Featured Product

    SRB Publishes Resolution Planning Booklet and MREL Dashboard

    April 28, 2022

    The Single Resolution Board (SRB) published the resolution planning cycle booklet for 2022 and a summary of the April meeting among the financial authorities in U.S., European Union, and UK for regular coordination exercise on cross-border resolution planning. SRB also published the minimum requirement for own funds and eligible liabilities (MREL) dashboard for the fourth quarter of 2021; the dashboard shows that banks continue to build up MREL levels and the average MREL shortfall to the final 2024 targets including the combined buffer requirement reached 0.45% of the total risk exposure amount (or EUR 32.6 billion) for resolution entities, thus continuing the decreasing trend observed in the previous quarter.

    The newly published booklet on resolution planning cycle informs stakeholders about the resolution planning activities of SRB and describes the main processes and phases of the resolution planning cycle. The resolution planning cycle aligns the resolution planning of the banks under SRB remit on the same twelve-month cycle running from April to March. In the 2022 cycle, SRB will focus its work with banks under its remit on three common priorities:

    • Liquidity and funding in resolution—banks must ensure to have the capabilities to mobilize collateral to maximize liquidity sources in resolution.
    • Separability and business reorganization plans—banks have to provide additional reports on the potential reorganization plans (required in the context of the open bank bail-in strategy) and on the transferability of parts of their business.
    • Information systems and Management Information Systems (MIS) capabilities for bail-in and valuation data—all banks for which resolution is the preferred strategy are expected to conduct a bail-in dry-run and the self-testing exercise on MIS valuation by end 2022.

    Additionally, as part of the policy implementation in 2022, SRB will

    • Update its polices and operational guidance documents, among others
    • Monitor closely the resolvability and preparation of the substantive impediments procedure for banks that show insufficient progress toward achieving resolvability in line with the SRB Expectations for Banks
    • Conduct ongoing MREL monitoring to ensure build-up toward the final targets by the January 01, 2024 deadline and monitor the 2022 intermediate targets
    • Develop deep-dive assessments for conducting future on-site inspections
    • Start preparation for 2023 resolution planning cycle, taking into account that 2023 is the final year for all SRB banks to be fully resolvable, in line with the Expectations for Banks (Banks will receive bank-specific 2023 SRB priority letters in September 2022.)


    Related Links


    Keywords: Europe, EU, Banking, MREL, MREL Dashboard, Basel, Regulatory Capital, Reporting, Resolution Framework, G-SIB, Cross-Border Resolution, Resolution Planning, SRB, Subheadline 

    Featured Experts
    Related Articles

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News

    ECB Further Reviews Costs and Benefits Associated with IReF

    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.

    September 15, 2022 WebPage Regulatory News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    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).

    September 15, 2022 WebPage Regulatory News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514