Conditions for Resolution

The Central Bank of Hungary acting in its capacity as the resolution authority shall order and launch the resolution proceedings if all of the following conditions are met:

1. the Central Bank of Hungary acting in its capacity as the supervisory authority determines that the institution is failing or likely to fail;
2. the Central Bank of Hungary acting in its capacity as the resolution authority states that, given the circumstances, it is unlikely that any measure other than the resolution measures would prevent the institution from becoming insolvent, and
3. according to the judgement of the Central Bank of Hungary acting in its capacity as the resolution authority, the resolution is justified by the public interest.