On May 26, 2015, the EBA published its final guidelines on the circumstances in which an institution shall be considered as “failing or likely to fail” under the BRRD. The guidelines are aimed at national regulators and resolution authorities who will determine at their discretion whether an institution is failing or likely to fail. The guidelines set out the broad elements that should be taken into account for such a determination, namely: (i) a current or likely infringement of the requirements for continuing authorization in a way that would justify the withdrawal of authorization; (ii) assets currently lower or likely to be lower than liabilities; (iii) a current or likely inability to pay debts or other liabilities as they fall due; and (iv) a need for extraordinary public financial support.The guidelines will apply from January 1, 2016.

The guidelines are available at: http://www.eba.europa.eu/documents/10180/1085517/EBA-GL-2015- 07+GL+on+failing+or+likely+to+fail.pdf