SRB Outlines Potential Relief Measures to Mitigate Impact of COVID
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
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Previous Article
FED Releases DFAST Methodology and FR Y-14 Forms and InstructionsRelated Articles
EBA Proposes Guidelines for Establishing Intermediate Parent Entities
EBA issued a consultation paper on the guidelines on monitoring of the threshold and other procedural aspects of the establishment of intermediate EU parent undertakings, or IPUs, as laid down in the Capital Requirements Directive.
US Agencies Publish Updates for Call Reports, FFIEC 101, and FR Y-9C
FED updated the reporting form and instructions for the FR Y-9C report on consolidated financial statements for holding companies.
EC Adopts Financial Reporting Changes Arising from Benchmark Reforms
EC published Regulation 2021/25 that addresses amendments related to the financial reporting consequences of replacement of the existing interest rate benchmarks with alternative reference rates.
BIS Bulletin Examines Key Elements of Policy Response to Cyber Risk
BIS published a bulletin, or a note, that examines the cyber threat landscape in the context of the pandemic and discusses policies to reduce risks to financial stability.
HMT Updates List of Post-Brexit Equivalence Decisions in UK
HM Treasury, also known as HMT, has updated the table containing the list of the equivalence decisions that came into effect in UK at the end of the transition period of its withdrawal from EU.
EBA Issues Erratum for Technical Package on Reporting Framework 3.0
EBA published an erratum for technical package on phase 1 of the reporting framework 3.0.
APRA Publishes FAQ on Measurement of Credit Risk Weighted Assets
APRA updated a frequently asked question (FAQ), for authorized deposit-taking institutions, on the measurement of credit risk weighted assets.
EBA Publishes Risk Dashboard for Third Quarter of 2020
EBA published the quarterly risk dashboard, along with the results of the Risk Assessment Questionnaire survey among 60 banks and 15 market analysts.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
ECB Analysis Shows Privacy as Biggest Concern in Use of Digital Euro
ECB concluded the public consultation on the introduction of a digital euro in EU.
