Effective from Jun 16 2021 - Jun 15 2021 To view other versions open the versions tab on the right
1.
The SIFI must fulfil the following conditions for any resolution procedure:
a)
The SIFI suffers or is likely to suffer a crisis that would threaten its existence and its ability to fulfil its obligations.
b)
The SIFI experiences difficulty in fulfilling its obligations within an appropriate time, which threatens its existence if resolution procedures are not invoked.
c)
The resolution procedures would achieve any of the objectives of the Law.
d)
The resolution procedures would be a better alternative to dissolution of the SIFI.
2.
For the purpose of implementing this Article, a crisis threatening the SIFI’s existence and ability to fulfil its obligations shall include:
a)
Lack of financial and administrative resources necessary to ensure financial adequacy, cash flow, risk management, or the management of the institution, and achieve the standing obligations under the license that, if not available, would justify its revocation.
b)
The value of assets falls below the value of liabilities or is likely to fall in the near future.
c)
Inability or expected inability to settle its debts upon maturity.
