Featured Product

    SRB Publishes Guidance on Implementation of Bail-In Tool

    August 10, 2020

    SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool. The documents include operational guidance on bail-in playbooks, a set of questions and answers (Q&A) for publication of bail-in guidance, and instructions for bail-in data sets, which are accompanied by an explanatory note. SRB developed these documents in close collaboration with the national resolution authorities. The documents have been published as a follow-up to the SRB Expectations for Banks document, which was published earlier in 2020. With these documents, SRB is providing banks with additional guidance, so that that they can proceed with the necessary operational steps to become prepared for a potential bail-in event.

    The operational guidance on bail-in playbooks compiles the main elements that banks are expected to consider for developing their bail-in playbooks to enable the timely and effective execution of the write-down and conversion of capital instruments and eligible liabilities, pursuant to Article 21 of the Single Resolution Mechanism Regulation or SRMR (Regulation No 806/20141) and the execution of the bail-in tool in resolution. The document on instructions for bail-in data set compiles the main elements that banks are expected to consider for establishing the required capabilities of the Management Information Systems to enable the timely and effective execution of the write-down and conversion of capital instruments and eligible liabilities. The explanatory note on bail-in data includes information about the predefined set of bail-in data defined in the document “SRB Bail-in Data Set – Instructions” and should be read in conjunction with the related SRB publications on bail-in implementation, such as the operational guidance on bail-in playbooks. The explanatory note aims to provide explanations with respect to the data required for the application of the bail-in tool. It specifies, among others, the SRB minimum expectations concerning liability data that a bank under resolution should provide to resolution authorities in an accurate and timely manner. It also elaborates on the required level of data quality and further considerations that need to be taken into account to ensure sufficient legal certainty while implementing the bail-in tool. 

    The published documents on bail-in playbook and data are subject to further revisions, including due to changes in the applicable EU legislation. The bail-in playbook is an internal document of banks, establishing a minimum set of objectives, processes, and governance structures to support the implementation of write down and conversion powers by national resolution authorities. The first versions of the bail-in playbook should focus on the time between the runup to resolution and the finalization of the internal and external execution after the resolution weekend. Future versions are expected to gradually expand this scope, potentially covering additional elements such as the arrangements to ensure the ability to provide a business reorganization plan. The playbook should thus provide a documentation of the preparation for the internal and external execution of write-down and conversion powers and the bail-in tool, conducted by the banks in cooperation with the Internal Resolution Teams in normal times.

     

     

    Related Links

    Keywords: Europe, EU, Banking, Resolution Planning, Instructions, SRMR, BRRD, Resolution Framework, Bail-In Regime, Bail-In Dataset, SRB

    Featured Experts
    Related Articles
    News

    HKMA Finalizes Policy Modules on Group-Wide Approach and Remuneration

    The Hong Kong Monetary Authority (HKMA) revised the Supervisory Policy Manual module CG-5 that sets out guidelines on a sound remuneration system for authorized institutions.

    July 29, 2021 WebPage Regulatory News
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    ECB Study Assesses Impact of Basel III Finalization Package

    The European Central Bank (ECB) published a paper as well as an article in the July Macroprudential Bulletin, both of which offer insights on the assessment of the impact of Basel III finalization package on the euro area.

    July 26, 2021 WebPage Regulatory News
    News

    ISDA Finds FRTB Results in Higher Capital Charges for Carbon Trading

    The International Swaps and Derivatives Association (ISDA) published a paper that explores the impact of the Fundamental Review of the Trading Book (FRTB) on the trading of carbon certificates.

    July 26, 2021 WebPage Regulatory News
    News

    PRA Updates Remuneration Policy Statement Templates and Tables

    The Prudential Regulation Authority (PRA) published the remuneration policy self-assessment templates and tables on strengthening accountability.

    July 26, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7311