SRB published the resolution planning cycle booklet for 2021. The booklet informs stakeholders about the resolution planning activities of SRB and describes the main processes and phases of the current cycle that was launched on April 01, 2021. The resolution planning cycle starts in the beginning of the second quarter of each calendar year and aligns the resolution planning of the banks under the SRB remit on the same twelve-month cycle running from April to March.
In the 2021 cycle, SRB will continue concentrating efforts on achieving resolvability of SRB banks and operationalizing all resolution plans prepared by SRB, with focus on liquidity and funding in resolution, Management Information Systems (MIS) capabilities for valuation data (including self-assessment report), and bail-in operationalization (with full bail-in playbooks by the end of 2021 and MIS capabilities for bail-in data by the end of 2022). During this cycle, the Internal Resolution Teams will:
- Update and further enhance 105 resolution plans, covering all banking groups under the SRB remit
- Propose binding external and internal MREL decisions for banks in its remit as well as their subsidiaries
- Prepare the resolvability assessment for each SRB bank.
SRB will contribute to the drafting of four resolution plans for which it is not the Group Level Resolution Authority. For 17 banking groups with subsidiaries in non-Banking Union EU jurisdictions, SRB cooperates closely with the relevant national resolution authorities in Resolution Colleges in the drafting of a group resolution plan and the adoption of MREL decisions. SRB also sets up Crisis Management Groups for eight global systemically important banks, or G-SIBs, in its remit for conducting an annual Resolvability Assessment Process (RAP) and preparing the Resolvability Assessment Process letters for FSB. With banks being responsible for becoming resolvable, the resolution planning cycle allows for a yearly progress and “stock-taking” and enables internal resolution teams to annually update the resolution plan, take stock of continuous resolution planning activities based on year-end figures, take legal decisions (for example, MREL), and reach formal agreements with external stakeholders. Where progress on resolvability is considered insufficient, SRB will open procedures for the removal of impediments to resolvability.
Keywords: Europe, EU, Banking, Resolution Planning, Basel, Resolution Framework, MREL, Bail-In, Regulatory Capital, SRB
Previous ArticleEC Welcomes Provisional Agreement on European Climate Law
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).
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.
The European Insurance and Occupational Pensions Authority (EIOPA) published a report assessing insurers' exposure to physical climate change risks
The European Commission (EC) published the results of a public consultation, held in October 2021, on the review of the Web Accessibility Directive.
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
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.
The Office of the Superintendent of Financial Institutions (OSFI) published the strategic plan for 2022-2025 and the departmental plan for 2022-23.
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.
The European Council and the Parliament reached an agreement on the revised Directive on security of network and information systems (NIS2 Directive).
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.