FSB published responses received to the consultation on disclosures for resolution planning and resolvability of banks. The discussion paper focused mainly on disclosures of resolution planning for global systemically important banks (G-SIBs) and explored how general and firm-specific disclosures on resolution planning and resolvability could be enhanced. However, many of the disclosure approaches discussed are also relevant for domestic systemically important banks and other firms subject to resolution planning requirements. FSB published responses received from Bank Policy Institute (BPI) and Financial Services Forum (FSF), CLS Bank International, European Banking Federation (EBF), Institute for International Finance (IIF) and the Global Financial Markets Association (GFMA), and Japanese Bankers Association (JBA). The comment period on the consultation had ended on August 02, 2019.
The discussion paper drew on the current practices on disclosure of general information by authorities and of firm-specific information by both authorities and firms on resolution regimes and resolution planning. FSB was seeking feedback on the merits of such disclosures and ways to enhance disclosure practices. The discussion paper focused on ex-ante disclosures on resolution planning and resolvability. Such disclosures should help strengthen market discipline and public accountability and offer additional incentives for firms to remove any remaining barriers to resolvability. Additionally, ex-ante disclosures may clarify expectations and strengthen market confidence in the resolution actions of authorities. The discussion paper did not cover communications and disclosures in the lead-up to a resolution or as a resolution event unfolds, nor did it discuss ex-post disclosures, such as information about specific resolution cases or legal cases.
Keywords: International, Banking, Resolution Planning, Resolvability, G-SIB, Disclosure, Systemic Risk, Responses to Consultation, FSB
Previous ArticleECB Recommendations Address Impact of Transition from EONIA to €STR
PRA, via the consultation paper CP12/20, proposed changes to its rules, supervisory statements, and statements of policy to implement certain elements of the Capital Requirements Directive (CRD5).
EIOPA published the financial stability report that provides detailed quantitative and qualitative assessment of the key risks identified for the insurance and occupational pensions sectors in the European Economic Area.
EBA published its risk dashboard for the first quarter of 2020 together with the results of the risk assessment questionnaire.
EBA announced that the next stress testing exercise is expected to be launched at the end of January 2021 and its results are to be published at the end of July 2021.
PRA published the consultation paper CP11/20 that sets out its expectations and guidance related to auditors’ work on the matching adjustment under Solvency II.
MAS published a statement guidance on dividend distribution by banks.
APRA updated its capital management guidance for banks, particularly easing restrictions around paying dividends as institutions continue to manage the disruption caused by COVID-19 pandemic.
FSB published a report that reviews the progress on data collection for macro-prudential analysis and the availability and use of macro-prudential tools in Germany.
EBA issued a statement reminding financial institutions that the transition period between EU and UK will expire on December 31, 2020; this will end the possibility for the UK-based financial institutions to offer financial services to EU customers on a cross-border basis via passporting.
SRB published guidance on operational continuity in resolution and financial market infrastructure (FMI) contingency plans.