(a)

the counterparty is an institution, financial institution or ancillary services undertaking subject to appropriate prudential requirements;

(b)

the counterparty requesting the permission is established in the same Member State.

(a)

the shareholding or legal structure of the members could hamper the transferability of own funds or repayment of liabilities;

(b)

the formal decision-making process regarding the transfer of own funds between members ensures prompt transfers;

(c)

the by-laws of the members, any shareholder's agreement, or any other known agreements contain any provisions that could obstruct the transfer of own funds or repayment of liabilities by the counterparty;

(d)

there have been any serious management difficulties or corporate governance issues related to the members, which could have a negative impact on the prompt transfer of own funds or the repayment of liabilities;

(e)

any third parties (6) are able to exercise control over or prevent the prompt transfer of own funds or repayment of liabilities;

(f)

there are any indications from the past regarding flows of funds between members which demonstrate the ability to promptly transfer funds or repay liabilities.

(a)

the arrangements include a broad range of measures, processes and mechanisms, making up the framework under which the IPS operates. This framework should comprise a series of possible actions, ranging from less intrusive to more substantial measures that are proportionate to the riskiness of the beneficiary institution and the severity of its financial constraints, including direct capital and liquidity support. The support may be conditional, for example on the implementation of certain recovery and restructuring measures by the institution;

(b)

the IPS's governance structure and the process for making decisions on support measures allow support to be provided in a timely manner;

(c)

a clear commitment exists to provide support when, despite previous monitoring of risks and early intervention measures, a member is or is likely to become insolvent or illiquid and to ensure that its members abide by the relevant regulatory own funds and liquidity requirements;

(d)

the IPS conducts stress tests at regular intervals to quantify potential capital and liquidity support measures;

(e)

the IPS's risk-absorbing capacity (consisting of paid-up funds, potential ex post contributions and comparable commitments) is sufficient to cover potential support measures taken in respect of its members;

(f)

an ex ante fund has been created to ensure that the IPS has funds for support measures readily available, and

(a)

the IPS members are obliged to provide the IPS's main management body with up-to-date data on their risk situations at regular intervals, including information on their own funds and own funds requirements;

(b)

corresponding appropriate data flows and IT systems are in place;

(c)

the IPS main management body lays down uniform standards and methodologies for the risk management framework to be applied by the members;

(d)

for the purposes of the monitoring and classification of risk by the IPS there is a common definition of risks, the same risk categories are monitored for all members, and the same confidence level and time horizon is used for the quantification of risks;

(e)

the IPS systems for the monitoring and classification of risks classify the members in accordance with their risk situation, i.e. the IPS has defined different categories to which to assign its members to allow early intervention;

(f)

the IPS is able to influence the risk situation of its members by issuing instructions and recommendations, etc., to them, for example to restrict certain activities or to require a reduction of certain risks.

(a)

the IPS assesses at regular intervals the risks and vulnerabilities of the sector to which its members belong;

(b)

the results of the risk review are summarised in a report or other document and are distributed to the relevant decision-making bodies of the IPS and/or the members shortly after they have been finalised;

(c)

members are informed of their risk classification by the IPS as required by Article 113(7)(c).

(a)

the consolidated or aggregated report is audited by an independent external auditor on the basis of the relevant accounting framework or, if applicable, the aggregation method;

(b)

the external auditor is required to provide an audit opinion;

(c)

all of the IPS members and any subsidiaries, any intermediary structures such as holding companies and the entity managing the IPS itself (if it is a legal entity) are included in the scope of consolidation/aggregation;

(d)

in cases where the IPS draws up a report comprising an aggregated balance sheet and an aggregated profit and loss account, the aggregation method can ensure that all intragroup exposures are eliminated.

(a)

the external auditor who is responsible for the audit of the consolidated or aggregated financial report can confirm that these practices have been eliminated;

(b)

any transactions by the members have led to the inappropriate creation of own funds at the individual, sub-consolidated or consolidated level.

(a)

whether the IPS has sufficient members (among the institutions that are potentially eligible for membership) to cover any support measures it may have to implement;

(b)

the members' business models, business strategies, sizes, customers, regional focus, products, funding structures, material risk categories, sales cooperation and service agreements with other IPS members, etc.;

(c)

whether the various business profiles of the members allow the monitoring and classification of their risk situations using the uniformly stipulated systems that the IPS has in place pursuant to Article 113(7)(c) of Regulation (EU) No 575/2013;

(d)

that IPS sectors are often based on collaboration, meaning that central institutions and other specialised institutions in the IPS network offer products and services to other IPS members. When assessing the homogeneity of business profiles the NCA should consider the extent to which the members' business activities are related to the network (products and services provided to local banks, services to shared customers, capital market activities, etc.).