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The Guidelines clarify the conditions for the application of early intervention measures provided for in the BRRD. In particular, the Guidelines provide Competent Authorities with the set of triggers that should prompt the decision on the application of early intervention measures.
The triggers provided in the Guideline are, to a large extent, based on the outcomes of the supervisory review and evaluation process (SREP), in particular, on the scores resulting from the assessment conducted by the Competent Authorities in accordance with the EBA Guidelines on common procedures and methodologies for the SREP.
The Guidelines also recognise that early intervention measures can also be triggered on the basis of other circumstances which might not be immediately factored into the outcomes of the SREP assessment, such as significant events or material deterioration or anomalies in the key indicators monitored by Competent Authorities as part of the SREP.
However, the Guidelines do not establish any quantitative thresholds for indicators that could be perceived as new capital or liquidity requirements.