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
PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.
SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.
EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.
US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.
The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.
HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.
ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.
BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.
PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.
BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.