BaFin published a circular on determination of minimum requirement for own funds and eligible liabilities (MREL) for institutions subject to insolvency proceedings. The circular describes the administrative practice of BaFin with regard to the MREL definition under Article 12 of Regulation (EU) No 806/2014 on the Single Resolution Mechanism (SRM Regulation).
The requirements in the circular apply in accordance with Section 49 (1) and Section 50 (1) of Restructuring and Settlement Act, for institutions and groups in which the implementation of insolvency proceedings as a winding-up strategy is credible and feasible. The corresponding consultation on this circular ended on May 17, 2019. The circular is addressed to all institutions under the direct responsibility of BaFin as the national resolution authority. Institutions that are supervised by SRB under the SRM Regulation are excluded from the scope of this circular.
Related Links (in German)
Keywords: Europe, Germany, Banking, MREL, Resolution Regime, SRM Regulation, BaFin
Previous ArticleAPRA Revises Related Entities Standard for Banks
EIOPA submitted—to the European Parliament, the Council of the European Union, and EC—its 2020, fifth, and last annual report on long-term guarantee measures and measures on equity risk.
The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia.
EBA published the final draft regulatory technical standards for calculation of own funds requirements for market risk, under the standardized and internal model approaches of the Fundamental Review of the Trading Book (FRTB) framework.
EIOPA published discussion paper on a methodology for the potential inclusion of climate change in the Solvency II (sometimes also written as SII) standard formula when calculating natural catastrophe underwriting risk.
EU published, in the Official Journal of the European Union, corrigenda to the Directive and the Regulation on the prudential requirements and supervision of investment firms.
MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.
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.
RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.
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.