The Single Resolution Board (SRB) published a bi-annual reporting note to the Eurogroup and signed new cooperation arrangements with the authorities of Bosnia and Herzegovina.
The bi-annual reporting note contains updates to Eurogroup on the recent resolution cases, outlines the SRB progress and priorities in 2022, and provides an update on the Single Resolution Fund (SRF), including the common backstop and the SRB consultation process on ex-ante contributions to the SRF. Below are key highlights of these developments:
- Recent Resolution cases—SRB adopted the decisions to resolve the Slovenian and Croatian subsidiaries of Sberbank to protect financial stability and avoid disruption to the Croatian and Slovenian economies, whereas SRB didn’t take any resolution action for the Austrian parent of Sberbank, as it was not considered to provide critical functions to the economy. The SRB’s decisions achieved the resolution objectives, in particular the objective of safeguarding financial stability, to protect public funds and depositors, and ensure the continuity of critical functions.
- SRB priorities for 2022—The priorities for 2022 include resolution planning, resolvability assessment, transfer tools, separability and adjustments of minimum requirement of own funds and eligible liabilities (MREL) for such transfer tools, operationalizing the Single Point of Entry, and further enhancing MREL policy and final MREL targets.
- SRF and Common Backstop—SRB remains committed to the introduction of the common backstop to the SRF in early 2022 and expects all national procedures to be finalized to introduce the common backstop as soon as possible. SRB also launched a consultation on 2022 ex-ante contributions to the SRF, which gives banks and credit institutions the opportunity to view the SRB’s preliminary decision on their calculation prior to its adoption and to comment on aspects pertinent to the calculation exercise.
In a separate development, SRB signed new cooperation arrangements with two authorities of Bosnia and Herzegovina, including both the Banking Agency of Republika Srpska (BARS) and the Banking Agency of the Federation of Bosnia and Herzegovina (FBA). The arrangement was made on the exchange of information and cooperation in connection with the resolution planning and the implementation of such planning for entities with cross-border operations.
- News Release on Bi-Annual Reporting Note
- Bi-Annual Reporting Note (PDF)
- New Cooperation Arrangements
- SRB-BARS Bilateral Arrangement (PDF)
- SRB-FBA Bilateral Arrangement (PDF)
Keywords: Europe, EU, Banking, Basel, Reporting, Regulatory Capital, Single Resolution Fund, SRF, MREL, Resolvability Assessment, Cross-Border Activities, Cooperation Arrangement, BARS, FBA, Resolution Framework, Common Backstop, SRB
Previous ArticleOSFI Revises Guideline on IFRS 9
The European Banking Authority (EBA) published its work program for 2023 as well as the technical package for phase 3 of version 3.2 of its reporting framework.
The Board of Governors of the Federal Reserve System (FED) announced a pilot climate scenario analysis exercise for six largest banks in the U.S.
The Bank for International Settlements (BIS) published a paper that studies impact of fintech lending on credit access for small businesses in U.S.
The Prudential Regulation Authority (PRA) issued the policy statement PS8/22 to amend the Own Funds and Eligible Liabilities (CRR) Part of the PRA Rulebook and update the supervisory statement SS7/13 titled "Definition of capital (CRR firms).
The European Banking Authority (EBA) launched the EU-wide transparency exercise for 2022, with results of the exercise expected to be published at the beginning of December, along with the annual Risk Assessment Report.
The Single Resolution Board (SRB) welcomed the adoption of the review of the Capital Requirements Regulation, or CRR, also known as the "CRR quick-fix."
The European Commission (EC) recently adopted the Delegated Regulation 2022/1622, which sets out the regulatory technical standards to specify the countries that constitute advanced economies for the purpose of specifying risk-weights for the sensitivities to equity.
The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).