BaFin and Bundesbank are consulting on draft "leaflet" and draft regulation on the minimum requirements for recovery plans for institutions and investment firms (MaSanV). Responses are requested by May 24, 2019.
The draft "leaflet" for the recovery plan contains explanation on the interaction of the regulations of the MaSanV and the immediately applicable Delegated Regulation (EU) No 2016/1075. For reasons of legality, these explanations cannot be made in the MaSanV. The MaSanV is structured into four sections. Section 1 contains general rules for all recovery plans, particularly the scope of MaSanV and definitions. Section 2 deals with the full requirements for recovery plans that apply to all potentially systemic institutions (PSI). In particular, the MaSanV sets EBA guidelines on the range of scenarios to be used in recovery plans (EBA/GL/2014/06) and the EBA guidelines on the minimum list of qualitative and quantitative indicators of the recovery plan (EBA/GL/2015/02) into German law. Some provisions of the Delegated Regulation (EU) No 2016/1075 are specified in more detail in the MaSanV by supplementary regulations. Section 3 deals with the simplified requirements, which the supervisory authority can lay down for non-PSI. The provisions of Section 4 concern the request for exemption, the conditions for exemption, and the substantive requirements for the recovery plan.
Pursuant to Section 12(1) of the Restructuring and Settlement Act (SAG), all credit institutions and investment firms subject to the European Capital Requirements Regulation (CRR) must draw up a restructuring plan. For institutions that are not potentially systemic, the regulator may set simplified requirements. If such institutions belong to an institution-specific security system, they can also be completely relieved of the restructuring plan.
Related Links (in German)
Comment Due Date: May 24, 2019
Keywords: Europe, Germany, Banking, Securities, Minimum Requirements, Recovery Planning, CRR, Bundesbank, BaFin
Previous ArticleOCC to Amend Rule on Other Real Estate Owned Activities for Banks
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.