Featured Product

    SRB Holds Annual Conference, Reflects on Turning Policy into Action

    December 10, 2019

    SRB published a report on its fourth annual conference that was held on October 10, 2019 in Brussels. This year, the discussions focused on the implementation of bank resolution policy. The discussions identified several relevant issues, including completing the Banking Union, the lack of a functioning Capital Markets Union, the need for a more robust framework around liquidity in resolution, and the newfound information technology issues that impede the efficiency of resolution and operational continuity.

    Elke König, the SRB Chair, highlighted that an updated Minimum Requirement for own funds and Eligible Liabilities (MREL) policy is to be released in early 2020. In terms of the future work areas, the SRB Chair mentioned the:

    • Need for a backstop in the Single Resolution Fund or SRF
    • Lingering issue of liquidity in resolution
    • Harmonization of insolvency regimes
    • Need for a functioning Capital Markets Union

    With these needs clearly defined, the conference set an ambitious “to do” list of what should be accomplished now if resolvability is to be successful in future. In comparing the EU to other jurisdictions, the lack of a "single European market" was repeatedly flagged as a cause for concern. With investors still viewing banks on national terms (that is, German versus Italian, instead of European), EU is not an appealing market to investors. While it is for firms to make themselves resolvable, the resolution authorities need to be clear on what this means. Also identified was an overall need for greater clarity and, with it, increased transparency.

    Furthermore, in his speech, Dietrich Domanski, the Secretary-General of FSB, focused on elements needed to maintain operational continuity when turning resolution policy into action. In this context, he mentioned the gaps identified in the eighth FSB report on implementation of resolution reforms in the areas of achieving a balance between prepositioned and nonprepositioned total loss-absorbing capacity (TLAC) resources, successful execution of a TLAC bail-in transaction, and liquidity in resolution. According to José Manuel Campa, the EBA Chair, progress has been slow and “... work still needs to be done both from the banks’ point of view and the authorities’ point of view. Only a few authorities have published guidelines on operational continuity.” EBA, he said, is working with supervisory authorities to help them create clear and common guidelines for banks on what is expected—for instance in terms of concretely identifying and mapping critical functions—across resolution authorities.

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Union, SRF Backstop, Single Resolution Board, Annual Conference, Resolution Framework, MREL, Bail-In, Liquidity in Resolution, SRB

    Featured Experts
    Related Articles
    News

    EIOPA Report Analyzes Use and Impact of Long-Term Guarantee Measures

    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.

    December 03, 2020 WebPage Regulatory News
    News

    BIS, SNB, and SIX Announce Successful Completion of CBDC POC

    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.

    December 03, 2020 WebPage Regulatory News
    News

    EBA Sets Out Treatment of Certain Banking Book Positions Under FRTB

    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.

    December 03, 2020 WebPage Regulatory News
    News

    EIOPA Consults on Integrating Climate Change into SII Standard Formula

    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.

    December 02, 2020 WebPage Regulatory News
    News

    EU Issues Corrigenda to Investment Firms Directive and Regulation

    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.

    December 02, 2020 WebPage Regulatory News
    News

    MAS Proposes Changes to Rules Arising from Banking Amendment Act

    MAS proposed amendments to certain regulations, notices, and guidelines arising from the Banking (Amendment) Act 2020.

    December 02, 2020 WebPage Regulatory News
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    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.

    November 30, 2020 WebPage Regulatory News
    News

    RBNZ Consults on Aspects of Insurance Act, Solvency Standards & IFRS17

    RBNZ launched consultations on the scope of the Insurance Prudential Supervision Act (IPSA) 2010 and on the associated Insurance Solvency Standards.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    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.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    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.

    November 30, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6191