Provision of IGFS under Article 23

Article 23 of Directive 2014/59/EU (BRRD) requests that all the conditions are met before the support is provided and pertains to the entity providing the support. Also, it shall be noted that Article 23 is closely linked to other Articles of Chapter III: - It includes conditions that need to be reflected in the IGFS agreement and that need to be assessed (for consistency) by the joint decision, or in its absence, by the consolidating supervisor (Article 20 (6)) before authorisation is granted. - Decision to provide support shall indicate how it complies with the principles (Article 24) - Once the decision to provide support is taken, there may be another assessment of it meeting the conditions of Article 23. The authority of the providing entity may object to it if the conditions are not met (Article 25). Thus the scenario prescribed in the question would not satisfy implementation of this provision. Disclaimer: 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.