SRB Publishes First Multi-Annual Planning and Work Program
SRB published its first multi-annual programming document, including its Work Program for 2018. SRB sets out an ambitious roadmap for improving the resolvability of the banks under its remit over the next three years.
Key objectives include completion and refinements of resolution plans and definition of Minimum Requirement for own funds and Eligible Liabilities (MREL) for all major banking groups in the SRB remit, reinforced crisis preparedness, and further operationalization of the Single Resolution Fund (SRF). To achieve its objectives, SRB has defined the following five strategic areas of operation in which progress is to be accomplished:
- Strengthening resolvability for SRB entities and less significant institutions
- Fostering a robust resolution framework
- Preparing and carrying out effective crisis management
- Operationalizing the SRF
- Establishing a lean and efficient organization
With respect to the resolution plans, the objective is to complete resolution plans for all major banking groups by 2020, including binding minimum requirements for own funds and eligible liabilities (MREL) targets on all levels of a group. In 2017, SRB has started to develop binding targets for major banking groups. SRB intends to define MREL requirements for these groups in 2018, with an increased focus on the quality and the internal location of MREL, in particular ensuring that there are sufficient subordinated instruments to implement banks’ preferred resolution strategies. Beyond MREL, resolution plans will benefit from the growing experience and ongoing policy work in many domains, for example, on impediments to resolution. SRB will also reinforce the crisis preparedness, aiming to implement efficient workflows under multiple crisis scenarios. The SRB Chair Elke König said, "We are clearly committed to the SRB’s mission: ensuring an orderly resolution of failing banks with minimum impact on the real economy, the financial system, and the public finances of the participating member states and beyond."
Related Links
Keywords: Europe, EU, Banking, Resolution Framework, MREL, LSI, Resolution Planning, Work Program, SRB
Previous Article
FSI Paper on Supplemental Basel III Liquidity Monitoring ToolsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.