The European Banking Authority (EBA) is amending the implementing technical standards on provision of information for the purpose of resolution plans (Implementing Regulation 2018/1624) in the context of the revised Bank Recovery and Resolution Directive (BRRD2 for Directive 2019/879). Thus, EBA published a report on the draft amendments to the standards, along with the associated templates and instructions. The draft implementing technical standards will be submitted to the European Commission for endorsement before being published in the Official Journal of the European Union. The amended implementing standards are envisaged to apply for the first time with the reference date of December 31, 2021.
The amendments aim to re-align the implementing technical standards with the provisions of the BRRD. The amendments follow changes to the minimum requirement for own funds and eligible liabilities (MREL) introduced in the revised BRRD2 as well as to remove some identified obstacles that hamper compliance with the requirements specified in the standards. The following key amendments are being introduced:
- Regarding liabilities excluded from bail in, as shown in template Z 02.00, the row on system operator liabilities (Article 44(2), point (f) BRRD) was modified and a new row on liabilities with other entities of the resolution group (Article 44(2), point (h) BRRD) was added.
- Given that MREL is expressed, and compliance with the requirement is assessed, among others, in relation to the Total Exposure Measure of the leverage ratio, a new row capturing the reporting entities’ total exposure measure was added to template Z 03.00.
- Templates Z 02.00 and Z 04.00 include one item each capturing liabilities eligible for MREL.
- The instructions were updated to point to the new Article 45 BRRD and the relevant articles laying down the conditions for eligibility (incl. Article 55 BRRD).
- These amending implementing technical standards also clarify or amend the provisions on the unique keys for reporting information in the open axis templates Z 08.00 to Z 10.02. The amendments are a result of the practical experience gathered from reporting since end-2018 and aim to remove some identified obstacles at the technical level that hamper compliance with the requirements specified in these implementing standards.
- The amending implementing technical standards include minor corrections to references as well as an updated list of Deposit Guarantee Schemes (Z 06.00).
EBA plans to undertake a comprehensive review of these implementing technical standards that will consider the practical experience with reporting, changed user needs, and the existence of the implementing technical standards on disclosures and reporting in MREL and total loss-absorbing capacity (TLAC) during the course of 2021, with a potential application of the overhauled reporting from December 31, 2022 (reference date). A consultation on the proposals of the comprehensive review will take place later this year
Keywords: Europe, EU, Banking, Reporting, Resolution Framework, Resolution Planning, Implementing Technical Standards, BRRD, MREL, TLAC, Templates, Instructions, EBA
Previous ArticleMNB Welcomes Recommendations to Make Capital Markets Sustainable
The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.
The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).
The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.
The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.
The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.
The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.
Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)
The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.
The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.
The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.