The EU Bank Recovery and Resolution Directive (2014/59/EU) (BRRD) provides us with a set of tools for dealing with failing banks. The BRRD allows firms or holding companies, and their subsidiaries that are institutions or financial institutions covered by the consolidated supervision of the parent, to enter into an agreement ex ante to provide financial support to an institution that meets conditions for early intervention, provided certain safeguards are met. This support could, for example, be in the form of a loan, a guarantee or assets to use as collateral.
Applying for approval of intra-group financial support
Before a firm or holding company for which we are the European Economic Area (EEA) consolidating supervisor enters into an intra-group financial support agreement, it must obtain our approval.
Send your application to PRA-Waivers@bankofengland.co.uk.
Notifying us of intention to provide intra-group financial support
Once permission to provide intra-group financial support has been granted, the firm or holding company must notify us. This is in line with the notification requirements set out in Chapter 6 of the group financial support part of the PRA Rulebook.
Send your notification to PRA-Waivers@bankofengland.co.uk.
A firm or holding company that has notified us may only provide financial support if we have agreed to the provision of the financial support or we have not, within five business days of receiving the complete notification, prohibited or restricted the provision of the financial support.