ratio requirement referred in point
(c) of Article 92(1) of the CRR and its
requirement referred to in Article 104a of the
CRD, after the exercise of the power to write
down or convert relevant capital instruments
and eligible liabilities in accordance with
regulation 59 , or after the resolution of the
resolution group; and 
(b) for the purpose of calculating the
requirement referred to in regulation 45(1), in
accordance with paragraph (b) of regulation 45(2),
the sum of: 
(i) the amount of the losses to be
absorbed that corresponds to the entity’s
leverage ratio requirement referred to in point
(d) of Article 92(1) of the CRR; and 
VERŻJONI ELETTRONIKA
B 57
(ii) a recapitalisation amount that
allows the entity to restore compliance with its
leverage ratio requirement referred to in point
(d) of Article 92(1) of the CRR after the
exercise of the power to write down or convert
relevant capital instruments and eligible
liabilities in accordance with regulation 59 , or
after the resolution of the resolution group : 
Provided that, for the purposes of
paragraph (a) of regulation 45(2), the requirement
referred to in regulation 45(1) shall be expressed in
percentage terms as the amount calculated in
accordance with paragraph (a) divided by the total
risk exposure amount: 
Provided further that, for the purposes of
paragraph (b) of regulation 45(2), the requirement
referred to in regulation 45(1) shall be expressed in
percentage terms as the amount calculated in
accordance with paragraph (b) divided by the total
exposure measure. 
(8) (a) The Resolution Committee shall, when
setting the individual requirement provided in paragraph
(b) of sub-regulation (7) take into account the
requirements referred to in regulations 37(10), 44(5) and
44(8). 
(b) For the purpose of setting the
recapitalisation amounts referred to in sub-regulation (7),
the Resolution Committee shall:
(i) use the most recently reported values for
the relevant total risk exposure amount or total
exposure measure, adjusted for any changes
resulting from actions set out in the resolution plan;
and 
(ii) after consulting the Authority, adjust the
amount corresponding to the current requirement
referred to in Article 104a of the CRD downwards
or upwards to determine the requirement that is to
apply to the relevant entity , after the exercise of the
power to write down or convert relevant capital
instruments and eligible liabilities , in accordance
with regulation 59 , or after the resolution of the
resolution group. 
VERŻJONI ELETTRONIKA
B 58
(c) The Resolution Committee may increase the
requirement provided in paragraph (a)(i) of sub-regulation
(7) by an appropriate amount necessary to ensure that,
following the exercise of the power to write down or
convert relevant capital instruments and eligible liabilities
in accordance with regulation 59, the entity is able to
sustain sufficient market confidence for an appropriate
period which shall not exceed one year. 
(d) Where paragraph (c) of this sub-regulation
applies, the amount referred to in the said paragraph (c)
shall be equal to the combined buffer requirement that is
to apply after the exercise of the power referred to in
regulation 59,  or after the resolution of the resolution
group, less the amount referred to in paragraph (a) of
point (6) of Article 128 of the CRD .
(e) The amount referred to in paragraph (c)  shall
be adjusted downwards if, after consulting the Authority,
the Resolution Committee determines that it would be
feasible and credible for a lower amount to be sufficient to
ensure market confidence , and to ensure both the
continuous provision of critical economic functions by the
institution or entity referred to in paragraphs (b), (c) or (d)
of the definition "entity" in regulation 2(1) , and its access
to funding without recourse to extraordinary public
financial support , with the exception of contributions
from resolution financing arrangements, in accordance
with regulations 44(5) and 44(8) and regulation 101(2) ,
after the exercise of the power referred to in regulation 59 ,
or after the resolution of the resolution group :
Provided that, the amount shall be adjusted
upwards if, after consulting the Authority, the Resolution
Committee determines that a higher amount is necessary
to sustain sufficient market confidence and to ensure both
continued provision of critical economic functions by the
institution or entity referred to in paragraphs (b), (c) or (d)
of the definition "entity" in regulation 2(1) , and its access
to funding without recourse to extraordinary public
financial support , with the exception of contributions
from resolution financing arrangements, in accordance
with regulations 44(5) and 44(8) and regulation 101(2) for
an appropriate period which shall not exceed one year. 
VERŻJONI ELETTRONIKA
B 59
Adds new 
regulation 45D 
to the principal 
regulation.22. Immediately after regulation 45C  of the principal
regulations there shall be added the following new regulation:(9) Where the Resolution Committee expects that
certain classes of eligible liabilities are reasonably likely
to be fully or partially excluded from bail-in pursuant to
regulation 44(3) , or might be transferred in full to a
recipient under a partial transfer, the requirement referred
to in regulation 45(1) shall be met using own funds or
other eligible liabilities that are sufficient to: 
(a) cover the amount of excluded liabilities
identified in accordance with regulation 44(3); and
(b) ensure that the conditions referred to in
sub-regulation (2) are fulfilled.
(10) Any decision by the Resolution Committee to
impose a minimum requirement of own funds and eligible
liabilities under this regulation shall contain the reasons
for that decision, including a full assessment of the
elements referred to in sub-regulations (2) to (9) , and shall
be reviewed by the Resolution Committee without undue
delay to reflect any changes in the level of the
requirement referred to in Article 104a of the CRD. 
(11) For the purposes of sub-regulation (3) and (7),
capital requirements shall be interpreted in accordance
with the Authority’s application of the transitional
provisions laid down in Chapters 1, 2 and 4 of Title 1 of
Part Ten of the CRR and in the provisions laid down in
Maltese law exercising the options granted to the
Authority by the said Regulation.".
"Determination 
of the minimum 
requirement for 
own funds and 
eligible 
liabilities for 
resolution 
entities of G-
SIIs and Union 
material 
subsidiaries of 
non-EU G-SIIs.45D. (1) The requirement referred to in regulation
45(1) for a resolution entity that is a G-SI or part of a G-
SII shall consist of the following:
(a) The requirement referred to in Articles
92a and 494 of the CRR; and 
(b) any additional requirement for own
funds and eligible liabilities that has been
determined by the Resolution Committee
specifically in relation to that entity in accordance
with sub-regulation (3). 
(2) The requirement referred to in regulation 45(1)
for a Union material subsidiary of a non-EU G-SII shall
consist of the following: 
(a) the requirements referred to in Articles
92b and 494 of Regulation (EU) No 575/2013; and 
VERŻJONI ELETTRONIKA
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Adds new 
regulation 45E 
to the principal 
regulations.23.Immediately after regulation 45D of the principal(b) any additional requirement for own
funds and eligible liabilities that has been
determined by the Resolution Committee
specifically in relation to that material subsidiary in
accordance with sub-regulation (3), which is to be
met using own funds and liabilities that meet the
conditions of regulations 45F and 89(2). 
(3) The Resolution Committee shall impose an
additional requirement for own funds and eligible
liabilities referred to in sub-regulation (1)(b) and  sub-
regulation (2)(b) only: 
(a) where the requirement referred to in
paragraph (a) of sub-regulation (1) or paragraph (a)
of sub-regulation (2) is not sufficient to fulfil the
conditions set out in regulation 45C; and 
(b) to an extent that ensures that the
conditions set out in regulation 45C are fulfilled. 
(4) For the purposes of regulation 45H(2), where
more than one G-SII entity belonging to the same G-SII
are resolution entities, the relevant European resolution
authorities shall calculate the amount referred to in sub-
regulation (3): 
(a) for each resolution entity;
(b) for the Union parent entity as if it was
the only resolution entity of the G-SII. 
(5) Any decision by the Resolution Committee to
impose an additional requirement for own funds and
eligible liabilities under sub-regulation (1)(b) or sub-
regulation (2)(b) shall contain the reasons for that
decision, including a full assessment of the elements
referred to in sub-regulation (3) , and shall be reviewed by
the Resolution Committee without undue delay to reflect
any changes in the level of the requirement referred to in
Article 104a of the CRD that applies to the resolution
group or the Union material subsidiary of a non-EU G-
SII.". 
VERŻJONI ELETTRONIKA
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regulations there shall be added the following new regulation:
Adds new 
regulation 45F 
to the principal 
regulations.24.Immediately after regulation 45E of the principal
regulations there shall be added the following new regulation:"Application of 
the minimum 
requirement for 
own funds and 
eligible 
liabilities to 
resolution 
entities.45E. (1) Resolution entities shall comply with the
requirements laid down in regulation 45 B to regulation
45D on a consolidated basis at the level of the resolution
group. 
(2) The Resolution Committee shall determine the
requirement referred to in regulation 45(1) for a
resolution entity at the consolidated resolution group
level in accordance with regulation 45H, on the basis of
the requirements laid down in regulations 45B to 45D and
on the basis of whether the third-country subsidiaries of
the group are to be resolved separately under the
resolution plan. 
(3) For resolution groups identified in accordance
with paragraph (b) of the definition "resolution group" in
regulation 2(1), the relevant European resolution
authority shall decide, depending on the features of the
solidarity mechanism and of the preferred resolution
strategy, which entities in the resolution group are to be
required to comply with regulation 45C(3) and (5) and
regulation 45D(1), in order to ensure that the resolution
group as a whole complies with sub-regulations (1) and
(2) and how such entities are to do so in conformity with
the resolution plan.". 
"Application 
of the 
minimum 
requirement 
for own 
funds and 
eligible 
liabilities to 
entities that 
are not 
themselves 
resolution 
entities.45F. (1) (a)Institutions that are subsidiaries of a
resolution entity or of a third-country entity, but are not
themselves resolution entities, shall comply with the
requirements laid down in regulation 45C on an individual
basis. 
(b) The Resolution Committee may, after
consulting the Authority, decide to apply the requirement
laid down in this regulation to an entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) that is a subsidiary of a resolution entity but
is not itself a resolution entity. 
(c) By way of derogation from paragraph (a),
Union parent undertakings that are not themselves
resolution entities, but are subsidiaries of third-country
entities, shall comply with the requirements laid down in
regulations 45C and 45D on a consolidated basis. 
VERŻJONI ELETTRONIKA
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(d) For resolution groups identified in
accordance with paragraph (b) of the definition "resolution
group" in regulation 2(1), those credit institutions which are
permanently affiliated to a central body, but are not
themselves resolution entities, a central body which is not
itself a resolution entity, and any resolution entities that are
not subject to a requirement under regulation 45E(3), shall
comply with regulation 45C(7) on an individual basis. 
(e) The requirement referred to in regulation
45(1) for any entity referred to in this sub-regulation, shall
be determined in accordance with regulations 45H and 89,
where applicable, and on the basis of the requirements laid
down in regulation 45C. 
(2) The requirement referred to in regulation 45(1)
for entities referred to in sub-regulation (1) , shall be met
using one or more of the following: 
(a) liabilities:
(i) that are issued to and bought by the
resolution entity, either directly or indirectly
through other entities in the same resolution
group that bought the liabilities from the entity
that is subject to this regulation, or are issued to
and bought by an existing shareholder that is not
part of the same resolution group , as long as the
exercise of write down or conversion powers in
accordance with regulations 59 to 62 , does not
affect the control of the subsidiary by the
resolution entity;
(ii) that fulfil the eligibility criteria
referred to in Article 72a of the CRR, except for
points (b), (c), (k), (l) and (m) of Article 72b(3)
to (5) of the said Regulation; 
(iii) that in normal insolvency
proceedings, rank below liabilities that do not
meet the condition referred to in paragraph (a)(i)
and that are not eligible for own funds
requirements; 
(iv) that are subject to write down or
conversion powers in accordance with
regulations 59 to 62 , in a manner that is
consistent with the resolution strategy of the
resolution group, in particular by not affecting
the control of the subsidiary by the resolution
entity; 
VERŻJONI ELETTRONIKA
B 63
(v) the acquisition of ownership of
which is not funded directly or indirectly by the
entity that is subject to this regulation; 
(vi) the provisions governing which do
not indicate explicitly or implicitly that the
liabilities would be called, redeemed, repaid or
repurchased early, as applicable, by the entity
that is subject to this regulation, with the
exception of the case of insolvency or
liquidation of that entity, and the said entity
does not otherwise provide such an indication; 
(vii) the provisions governing which do
not give the holder the right to accelerate the
future scheduled payment of interest or
principal, with the exception of the case of
insolvency or liquidation of the entity that is
subject to this regulation; 
(viii) the level of interest or dividend
payments, as applicable, due thereon is not
amended on the basis of the credit standing of
the entity that is subject to this regulation or its
parent undertaking;
(b) own funds, through:
(i) Common Equity Tier 1 capital, and
(ii) other own funds that: 
- are issued to and bought by entities
that are included in the same resolution
group, or 
- are issued to an d bought by entities
that are not included in the same
resolution group as long as the exercise of
write down or conversion powers in
accordance with regulations 59 to 62 , does
not affect the control of the subsidiary by
the resolution entity.
(3) Where the Resolution Committee is responsible
for a subsidiary that is not a resolution entity, the
Resolution Committee may waive the application of this
regulation to that subsidiary where: 
(a) both the subsidiary and the resolution
entity are established in Malta and are part of the
same resolution group; 
(b) the resolution entity complies with the
requirement referred to in regulation 45E;
VERŻJONI ELETTRONIKA
B 64
(c) there is no current or foreseen material
practical or legal impediment to the prompt transfer
of own funds or repayment of liabilities by the
resolution entity to the subsidiary in respect of which
a determination has been made in accordance with
regulation 59(3), in particular where resolution action
is taken in respect of the resolution entity; 
(d) the resolution entity satisfies the Authority
regarding the prudent management of the subsidiary
and has declared, with the consent of the Authority,
that it guarantees the commitments entered into by
the subsidiary, or the risks in the subsidiary are of no
significance; 
(e) the risk evaluation, measurement and
control procedures of the resolution entity cover the
subsidiary; 
(f) the resolution entity holds more than
50per cent of the voting rights attached to shares in
the capital of the subsidiary , or has the right to
appoint or remove a majority of the members of the
management body of the subsidiary. 
(4) Where the Resolution Committee is responsible
for a subsidiary that is not a resolution entity, the
Resolution Committee may waive the application of this
regulation to such subsidiary where: 
(a) both the subsidiary and its parent
undertaking are established in Malta and are part of
the same resolution group; 
(b) the parent undertaking complies on a
consolidated basis with the requirement referred to in
regulation 45(1) in Malta; 
(c) there is no current or foreseen material
practical or legal impediment to the prompt transfer
of own funds or repayment of liabilities by the parent
undertaking to the subsidiary in respect of which a
determination has been made in accordance with
regulation 59(3), in particular where resolution action
or powers referred to in regulation 59(1) are taken in
respect of the parent undertaking; 
(d) the parent undertaking satisfies the
Authority regarding the prudent management of the
subsidiary and has declared, with the consent of the
Authority, that it guarantees the commitments entered
into by the subsidiary, or the risks in the subsidiary
are of no significance; 
VERŻJONI ELETTRONIKA
B 65
(e) the risk evaluation, measurement and
control procedures of the parent undertaking cover
the subsidiary;
(f) the parent undertaking holds more than 50
per cent of the voting rights attached to shares in the
capital of the subsidiary or has the right to appoint or
remove a majority of the members of the management
body of the subsidiary.
(5) Where the conditions laid down in paragraphs
(a) and (b) of sub-regulation (3) are met, the Resolution
Committee responsible of a subsidiary may permit the
requirement referred to in regulation 45(1) , to be met in full
or in part with a guarantee provided by the resolution entity,
which fulfils the following conditions: 
(a) the guarantee is provided for at least an
amount that is equivalent to the amount of the
requirement for which it substitutes; 
(b) the guarantee is triggered when the
subsidiary is unable to pay its debts or other liabilities
as they fall due, or a determination has been made in
accordance with regulation 59(3) in respect of the
subsidiary, whichever is the earliest; 
(c) the guarantee is collateralised through a
financial collateral arrangement as defined in point
(a) of Article 2(1) of Directive 2002/47/EC for at
least 50 per cent of its amount; 
(d) the collateral backing the guarantee fulfils
the requirements of Article 197 of the CRR, which
following appropriately conservative haircuts, is
sufficient to cover the amount collateralised as
referred to in paragraph (c); 
(e) the collateral backing the guarantee is
unencumbered and, in particular, is not used as
collateral to back any other guarantee; 
(f) the collateral has an effective maturity that
fulfils the same maturity condition as that referred to
in Article 72c(1) of the CRR; and 
(g) there are no legal, regulatory or
operational barriers to the transfer of the collateral
from the resolution entity to the relevant subsidiary,
including where resolution action is taken in respect
of the resolution entity :
VERŻJONI ELETTRONIKA
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Adds new 
regulation 45G 
to the principal 
regulations.25.Immediately after regulation 45F of the principal
regulations there shall be added the following new regulation:Provided that, for the purposes of
paragraph (g), at the request of the Resolution
Committee, the resolution entity shall provide an
independent written and reasoned legal opinion or
shall otherwise satisfactorily demonstrate that there
are no legal, regulatory or operational barriers to the
transfer of collateral from the resolution entity to the
relevant subsidiary."
"Waiver for a 
central body and 
credit institutions 
permanently 
affiliated to a 
central body.45G. The Resolution Committee may partially or
fully waive the application of regulation 45F, in
respect of a central body or of a credit institution
which is permanently affiliated to a central body,
where all of the following conditions are met: 
(a) the credit institution and the central
body that are subject to supervision by the
Authority, are established in Malta and are part
of the same resolution group;
(b) the commitments of the central body
and its permanently affiliated credit institutions
are joint and several liabilities, or the
commitments of its permanently affiliated credit
institutions are entirely guaranteed by the central
body; 
(c) the minimum requirement for own
funds and eligible liabilities and the solvency
and liquidity of the central body and of all the
permanently affiliated credit institutions, are
monitored as a whole on the basis of the
consolidated accounts of those institutions;
(d) in the case of a waiver for a credit
institution which is permanently affiliated to a
central body, the management of the central body
is empowered to issue instructions to the
management of the permanently affiliated
institutions; 
(e) the relevant resolution group
complies with the requirement referred to in
regulation 45E(3); and
VERŻJONI ELETTRONIKA
B 67
Adds new 
regulation 45H 
to the principal 
regulations.26.Immediately after regulation 45G of the principal
regulations there shall be added the following new regulation:(f) there is no current or foreseen
material practical or legal impediment to the
prompt transfer of own funds or repayment of
liabilities between the central body and the
permanently affiliated credit institutions in the
event of resolution." 
"Procedure for 
determining the 
minimum 
requirement for 
own funds and 
eligible liabilities .45H. (1) The Resolution Committee where it is
the resolution authority of the resolution entity together
with the group-level resolution authority, where different
from the former, and the European resolution authorities
responsible for the subsidiaries of a resolution group that
are subject to the requirement referred to in regulation
45F on an individual basis, shall do everything within
their power to reach a joint decision on: 
(a) the amount of the requirement applied
at the consolidated resolution group level for each
resolution entity; and 
 (b) the amount of the requirement applied
on an individual basis to each entity of a resolution
group which is not a resolution entity . 
Provided that, the joint decision shall ensure
compliance with regulations 45E and 45F and it shall be
fully reasoned and provided to:
(a) the resolution entity by the Resolution
Committee or its European resolution authority; 
(b) the entities of a resolution group which
are not a resolution entity by the Resolution
Committee or the relevant European resolution
authorities of those entities;
(c) the Union parent undertaking of the
group by the Resolution Committee or the
European resolution authority of the resolution
entity, when that Union parent undertaking is not
itself a resolution entity from the same resolution
group: 
VERŻJONI ELETTRONIKA
B 68
Provided further that, the joint decision taken
in accordance with this regulation may provide that,
where consistent with the resolution strategy and
sufficient instruments complying with regulation 45F(2)
have not been bought directly or indirectly by the
resolution entity, the requirements referred to in
regulation 45C(7) are partially met by the subsidiary in
compliance with regulation 45F(2) with instruments
issued to and bought by entities not belonging to the
resolution group.
(2) The Resolution Committee and the European
resolution authorities referred to in sub-regulation (1)
shall, where more than one G-SII entity belonging to the
same G-SII are resolution entities, discuss and where
appropriate and consistent with the G-SII's resolution
strategy, agree on the application of Article 72e of the
CRR and any adjustment to minimise or eliminate the
difference between the sum of the amounts referred to in
point (a) of Article 45d(4) and Article 12 of the said
CRR for individual resolution entities and the sum of the
amounts referred to in point (b) of Article 45d(4) and
Article 12 of the said CRR : 
Provided that, the adjustment mentioned
above may be applied on condition that: 
(a) the adjustment may be applied in
respect of differences in the calculation of the total
risk exposure amounts between the relevant
Member States by adjusting the level of the
requirement; and
(b) the adjustment shall not be applied to
eliminate differences resulting from exposures
between resolution groups : 
Provided further that, the sum of the
amounts referred to in paragraph (a) of regulation
45D(4) and Article 12 of the CRR for individual
resolution entities shall not be lower than the sum
of the amounts referred to in paragraph (b) of
regulation 45D(4) and Article 12 of the said CRR. 
(3) In the absence of such a joint decision within
four months, a decision shall be taken in accordance with
sub-regulations (4) to (6).
VERŻJONI ELETTRONIKA
B 69
(4) (a) Where a joint decision is not taken
within four months because of a disagreement
concerning a consolidated resolution group requirement
referred to in regulation 45E, a decision shall be taken on
that requirement by the Resolution Committee or the
European resolution authority responsible for the
resolution entity after having duly taken into account: 
(i) the assessment of entities of the
resolution group that are not a resolution entity,
performed by the relevant European resolution
authorities; 
(ii) the opinion of the group-level
resolution authority, where different from the
resolution authority of the resolution entity. 
(b) The Resolution Committee or the European
resolution authority of the resolution entity shall where,
at the end of the four-month period, any of the European
resolution authorities concerned has referred the matter
to the EBA in accordance with Article 19 of Regulation
(EU) No 1093/2010, defer its decision and await any
decision that the EBA may take in accordance with
Article 19(3) of the said Regulation, and shall take its
decision in accordance with the decision of the EBA : 
Provided that, the decision of the EBA shall
take into account paragraphs (a) and (b) of this sub-
regulation. The four-month period shall be deemed to be
the conciliation period within the meaning of Regulation
(EU) No 1093/2010 : 
Provided further that, the matter shall not be
referred to the EBA after the end of the four-month
period or after a joint decision has been reached , and that
in the absence of an EBA decision within one month of
the referral of the matter, the decision of the Resolution
Committee or of the relevant European resolution
authority of the resolution entity shall apply. 
(5) (a) Where a joint decision is not taken
within four months because of a disagreement
concerning the level of the requirement referred to in
regulation 45F to be applied to any entity of a resolution
group on an individual basis, the decision shall be taken
by the Resolution Committee or the relevant European
resolution authority of the said entity, where all of the
following conditions are fulfilled: 
VERŻJONI ELETTRONIKA
B 70
(i)the views and reservations expressed in
writing by the European resolution authority of the
resolution entity have been duly taken into
account; and 
(ii)where the group-level resolution
authority is different from the resolution authority
of the resolution entity, the views and reservations
expressed in writing by the group-level resolution
authority have been duly taken into account. 
(b) Where, at the end of the four-month period,
the resolution authority of the resolution entity or the
group-level resolution authority has referred the matter
to EBA in accordance with Article 19 of Regulation
(EU) No 1093/2010, the resolution authorities
responsible for the subsidiaries on an individual basis
shall defer their decisions and await any decision that
EBA may take in accordance with Article 19(3) of the
said Regulation, and shall take their decisions in
accordance with the decision of EBA : 
Provided that, the four-month period shall be
deemed to be the conciliation period within the meaning
of Regulation (EU) No 1093/2010 : 
Provided further that, the matter shall not be
referred to the EBA after the end of the four-month
period or after a joint decision has been reached : 
(c) The relevant European resolution authority of
the resolution entity or the group-level resolution
authority shall not refer the matter to the EBA for
binding mediation where the level set by the resolution
authority of the subsidiary:
(a) is within 2 per cent of the total risk
exposure amount calculated in accordance with
Article 92(3) of the CRR of the requirement
referred to in regulation 45E; and 
(b) complies with regulation 45C(7) : 
Provided that , in the absence of an EBA
decision within one month, the decisions of the
resolution authorities of the subsidiaries shall apply :
Provided further that, the joint decision and
any decisions taken in the absence of a joint decision
shall be reviewed and where relevant , updated on a
regular basis .
VERŻJONI ELETTRONIKA
B 71
Adds new 
regulation 45I to 
the principal 
regulations.27. Immediately after regulation 45H of the principal
regulations there shall be added the following new regulation:(6) Where a joint decision is not taken within
four months because of a disagreement concerning the
level of the consolidated resolution group requirement
and the level of the requirement to be applied to the
resolution group’s entities on an individual basis, the
following shall apply: 
(a) a decision shall be taken on the level of
the requirement to be applied to the resolution
group's subsidiaries on an individual basis in
accordance with sub-regulation (5); 
(b) a decision shall be taken on the level of
the consolidated resolution group requirement in
accordance with sub-regulation (4).
(7) The joint decision referred to in sub-
regulation (1) and any decisions taken by the resolution
authorities referred to in sub-regulations (4), (5) and (6) ,
in the absence of a joint decision shall be binding on the
resolution authorities concerned : 
Provided that, the joint decision and any
decisions taken in the absence of a joint decision shall be
reviewed and where relevant , updated on a regular basis.
(8) The Resolution Committee, in coordination
with the Authority shall require and verify that entities
meet the requirement referred to in regulation 45(1), and
shall take any decision pursuant to this regulation in
parallel with the development and the maintenance of
resolution plans.".
"Supervisory 
reporting and 
public disclosure 
of the 
requirement.45I. (1) Institutions and entities referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , that are subject to the requirement
referred to in regulation 45( L) shall report to the
Authority and the Resolution Committee on the
following: 
(a) the amounts of own funds that, where
applicable, meet the conditions of paragraph (b) of
regulation 45F(2), and the amounts of eligible
liabilities, and the expression of those amounts in
accordance with regulation 45(2) after any
applicable deductions in accordance with Articles
72e to 72j of the CRR; 
(b) the amounts of other bail-inable
liabilities; and
VERŻJONI ELETTRONIKA
B 72
(c) for the items referred to in paragraphs
(a) and (b) above:
(i) their composition, including their
maturity profile; 
Cap. 371.(ii) their ranking in normal
insolvency proceedings in terms of article
29A of the Banking Act ; and
 (iii) whether they are governed by the
laws of a third country and, if so, which third
country, and whether they contain the
contractual terms referred to in regulation
55(1), points (p) and (q) of Article 52(1) and
points (n) and (o) of Article 63 of the CRR : 
Provided that, the obligation to report on the
amounts of other bail-inable liabilities referred to in
paragraph (b) shall not apply to entities that, at the date
of the reporting of that information, hold amounts of
own funds and eligible liabilities of at least 150 per cent
of the requirement referred to in regulation 45(1) as
calculated in accordance with paragraph (a).
(2) The institutions and entities referred to in
sub-regulation (1) shall report: 
(a) the information referred to in paragraph
(a) of sub-regulation (1), on at least a biannual
basis; and 
(b) the information referred to in
paragraphs (b) and (c) of sub-regulation (1) on at
least an annual basis : 
Provided that, notwithstanding the
provisions of this sub-regulation, at the request of
the Authority or the Resolution Committee, the
institutions or entities referred to in sub-regulation
(1) shall report the information referred to in sub-
regulation (1) on a more frequent basis. 
(3) Institutions or entities referred to in sub-
regulation (1) shall, on at least an annual basis, make the
following information publicly available: 
(a) the amounts of own funds that, where
applicable, meet the conditions of paragraph (b) of
regulation 45F(2) and eligible liabilities; 
Cap. 371.(b) the composition of the items referred to
in paragraph (a), including their maturity profile
and ranking in normal insolvency proceedings in
terms of article 29A of the Banking Act; and
VERŻJONI ELETTRONIKA
B 73
Adds new 
regulation 45J 
to the principal 
regulations.28.Immediately after regulation 45I of the principal
regulations there shall be added the following new regulation:
Adds new 
regulation 45K 
to the principal 
regulations.29.Immediately after regulation 45J of the principal
regulations there shall be added the following new regulation:(c) the applicable requirement referred to
in regulations  45E or 45F expressed in accordance
with regulation 45(2). 
(*) This sub-regulation shall enter into force on 1 January 2024.
(4) Sub-regulations (1) and (3) shall not apply to
institutions or entities whose resolution plan provides
that the institution or entity is to be wound up under
normal insolvency proceedings. 
(5) Where resolution actions have been
implemented or the write-down or conversion power
referred to in regulation 59 has been exercised, public
disclosure requirements referred to in sub-regulation (3)
shall apply from the date of the deadline to comply with
the requirements of regulation s 45E or 45F referred to in
regulation 45M.".
"Reporting to the 
EBA.
Cap. 371.
Cap. 370.45J.  The Resolution Committee shall inform the
EBA of the minimum requirement for own funds and
eligible liabilities that has been set, in accordance with
regulations 45E or 45F, for each institution and entity
licensed under the Banking Act and Investment Services
Act."
"Breaches of the 
minimum 
requirement for 
own funds and 
eligible liabilities.45K. (1) The Authority and the Resolution
Committee, as the case may be, shall address any breach
of the minimum requirement for own funds and eligible
liabilities referred to in regulations 45E or 45F on the
basis of at least one of the following: 
(a) powers referred to in regulation 16A; 
(b) powers to address or remove
impediments to resolvability in accordance with
regulations 17 and 18;
(c) early intervention measures in
accordance with regulation 27; 
(d) administrative penalties and other
administrative measures in accordance with
regulations 110 and 111;
(e) measures referred to in Article 104 of
the CRD: 
VERŻJONI ELETTRONIKA
B 74
Adds new 
regulation 45L 
to the principal 
regulations.30.Immediately after regulation 45K of the principal
regulations there shall be added the following new regulation:Provided that, the Authority and the
Resolution Committee, as the case may be, may also
carry out an assessment of whether the institution or
entity referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) is failing or is
likely to fail, in accordance with regulations 32, 32A or
33, as applicable. 
(2) The Authority and the Resolution
Committee shall consult each other when they exercise
their respective powers referred to in sub-regulation
(1)."; 
"Transitional and 
post-resolution 
arrangements.45L. (1) By way of derogation from regulation
45(1), the Resolution Committee shall determine
appropriate transitional periods for institutions or
entities referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) , to comply with the
requirements in regulations 45E or 45F or with
requirements that result from the application of
regulation 45B(4), (5) or (7), as appropriate. Institutions
and entities are obliged to comply with the requirements
in regulations 45E or 45F , or the requirements that
result from the application of regulation 45B(4), (5) or
(7) by not later than 1st January, 2024: 
Provided that, the Resolution Committee
shall determine intermediate target levels for the
requirements set out in regulations 45E or 45F , or for
requirements that result from the application of
regulation 45B(4), (5) or (7), as appropriate, that
institutions or entities referred to in paragraphs (b), (c)
or (d) of the definition "entity" in regulation 2(1) shall
be required to comply with as at 1 January 2022. The
intermediate target levels, as a rule, shall ensure a linear
build-up of own funds and eligible liabilities towards
the requirement : 
Provided further that, the Resolution
Committee may set a transitional period that ends after
1st January 2024 where duly justified and appropriate ,
on the basis of the criteria referred to in sub-regulation
(7), taking into account: 
(a) the development of the entity’ s
financial situation; 
VERŻJONI ELETTRONIKA
B 75
(b) the prospect that the entity will be able
to ensure compliance in a reasonable timeframe
with the requirements in regulation 45E or 45F , or
with a requirement that results from the
application of regulation 45B(4), (5) or (7); and 
(c) whether the entity is able to replace
liabilities that no longer meet the eligibility or
maturity criteria laid down in Articles 72b and 72c
of the CRR, and regulation 45B or 45F(2), and if
not, whether that inability is of an idiosyncratic
nature or is due to market-wide disturbance. 
(2) The deadline for resolution entities to
comply with the minimum level of the requirements
referred to in regulation 45C(5) or (6) shall be 1st
January 2022. 
(3) The minimum levels of the requirements
referred to in regulation 45C(5) and (6) shall not apply
within the two-year period following the date: 
(a) on which the Resolution Committee
has applied the bail-in tool; or 
(b) on which the resolution entity has put
in place an alternative private sector measure as
referred to in paragraph (b) of regulation 32(1) by
which capital instruments and other liabilities
have been written down or converted into
Common Equity Tier 1 instruments, or on which
write down or conversion powers in accordance
with regulation 59, have been exercised in respect
of that resolution entity, in order to recapitalise the
resolution entity without the application of
resolution tools. 
(4) The requirements referred to in regulation
45B(4) and (7) as well as regulation 45C(5) and (6), as
applicable, shall not apply within the three-year period
following the date on which the resolution entity or the
group of which the resolution entity is part has been
identified as a G-SII, or the resolution entity starts to be
in the situation referred to in regulation 45C(5) or (6). 
VERŻJONI ELETTRONIKA
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Amends 
regulation 46 
of the principal 
regulations.31.In regulation 46 of the principal regulations the words
"eligible liabilities" , wherever they occur, shall be substituted by the
words "bail-inable liabilities";(5) By way of derogation from regulation 45(1),
the Resolution Committee shall determine an
appropriate transitional period within which to comply
with the requirements of regulation 45E or 45F, or a
requirement resulting from the application of regulation
45B(4), (5) or (7), as appropriate, for institutions or
entities referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) , to which
resolution tools or the write-down or conversion power
referred to in regulation 59 have been applied.
(6) For the purposes of sub-regulation s (1) to
(5), the Resolution Committee shall communicate to the
institution or entity referred to in paragraphs (b), (c) or
(d) of the definition "entity" in regulation 2(1) a planned
minimum requirement for own funds and eligible
liabilities for each twelve month period during the
transitional period, with a view to facilitating a gradual
build-up of its loss-absorbing and recapitalisation
capacity: 
Provided that, at the end of the transitional
period, the minimum requirement for own funds and
eligible liabilities shall be equal to the amount
determined under regulation 45B(4), (5) or (7),
regulation 45C(5) or (6), regulation 45E or regulation
45F, as applicable.
 (7) When determining the transitional periods,
the Resolution Committee shall take into account:
(a) the prevalence of deposits and the
absence of debt instruments in the funding model;
(b) the access to the capital markets for
eligible liabilities; 
(c) the extent to which the resolution
entity relies on Common Equity Tier 1 capital to
meet the requirement referred to in regulation
45E. 
(8) Subject to sub-regulation (1), the Resolution
Committee shall not be prevented from subsequently
revising either the transitional period or any planned
minimum requirement for own funds and eligible
liabilities communicated under sub-regulation (6).".
VERŻJONI ELETTRONIKA
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Amends  
regulation 47 
of the principal 
regulations.32.In paragraph (b)(ii) of sub-regulation (1) of regulation 47 of
the principal regulations the words "eligible liabilities" shall be
substituted by the words "bail-inable liabilities".
Amends  
regulation 48 
of the principal 
regulations.33.Regulation 48 of the principal regulations shall be amended
as follows: 
(a) paragraph (e) of sub-regulation (1) thereof , shall be
substituted by the following:
Cap. 371."(e) if, and only if, the total reduction of shares or
other instruments of ownership, relevant capital
instruments and bail-inable liabilities pursuant to
paragraphs (a) to (d) is less than the sum of the amounts
referred to in regulation 47(3)(b) and (c), the Resolution
Committee reduces to the extent required the principal
amount of, or outstanding amount payable in respect of, the
rest of bail-inable liabilities, including debt instruments
referred to in article 29A(3A) of the Banking Act, in
accordance with the hierarchy of claims in normal
insolvency proceedings, including the ranking of deposits
provided for in article 29A of the Banking Act, pursuant to
regulation 44, in conjunction with the write down pursuant
to paragraphs (a) to (d) to produce the sum of the amounts
referred to in regulation 47(3) (b) and (c).";
(b) in sub-regulation (2) thereof , the words "eligible
liabilities" , wherever they occur, shall be substituted by the
words "bail-inable liabilities"; 
(c) immediately after sub-regulation (5) thereof, there
shall be added the following new sub-regulation:
"(6)In relation to institutions or entities referred to
in paragraphs (a), (b), (c) or (d) of the definition "entity" in
regulation 2(1), all claims resulting from own funds items
have, in terms of Maltese insolvency law, a lower priority
ranking than any claim that does not result from an own
funds item : 
Provided that, to the extent that an instrument is
only partly recognised as an own funds item, the whole
instrument shall be treated as a claim resulting from an own
funds item and shall rank lower than any claim that does
not result from an own funds item.".
VERŻJONI ELETTRONIKA
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Substitutes 
regulation 55 of 
the principal 
regulations.34.Regulation 55 of the principal regulations shall be
substituted by the following: 
"55. (1) Institutions and entities referred to in
paragraphs (b), (c) and (d) of the definition "entity" in regulation
2(1) shall include a contractual term by which the creditor or
party to the agreement creating the liability recognises that such
liability may be subject to write-down and conversion powers
and agrees to be bound by any reduction of the principal or
outstanding amount due, conversion or cancellation that is
effected by the exercise of those powers by the Resolution
Committee, provided that such liability complies with all of the
following conditions:
(a) the liability is not excluded under regulation
44(2);
Cap. 371.(b) the liability is not a deposit referred to in article
29A(3) of the Banking Act;
(c) the liability is governed by the law of a third
country; and
(d) the liability is issued or entered into after the
date on which these regulations shall come into force:
Provided that, the Resolution Committee may
decide that the obligation in this regulation shall not apply
to institutions or entities in respect of which the
requirement under regulation 45(1) equals the loss
absorption amount as defined under paragraph (a) of
regulation 45C(2). However liabilities that meet the
conditions referred to in this sub-regulation and which do
not include the contractual term referred to in this sub-
regulation are not counted towards that requirement:
Provided further that, this sub-regulation shall not
apply where the Resolution committee determines that the
liabilities or instruments referred to in this sub-regulation
can be subject to write-down and conversion powers by the
Resolution Committee pursuant to the law of the third
country or to a binding agreement concluded with that third
country.
(2) (a) The Resolution Committee shall ensure that where an
institution or entity referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) reaches the determination that is
legally or otherwise impracticable to include in the contractual
VERŻJONI ELETTRONIKA
B 79
provisions governing a relevant liability a term required in accordance
with sub-regulation (1), the institution or entity mentioned above
notifies its determination, including the designation of the class of the
liability and the justification of that determination, to the Resolution
Committee:
Provided that, the institution or entity mentioned above
shall submit to the Resolution Committee all information that the said
Resolution Committee requests, within a reasonable time frame
following the receipt of the notification, in order for the Resolution
Committee to assess the effect of such notification on the resolvability
of that institution or entity:
Provided further that, in the case of a notification under
paragraph (a) of sub-regulation (2), the obligation to include a term
required in accordance with sub-regulation (1) in the contractual
provisions is automatically suspended from the moment of receipt by
the Resolution Committee of the notification.
(b) Where the Resolution Committee concludes that it is
not legally or otherwise impracticable to include in the contractual
provisions a term required in accordance with sub-regulation (1),
taking into account the need to ensure the resolvability of the
institution or entity referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1), the Resolution Committee shall
require, within a reasonable timeframe, the inclusion of such
contractual term, following the notification pursuant to paragraph (a),
the inclusion of such contractual term:
Provided that, the Resolution Committee may, in addition,
require the said institution or entity to amend its practices concerning
the application of the exemption from the contractual recognition of
bail-in.
Cap. 371.(c) The liabilities referred to in paragraph (a) of sub-
regulation (2), shall not include Additional Tier 1 instruments, Tier 2
instruments and debt instruments referred to under paragraph (a) of
article 29A(5) of the Banking Act, where those instruments are
unsecured liabilities:
Cap. 371. Provided that, the liabilities referred to in sub-regulation
(2)(a) shall be senior to the liabilities referred to in article 29A(3A)
and (4) of the Banking Act. 
(d) Where the Resolution Committee, in the context of
the assessment of the resolvability of an institution or entity
referred to in paragraphs (b), (c) or (d) of the definition "entity"
in regulation 2(1), in accordance with regulations 15 and 16, or
VERŻJONI ELETTRONIKA
B 80
at any other time, determines that, within a class of liabilities
which includes eligible liabilities, the amount of liabilities that,
in accordance with sub-regulation (2)(a), do not include the
contractual term referred to in sub-regulation (1), together with
the liabilities which are excluded from the application of the
bail-in tool in accordance with regulation 44(2), or which are
likely to be excluded in accordance with provided in regulation
73, when applying write-down and conversion powers to eligible
liabilities.
(e) Where the Resolution Committee concludes, on the
basis of the assessment referred to in paragraph (d), that the
liabilities which, in accordance with sub-regulation 2(a), do not
include the contractual term referred to in sub-regulation (1),
create a substantive impediment to resolvability, it shall apply
the powers provided in regulation 17 , as appropriate , to remove
that impediment to resolvability. 
(f) Liabilities resulting from the institution or entity
referred to in paragraphs (b), (c) or (d) of the definition "entity"
in regulation 2(1) , fail to include in the contractual provisions the
term required by sub-regulation (1), or for which, in accordance
with this sub-regulation, that requirement does not apply, shall
not be counted towards the minimum requirement for own funds
and eligible liabilities. 
(3) The Resolution Committee may require institutions or
entities referred to in paragraphs (b), (c) or (d) of the definition
"entity" in regulation 2(1) , to provide authorities with a legal opinion
relating to the legal enforceability and effectiveness of the contractual
term referred to in sub-regulation (1). 
(4) Where an institution or entity referred to in paragraphs (b),
(c) or (d) of the definition "entity" in regulation 2(1) , does not include
in the contractual provisions governing a  relevant liability a
contractual term required in accordance with sub-regulation (1), that
shall not prevent the Resolution Committee from exercising the write-
down and conversion powers in relation to that liability. 
(5) The Resolution Committee shall specify, where it deems
necessary, the categories of liabilities for which an institution or entity
referred to in paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , may reach the determination that it is legally or
otherwise impracticable to include the contractual term referred to in
sub-regulation (1), based on the conditions further specified by the
EBA as a result of the application of article 55(6) of the BRRD.".
VERŻJONI ELETTRONIKA
B 81
Amends 
regulation 59 of 
the principal 
regulations.35.Regulation 59 of the principal regulations shall be amended
as follows: 
(a) in the marginal note thereof , the words "Requirement
to write down or convert capital instruments" shall be substituted
by the words "Requirement to write-down or convert relevant
capital instruments and eligible liabilities.";
(b)sub-regulation (1) thereof , shall be substituted by the
following: 
 "(1) The power to write-down or convert relevant
capital instruments and eligible liabilities may be exercised
either: 
(a) independently of resolution action; or
(b) in combination with a resolution action,
where the conditions for resolution specified in
regulations 32, 32A or 33 are met :
Provided that, where relevant capital
instruments and eligible liabilities have been purchased by
the resolution entity indirectly through other entities in the
same resolution group, the power to write-down or convert
those relevant capital instruments and eligible liabilities
shall be exercised together with the exercise of the same
power at the level of the parent undertaking of the entity
concerned or at the level of other parent undertakings that
are not resolution entities, so that the losses are effectively
passed on to, and the entity concerned is recapitalised by,
the resolution entity:
Provided further that, after the exercise of the
power to write-down or convert relevant capital
instruments and eligible liabilities independently of
resolution action, the valuation provided in regulation 74
shall be carried out, and regulation 75 shall apply.";
(c) immediately after sub-regulation (1) thereof, there
shall be added the following new sub-regulations: 
"(1A)The power to write-down or convert
eligible liabilities independently of resolution action may
be exercised only in relation to eligible liabilities that meet
the conditions referred to in regulation 45F(2) , except the
condition related to the maturity of liabilities as set out in
Article 72c(1) of the CRR:
VERŻJONI ELETTRONIKA
B 82
Provided that , the Resolution Committee shall
when the power mentioned above is exercised, ensure that
the write-down or conversion is done in accordance with
the principle referred to in paragraph (g) of regulation
34(1);
(1b) Where a resolution action in relation to a
resolution entity or, in exceptional circumstances in
deviation from the resolution plan, in relation to an entity
that is not a resolution entity, the amount that is reduced,
written or converted in accordance with regulation 60(1) at
the level of such entity , shall count towards the thresholds
laid down in regulation 37(10) and paragraph (a) of
regulation 44(5), or paragraph (a) of regulation 44(8) that
apply to the entity concerned.";
(d)in sub-regulation (2) thereof, the words" capital
instruments," shall be substituted by the words" capital
instruments, and eligible liabilities as referred to in sub-
regulation (1 A)";
(e) sub-regulation (3) thereof , shall be amended as
follows: 
(i) The introductory paragraph of sub-regulation
(3) thereof , shall be substituted by the following: 
"(3) The Resolution Committee shall exercise
the write-down or conversion power, in accordance
with regulation 60 and without delay, in relation to
relevant capital instruments, and eligible liabilities as
referred to in sub-regulation (1a), issued by an
institution or entity referred to in paragraphs (b), (c)
or (d) of the definition "entity" in regulation 2(1) ,
when one or more of the following circumstances
apply:"; 
(ii) paragraphs (a) and (b) of sub-regulation (3)
thereof shall be substituted by the following: 
"(a) Where the determination has been made
that the conditions for resolution specified in
regulations 32, 32A or 33 have been met, before any
resolution action is taken; or
(b) The appropriate authority determines that
unless that power is exercised in relation to the
VERŻJONI ELETTRONIKA
B 83
relevant capital instruments and eligible liabilities as
referred to in sub-regulation (1 A), the institution or
entity referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) will no longer be
viable;";
(f)in sub-regulations (4) and (10) thereof, the words
"capital instruments" , wherever they occur, shall be substituted
by the words "capital instruments, or eligible liabilities as
referred to in sub-regulation (1 A).".
Amends 
regulation 60 of 
the principal 
regulations.36.Regulation 60 of the principal regulations shall be amended
as follows:
(a) in the marginal note thereof , the words "Provisions
governing the write-down o r conversion of capital instruments"
shall be substituted by the words "Provisions governing the
write-down or conversion of relevant capital instruments and
eligible liabilities.";
(b) immediately after paragraph (c) of sub-regulation (1)
thereof, there shall be added the following new paragraph:
 "(d) The principal amount of eligible liabilities
referred to in regulation 59(1 A) is written down and
converted into Common Equity Tier 1 instruments or both,
to the extent required to achieve the resolution objectives
set out in regulation 31 , or to the extent of the capacity of
the relevant eligible liabilities, whichever is lower.";
(c) sub-regulation (2) thereof , shall be substituted by the
following:
 "(2) Where the principal amount of a relevant
capital instrument, or an eligible liability as referred to in
regulation 59(1 A) is written down: 
(a) the reduction of that principal amount
shall be permanent, subject to any write up in
accordance with the reimbursement mechanism in
regulation 46(3);
 (b) no liability to the holder of the relevant
capital instrument, or of the eligible liability as
referred to in regulation 59(1 A) shall remain under or
in connection with that amount of the instrument,
which has been written down, except for any liability
already accrued, and any liability for damages that
VERŻJONI ELETTRONIKA
B 84
may arise as a result of an appeal challenging the
legality of the exercise of the write-down power;
(c) no compensation is paid to any holder of
the relevant capital instruments, or of the liabilities as
referred to in regulation 59(1 A), other than in
accordance with sub-regulation (3)."; 
(d)  sub-regulation (3) thereof, shall be amended as
follows:
(i)  the introductory paragraph of sub-regulation
(3) thereof , shall be substituted by the following: 
"(3) In order to effect a conversion of relevant
capital instruments, and eligible liabilities as referred
to in regulation 59(1 A), under paragraphs (b), (c) and
(d) of sub-regulation (1), the Resolution Committee
may require institutions and entities referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , to issue Common Equity Tier 1
instruments to the holders of the relevant capital
instruments and such eligible liabilities :
Provided that relevant capital instruments
and such liabilities may only be converted where the
following conditions are met:"
(ii) in paragraph (d) thereof,  the words "each
relevant capital instrument" shall be substituted by the
words "each relevant capital instrument, or each eligible
liability as referred to in regulation 59(1 A)". 
Amends 
regulation 61 of 
the principal 
regulations.37.Immediately after sub-regulation (1) of regulation 61 of the
principal regulations there shall be added the following new sub-
regulation (1A) :
"(1A)Where the relevant capital instruments, or eligible
liabilities as referred to in regulation 59(1a), are recognised for the
purposes of meeting the requirement referred to in regulation 45F(1),
the appropriate authority responsible for making the determination
referred to in regulation 59(3), shall be the appropriate authority of the
Member State where the institution or entity referred to in paragraphs
(b), (c) or (d) of the definition "entity" in regulation 2(1), has been
authorised in accordance with Title III of the CRD.". 
VERŻJONI ELETTRONIKA
B 85
Amends 
regulation 62 
of the principal 
regulations .38.Regulation 62 of the principal regulations shall be amended
as follows: 
(a)sub-regulation (1) thereof , shall be substituted by the
following:
 "(1)Before making a determination referred to in
paragraph (b), (c), (d) or (e) of regulation 59(3) in relation
to a subsidiary that issues relevant capital instruments, or
eligible liabilities as referred to in regulation 59(1a), for the
purposes of meeting the requirement referred to in
regulation 45F on an individual basis , or relevant capital
instruments that are recognised for the purposes of meeting
the own funds requirements on an individual or
consolidated basis, an appropriate authority complies with
the following requirements: 
(a) when considering whether to make a
determination referred to in paragraphs (b), (c), (d) or
(e) of regulation 59(3) after consulting the Resolution
Committee , or a European regulatory authority acting
as the resolution authority of the relevant resolution
entity, it notifies, within twenty-four hours of
consulting that authority: 
(i) where the Authority is the
consolidating supervisor, the Authority; or,
where the Authority is not the consolidating
supervisor, the European regulatory authority
acting as the consolidating supervisor and, if
different, the appropriate authority in the
Member State where the consolidating
supervisor is located; 
(ii) the Resolution Committee or
European Resolution authorities of other
entities within the same resolution group,
whichever is the case, that directly or indirectly
purchased liabilities referred to in regulation
45F(2) from the entity that is subject to
regulation 45F(1); and
(b) when considering whether to make a
determination referred to in paragraph (c) of
regulation 59(3), it notifies, without delay:
(i) where the Authority responsible for
VERŻJONI ELETTRONIKA
B 86
an institution or entity referred to in paragraphs
(b), (c) or (d) of the definition "entity" in
regulation 2(1) , that has issued the relevant
capital instruments in relation to which the
write down or conversion powers are to be
exercised if that determination were made, the
Authority, the European regulatory authorities
responsible for the other institutions or entities
referred to in paragraphs (b), (c) or (d) of the
definition "entity" in regulation 2(1) that has
issued the relevant capital instruments in
relation to which the write down or conversion
powers are to be exercised if that determination
were made, if any, and if different, the overseas
appropriate authorities in the Member States
where those European regulatory authorities
and the consolidating supervisor are located; or 
(ii)where the Authority is not
responsible for such institutions or entities, the
European regulatory authorities responsible for
the institutions or entities referred to in
paragraphs (b), (c), or (d) of the definition
"entity" in regulation 2(1) that have issued the
relevant capital instruments in relation to which
the write down or conversion power is to be
exercised if that determination were made; and
if different, the overseas appropriate authorities
in the Member States where those European
regulatory authorities and the consolidating
supervisor are located. 
(c)in sub-regulation (4) thereof, the words
"after consulting the authorities notified, shall assess
the following matters:" shall be substituted by the
words, "after consulting the authorities notified in
accordance with paragraph (a)(i) or (b) of sub-
regulation (1), shall assess the following matters:". 
Amends 
regulation 63 of 
the principal 
regulations.39.In paragraphs (e), (f) and (j) of sub-regulation (1) of
regulation 63 of the principal regulations the words "eligible
liabilities" , wherever they occur, shall be substituted by the words
"bail-inable liabilities";
Amends 
regulation 66 of 
the principal 
regulations. 40.In sub-regulation (4) of regulation 66 of the principal
regulations the words "eligible liabilities" shall be substituted by the
words "bail-inable liabilities.".
VERŻJONI ELETTRONIKA
B 87
Amends 
regulation 68 of 
the principal 
regulations. 41.Regulation 68 of the principal regulations shall be amended
as follows: 
(a)the introductory paragraph of sub-regulation (3)
thereof, shall be substituted by the following: 
 "(3) Where the substantive obligations under the
contract, including payment and delivery obligations, and
provision of collateral, continue to be performed, a crisis
prevention measure, a suspension of obligation under
regulation 33B or a crisis management measure, including
the occurrence of any event directly linked to the
application of such a measure, shall not, in itself, make it
possible for anyone to:";
(b)sub-regulation (5) thereof , shall be substituted by the
following: 
 "(5) A suspension or restriction under regulations
33B, 69, or 70 shall not constitute non-performance of a
contractual obligation for the purposes of sub-regulations
(1) and (3) and of regulation 71(1).".
Amends 
regulation 69 of 
the principal 
regulations.42.Regulation 69 of the principal regulations shall be amended
as follows: 
(a)sub-regulation (4) thereof , shall be substituted by the
following: 
 "(4) Any suspension under sub-regulation (1) , shall
not apply to payment and delivery obligations owed to the
following: 
(a) systems and operators of systems
designated in accordance with Directive 98/26/EC; 
(b) central counterparties authorised in the
European Union pursuant to Article 14 of Regulation
(EU) No 648/2012 and third-country central
counterparties recognised by ESMA pursuant to
Article 25 of the said Regulation; 
(c) central banks.";
(b)immediately after sub-regulation (5) thereof , there
shall be added the following new proviso: 
"Provided that , the Resolution Committee shall
VERŻJONI ELETTRONIKA
B 88
set the scope of that power having regard to the
circumstances of each case and shall carefully assess the
appropriateness of extending the suspension to eligible
deposits, especially to covered deposits held by natural
persons and micro, small and medium-sized enterprises :
Provided further that, where the power to
suspend payment or delivery obligations is exercised in
respect of eligible deposits, the Resolution Committee shall
ensure that depositors have access to an appropriate daily
amount from those deposits.".
Amends 
regulation 70 of 
the principal 
regulations. 43.Sub-regulation (2) of regulation 70 of the principal
regulations shall be substituted by the following: 
"(2) The Resolution Committee shall not exercise the
power referred to in sub-regulation (1) , in relation to any security
interest of systems or operators of systems designated for the
purposes of Directive 98/26/EC, central counterparties
authorised in the Union pursuant to Article 14 of Regulation
(EU) No 648/2012 and third-country central counterparties
recognised by ESMA pursuant to Article 25 of Regulation (EU)
No 648/2012, and central banks, over assets pledged or provided
for by way of margin or collateral by the institution under
resolution.".
Amends 
regulation 71 of 
the principal 
regulations.44.Sub-regulation (3) of regulation 71 of the principal
regulations shall be substituted by the following:
 "(3) Any suspension under sub-regulation (1) or (2) shall
not apply to systems or operators designated for the purposes of
Directive 98/26/EC, central counterparties authorised in the
Union pursuant to Article 14 of Regulation (EU) No 648/2012
and third-country central counterparties recognised by ESMA
pursuant to Article 25 of Regulation (EU) No 648/2012, or
central banks.". 
Adds new 
regulation 71A 
to the principal 
regulations.45.Immediately after regulation 71 of the principal regulations
VERŻJONI ELETTRONIKA
B 89
there shall be added the following new regulation:
"Contractual 
recognition of 
resolution stay 
powers.71A. (1) The institutions and entities referred to
in paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) shall include, in any financial contract
which they enter into and which is governed by third-
country law, terms which the parties recognise that the
financial contract may be subject to the exercise of
powers by the Resolution Committee to suspend or
restrict rights and obligations under regulations 33A,
69, 70 and 71 , and recognise that they are bound by the
requirements of regulation 68. 
(2) The Resolution Committee shall also require
that Union parent undertakings ensure that their third-
country subsidiaries include, in the financial contracts
referred to in sub-regulation (1), terms to exclude that
the exercise of the power of the Resolution Committee
to suspend or restrict rights and obligations of the
Union parent undertaking, in accordance with sub-
regulation (1), constitutes a valid ground for early
termination, suspension, modification, netting, exercise
of set-off rights or enforcement of security interests on
those contracts : 
Provided that, the requirement in sub-
regulation (1) may apply in respect of third-country
subsidiaries which are: 
(a) credit institutions;
(b) investment firms (or which would be
investment firms if they had a head office in the
relevant Member State); or 
(c) financial institutions. 
(3) Sub-regulation (1) shall apply to any
financial contract which: 
(a) creates a new obligation, or materially
amends an existing obligation after the entry into
force of the provisions of this regulation;
(b) provides for the exercise of one or
more termination rights or rights to enforce
security interests to which regulation 33 B, 68, 69,
70 or 71 would apply if the financial contract
were governed by the laws of a Member State. 
VERŻJONI ELETTRONIKA
B 90
Amends 
regulation 88 of 
the principal 
regulations.46.Sub-regulation (1) of regulation 88 of the principal
regulations, shall be amended as follows: 
(a)  the words "Where the Resolution Committee is" ,
shall be substituted by the words "Subject to regulation 89,
where the Resolution Committee is" and the words " regulations
12, 13, 16, 18, 45, 91 and 92, and" shall be substituted by the
words "regulations 12, 13, 16, 45, 45A to 45H, 91 and 92, and" ;
and 
(b)in sub-paragraph (i) thereof, the words "regulation
45" shall be substituted by the words "regulations 45, 45A to
45H.";
Amends 
regulation 89 of 
the principal 
regulations.47.Regulation 89 shall be substituted by the following:
"89. (1) Where a third-country institution or third-
country parent undertaking has subsidiaries established in the
Union or Union parent undertakings established in Malta and at
least another Member State, or two or more Union branches that
are regarded as significant by Malta and at least another Member
State, the Resolution Committee together with the European
resolution authority where those entities are established or where
those significant branches are located shall establish one single
European resolution college. 
(2) The European resolution college referred to in sub-
regulation (1) shall perform the functions and carry out the tasks
specified in regulation 88 with respect to the entities referred to
in sub-regulation (1) and, in so far as those tasks are relevant, to
their branches:
Provided that , the tasks referred to in this sub-
regulation shall include the setting of the requirement referred to
in regulations 45 and 45A to 45H in relation to which the
members of the European resolution college shall take into
consideration the global resolution strategy, if any, adopted by
third-country authorities when setting the said requirement : 
 Provided further that , where in accordance with the(4) Where an institution or entity referred to in
paragraphs (b), (c) or (d) of the definition "entity" in
regulation 2(1) , does not include the contractual term
required in accordance with sub-regulation (1), that
shall not prevent the Resolution Committee from
applying the powers referred to in regulations 33A, 68,
69, 70 or 71 in relation to that financial contract.";
VERŻJONI ELETTRONIKA
B 91
global resolution strategy, subsidiaries established in the Union
or a Union parent undertaking and its subsidiary institutions are
not resolution entities and the members of the European
resolution college agree with that strategy, subsidiaries
established in the Union or, on a consolidated basis, the Union
parent undertaking shall comply with the requirement of
regulation 45F(1) by issuing instruments referred to in
paragraphs (a) and (b) of regulation 45F(2) to their ultimate
parent undertaking established in a third country, or to the
subsidiaries of that ultimate parent undertaking that are
established in the same third country or to other entities under
the conditions set out in paragraphs (a)(i) and (b)(ii) of
regulation 45F(2). 
(3) Where only one Union parent undertaking holds all Union
subsidiaries of a third-country institution or third-country parent
undertaking, the European resolution college shall be chaired by the
resolution authority of the Member State where the Union parent
undertaking is established: 
Provided that , where sub-regulation (5) does not apply, the
resolution authority of a Union parent undertaking or a Union
subsidiary with the highest value of total on-balance sheet assets held
shall chair the European resolution college. 
(4) Malta together with other relevant Member States may, by
mutual agreement of all of the relevant parties, waive the requirement
to establish a European resolution college if another group or college
performs the same functions and carries out the same tasks specified in
this regulation and complies with all of the conditions and procedures,
including those covering membership and participation in European
resolution colleges, established in Article s 89 and 90 of the BRRD: 
Provided that, in such a case, all references to European
resolution colleges in these regulations shall also be understood as
references to those other groups or colleges. 
(5) Subject to sub-regulations ( 3) and (4), the European
resolution college shall otherwise function in accordance with Article
88 of the BRRD.". 
Amends the 
Schedule 
annexed to the 
principal 
regulations.48.The Schedule annexed to the principal regulations shall be
amended as follows: 
(a) in paragraph (6) of Section B thereof , the words
"eligible liabilities :" shall be substituted by the words "bail-
inable liabilities :"; 
VERŻJONI ELETTRONIKA
B 14
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(b) in paragraph (17) of Section C thereof , the words
"eligible liabilities" shall be substituted by the words "bail-inable
liabilities".
VERŻJONI ELETTRONIKA