According to Article 23 Directive 2014/59/EU (BRRD), the intra-group financial support may be granted if there is a reasonably prospect that the beneficiary party pay the consideration. Should this consideration only take a pecuniary form?
In our opinion, BRRD states that the consideration for intra-group financial support shall be calculated in monetary units/pecuniary form according to Article 19 (7). We seek clarification as to whether our assumption is correct.
Article 19 of Directive 2014/59/EU (BRRD) sets out the principles for determination of consideration, it does not explicitly prescribe that consideration should be necessarily paid back in monetary units. While it is sensible to expect that the calculation of the consideration (in order to determine its amount) should be expressed in monetary units, its paying bank, for instance, could take the form of securities of the equivalent value.
This question goes beyond matters of consistent and effective application of the regulatory framework. A Directorate General of the Commission (Directorate General Financial Stability, Financial Services and Capital Markets Union) has prepared the answer, albeit that only the Court of Justice of the European Union can provide definitive interpretations of EU legislation. This is an unofficial opinion of that Directorate General, which the European Banking Authority publishes on its behalf. The answers are not binding on the European Commission as an institution. You should be aware that the European Commission could adopt a position different from the one expressed in such Q&As, for instance in infringement proceedings or after a detailed examination of a specific case or on the basis of any new legal or factual elements that may have been brought to its attention.
Update 26.03.2021: This Q&A has been reviewed in the light of the changes introduced to Directive 2014/59/EU (BRRD) and continues to be relevant.