Featured Product

    EC Notice on Clarification of Provisions of Bank Resolution Framework

    December 02, 2020

    EC published a notice in the Official Journal of the European Union on the interpretation of certain legal provisions of the revised bank resolution framework. The notice is in response to questions raised by the authorities of member states in the context of the resolution framework for banks. In this notice, EC adopts answers related to legal acts, including the revised Bank Recovery and Resolution Directive (BRRD2) and Single Resolution Mechanism Regulation (SRMR2). This notice complements the notice adopted by EC, in September 2020, with the answers to the questions raised by authorities of member states on the interpretation of certain legal provisions of BRRD 2 and its interactions with SRMR and the Capital Requirements Directive and Regulation.

    The notice addresses questions on the following topics:

    • Minimum requirement for own funds and eligible liabilities
    • Contractual recognition of bail-in
    • Write-down or conversion of capital instruments and eligible liabilities
    • Contractual recognition of resolution stay powers
    • Selling of subordinated eligible liabilities to retail clients
    • Power to prohibit certain distributions provided in Article 16A BRRD
    • Resolution planning
    • Insolvency proceedings in respect of institutions and entities that are not subject to resolution action
    • Powers to suspend payment or delivery obligations under Articles 33A and 69

    The banking reform package includes changes to the bank resolution framework through BRRD2 and SRMR2. Member states must transpose the provisions of BRRD2 into their national law by December 28, 2020. This notice clarifies the provisions already contained in the applicable legislation. It does not extend in any way the rights and obligations deriving from such legislation nor introduce any additional requirements of the concerned operators and competent authorities. The notice is intended to assist authorities of member states in the transposition of EU legislation into national law and in the implementation of relevant legal provisions. 

     

    Related Links

    Keywords: Europe, EU, Banking, BRRD2, CRR2, SRMR2, CRD5, Resolution Framework, Q&A, Basel, Regulatory Capital, EC

    Featured Experts
    Related Articles
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    News

    APRA Licenses Two More Banks, Reduces Committed Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.

    January 07, 2022 WebPage Regulatory News
    News

    EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions

    EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).

    January 06, 2022 WebPage Regulatory News
    News

    EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges

    The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.

    January 05, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7860