EC signed a memorandum of understanding (MoU) with SRB on the modalities for their cooperation and information exchange on bank resolution. The MoU is intended to codify best practices and ensure that effective working arrangements are in place between EC and SRB. The two authorities share the objectives of ensuring the orderly resolution of failing banks while protecting financial stability and ensuring that taxpayers are not first in line to bear costs.
The MoU spells out the working methods between SRB and EC, in line with the Single Resolution Mechanism (SRM) legal framework. This includes cooperation on resolution, regulatory, and communication matters. The MoU does not extend to cooperation on EC decisions related to State aid in resolution, as provided for in Article 19 of the SRM. SRB must inform EC about any action it takes to prepare for resolution. In the exercise of their respective responsibilities, SRB and EC must cooperate closely, in particular in the resolution planning, early intervention, and resolution phases pursuant to Articles 8 to 29 of the SRM Regulation and they must provide each other with all information necessary for the performance of their tasks.
Keywords: Europe, EU, Banking, Bank Resolution, MoU, Resolution planning, SRM Regulation, SRB, EC
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.