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
EBA published a report analyzing the impact of the unwind mechanism of the liquidity coverage ratio (LCR) for a sample of European banks over a three-year period, from the end of 2016 to the first quarter of 2020.
In response to questions from a member of the European Parliament, the ECB President Christine Lagarde issued a letter clarifying the possibility of amending the AnaCredit Regulation and making targeted longer-term refinancing operations (TLTROs) dependent on the climate-related impact of bank loans.
IASB started the post-implementation review of the classification and measurement requirements in IFRS 9 on financial instruments and added the review as a project to its work plan.
FSB published a report that examines progress in implementing policy measures to enhance the resolvability of systemically important financial institutions.
EBA published a report on the benchmarking of national loan enforcement frameworks across 27 EU member states, in response to the call for advice from EC.
FSB published a letter from its Chair Randal K. Quarles, along with two reports exploring various aspects of the market turmoil resulting from the COVID-19 event.
RBNZ launched a consultation on the details for implementing the final Capital Review decisions announced in December 2019.
The Trustees of the IFRS Foundation, which are responsible for the governance and oversight of IASB, have announced the appointment of Dr. Andreas Barckow as the IASB Chair, effective July 2021.
HKMA issued a letter to consult the banking industry on a full set of proposed draft amendments to the Banking (Capital) Rules for implementing the Basel standard on capital requirements for banks’ equity investments in funds in Hong Kong.
ESRB published an opinion assessing the decision of Swedish Financial Supervisory Authority (FSA) to extend the application period of a stricter measure for residential mortgage lending, in accordance with Article 458 of the Capital Requirements Regulation (CRR).