Featured Product

    SRB Outlines Potential Relief Measures to Mitigate Impact of COVID

    April 01, 2020

    SRB Chair Elke König issued a letter to banks outlining the potential operational relief measures related to COVID-19 outbreak. In an article, she further highlights that SRB, together with the national resolution authorities, will postpone less urgent information or data requests related to the upcoming 2020 resolution planning cycle. However, the letter highlights that the Liability Data Report, the Additional Liability Report, and the Minimum Requirement for own funds and Eligible Liabilities (MREL) quarterly template are essential reports and are expected to be delivered on time by banks. SRB will also take note of the measures adopted by authorities to provide capital relief to banks in support of the economy. This will be reflected in the future MREL decisions of SRB.

    In addition, SRB continues to carefully monitor the market conditions and will assess the potential impact on transition periods needed for the build-up of MREL. The letter highlights that SRB will carefully monitor market conditions in the next months and analyze the potential impact on transition periods needed for the build-up of MREL. SRB is ready to use its discretion and the flexibility given by the regulatory framework to adapt transition periods and interim targets applied to banking groups as well as to adjust MREL targets in line with capital requirements, with particular reference to capital buffers. SRB will assess possible leeway in submission dates for other reports, such as those related to Critical Functions and Access to financial market infrastructures. SRB will continue its work on resolution planning and the preparation for issuing 2020 MREL decisions according to the set deadlines in early 2021. 

    The letter encourages banks to stay in close contact with internal resolution teams. In light of the challenges posed by resource constraints and adverse market conditions, the internal resolution teams will assess difficulties in achieving work program updates and in submitting other deliverables on an individual basis. Needless to say, all banks are expected to substantiate their requests and identify mitigating actions to continue progress toward resolvability. SRB supports the steps that ECB, Single Supervisory Mechanism, and national competent authorities are taking to help banks deliver their services and to keep lending. The resolution framework and the build-up of MREL will be important tools to help support the economic recovery and a strong banking sector. 

     

    Related Links

    Keywords: Europe, Banking, MREL, Capital Requirements, Internal Resolution Teams, Liability Data Report, Resolution Framework, Elke Konig, COVID-19, Reporting, SRB

    Featured Experts
    Related Articles
    News

    EU Agencies Update LCR Rule and Macro-Prudential Policy Recommendation

    The European Commission (EC) published the Delegated Regulation 2022/786 with regard to the liquidity coverage requirements for credit institutions under the Capital Requirements Regulation (CRR).

    May 23, 2022 WebPage Regulatory News
    News

    EBA Publishes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying the criteria to identify shadow banking entities for the purposes of reporting large exposures.

    May 23, 2022 WebPage Regulatory News
    News

    EIOPA Examines Physical Climate Risk Exposure, SII Non-Compliance

    The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks

    May 20, 2022 WebPage Regulatory News
    News

    NGFS Report Explores Quantification of Climate Risk Differentials

    The Network for Greening the Financial System (NGFS) published two reports to aid central banks and regulators in their oversight of the financial sector and in their central bank operations

    May 19, 2022 WebPage Regulatory News
    News

    EC Publishes Results on Review of Web Accessibility Directive

    The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.

    May 19, 2022 WebPage Regulatory News
    News

    MAS Consults on Adjustment Spreads for Conversion of SOR Contracts

    The Monetary Authority of Singapore (MAS) and the SC-STS are jointly consulting, until June 10, 2022, on setting adjustment spreads for the conversion of legacy SOR contracts to SORA reference rate.

    May 18, 2022 WebPage Regulatory News
    News

    OSFI Discusses Benchmark Rate Transition, Sets Out Work Priorities

    The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.

    May 17, 2022 WebPage Regulatory News
    News

    EBA Proposes Standards to Support Secondary NPL Markets

    The European Banking Authority (EBA) is consulting, until August 31, 2022, on the draft implementing technical standards specifying requirements for the information that sellers of non-performing loans (NPLs) shall provide to prospective buyers.

    May 17, 2022 WebPage Regulatory News
    News

    EU Confirms Agreement on Rules on Cybersecurity and Banking Resolution

    The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).

    May 13, 2022 WebPage Regulatory News
    News

    EBA Issues Standards for Crowdfunding Service Providers Under ECSPR

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying information that crowdfunding service providers shall provide to investors on the calculation of credit scores and prices of crowdfunding offers.

    May 13, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8206