Featured Product

    Elke König of SRB Publishes Article on the Way Forward with MREL

    April 26, 2018

    SRB published an article by Elke König in which she discussed the way forward with minimum requirement for own funds and eligible liabilities (MREL). She described the SRB approach and the work done so far toward MREL, also highlighting that MREL will continue to be one of the key areas of work for SRB in 2018. She highlights that SRB has taken a gradual, multi-year approach to MREL, which takes into account the specificities of the banks under its remit, with the goal of maintaining proportionality in the system while preserving a level playing field and upholding high resolution standards across the Banking Union.

    To underpin resolution planning, SRB will develop guidance for the Internal Resolution Teams on solo/internal MREL and MREL calibration under transfer strategies. Internal loss-absorbing capacity is crucial to ensure that, within a group, losses are passed from the entities where they originate to those entities where resolution action is coordinated. SRB will also work further on defining the need for subordination, not least in light of assessing any challenges from the no creditor worse off, or NCWO, principle. SRB will develop its approach based on the current legislative framework and will strive to implement internal MREL for banking groups with resolution colleges during the 2018 planning cycle. Meanwhile, SRB is closely following the ongoing negotiations on the revision of the Bank Recovery and Resolution Directive and Single Resolution Mechanism (SRM) Regulation to prepare for a revision of its MREL policy, including on bank-specific targets and transition periods.

    For the less significant institutions (LSIs) that are not within its remit, SRB will act through its oversight function and assess the conformity of draft resolution measures for LSIs that national resolution authorities notify SRB on, in accordance with the SRM Regulation. These include resolution measures to be adopted, such as draft resolution plans, MREL, and resolvability assessment, in addition to the decisions to apply simplified obligations. She concludes that MREL is a crucial tool to improve resolvability of banks and that no responsible management should take a "wait and see" approach.


    Related Link: Article

    Keywords: Europe, EU, Banking, SSM, MREL, Proportionality, Bank Resolution, SRB

    Related Articles
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    FINMA Outlines Treatment of Stablecoins in Supplement to Guide on ICO

    FINMA published a supplement to its initial coin offerings (ICOs) guidelines, outlining the treatment for stablecoins under the Swiss supervisory law.

    September 11, 2019 WebPage Regulatory News
    News

    Ursula von der Leyen Presents Structure of Next European Commission

    President-elect Ursula von der Leyen has presented her team and the new structure of the next European Commission.

    September 10, 2019 WebPage Regulatory News
    News

    FED Proposes to Revise and Extend Reporting Form on Systemic Risk

    FED proposed to extend for three years, with revision, the Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-0352).

    September 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting

    EBA published the revised list of validation rules (version 2.9) in its implementing technical standards on supervisory reporting.

    September 10, 2019 WebPage Regulatory News
    News

    Bundesbank Publishes Supplementary Validation Rules for Reporting

    Bundesbank published the updated document containing supplementary validation rules in the context of the implementation of the reporting system at national level.

    September 10, 2019 WebPage Regulatory News
    News

    APRA Licenses Xinja Bank as Authorized Deposit-Taking Institution

    APRA granted Xinja Bank Limited a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.

    September 09, 2019 WebPage Regulatory News
    News

    FDIC Proposes Revisions to Regulations on Interest Rate Restrictions

    FDIC proposed revisions to its regulations covering interest rate restrictions that apply to less than well-capitalized insured depository institutions.

    September 09, 2019 WebPage Regulatory News
    News

    EBA Intends to Clarify End-Treatment of Grandfathered Instruments

    EBA announced its intention to clarify the prudential treatment applicable to own funds instruments at the end of the grandfathering period, which expires on December 31, 2021.

    September 09, 2019 WebPage Regulatory News
    News

    IMF Releases Reports on 2019 Article IV Consultation with Saudi Arabia

    IMF published its staff report and selected issues report in context of the 2019 Article IV consultation with Saudi Arabia.

    September 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3799