General Information & Client Service
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
December 19, 2017

EBA published a report on the application of simplified obligations and waivers in recovery and resolution planning. It also published the final draft regulatory technical standards specifying the eligibility criteria to determine whether institutions could be subject to simplified obligations when drafting such plans. This regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

The report shows that across the EU, significantly divergent practices apply. Differences have been identified both in the assessment of institutions' eligibility for simplified obligations, as well as in determining the reduced scope of the recovery and resolution planning requirements laid down in the Bank Recovery and Resolution Directive (BRRD). The regulatory technical standards should help reduce some of the observed divergent practices by increasing harmonization in simplified obligations eligibility assessment methodologies applied by national authorities. The report shows that, as of April 30, 2017, only around half of the competent and resolution authorities across the EU had granted simplified obligations or waivers to institutions in their respective jurisdictions. The remaining authorities did not apply simplified obligations or waivers because they had chosen not to exercise this discretion or because of delays in the transposition of the BRRD into their national legal frameworks.

With regard to eligibility assessments for simplified obligations, EBA analysis highlights the use by competent and resolution authorities of different practices across the EU. The final draft standards on simplified obligations have addressed most of these divergences by introducing a common two-stage eligibility assessment methodology. This should increase the convergence of practices and ensure a level playing field. Furthermore, the observed differences in the scope of simplifications applied by the authorities. In some member states, simplified obligations were very similar to the full BRRD requirements, whereas, in other jurisdictions, institutions were exempted from applying a substantial part of the relevant BRRD provisions for recovery and resolution planning. EBA will closely monitor the identified differences in relation to the scope of application of simplified obligations and waivers as well as to the impact of the final draft regulatory technical standards.

 

Related Link: Press Release

Keywords: Europe, EU, Banking, Recovery and Resolution Planning, Regulatory Technical Standards, BRRD, EBA

Related Insights
News

OCC Consults on Amendments to the Stress Testing Rule

OCC issued a proposed rule on the company-run stress testing requirements for national banks and Federal savings associations.

December 18, 2018 WebPage Regulatory News
News

ESAs RTS to Extend Treatment of Covered Bonds to STS Securitization

ESAs published two joint draft regulatory technical standards (RTS) to amend the RTS on the clearing obligation and risk mitigation techniques for non-cleared OTC derivatives.

December 18, 2018 WebPage Regulatory News
News

APRA Authorizes New Restricted Authorized Deposit Taking Institution

APRA announced that it has authorized Xinja Bank Limited as a restricted authorized deposit-taking institution (Restricted ADI) under the Banking Act 1959.

December 18, 2018 WebPage Regulatory News
News

EBA Consults on Amendment to Rule on Benchmarking of Internal Models

EBA published a consultation to amend the Commission Implementing Regulation (2016/2070) on benchmarking of internal models to adjust the benchmarking portfolios and reporting requirements in view of the benchmarking exercise it will carry out in 2020.

December 18, 2018 WebPage Regulatory News
News

US Agencies Propose Derivative Counterparty Credit Exposure Framework

US Agencies (OCC, FED, and FDIC) proposed to implement a new approach for calculating the exposure amount of derivative contracts under the regulatory capital rule.

December 17, 2018 WebPage Regulatory News
News

HKMA Announces Intention to Consult on Updated BCBS Disclosure Rules

HKMA announced that it will consult the industry in due course on the relevant implementation proposal to give effect to the disclosure requirements of the December 2018 package by BCBS.

December 17, 2018 WebPage Regulatory News
News

EBA Finalizes Guidelines on Disclosure of Non-Performing Exposures

EBA published the final guidelines on disclosure of non-performing and forborne exposures.

December 17, 2018 WebPage Regulatory News
News

BDF Issues Validations and Supporting Documents on AnaCredit Reporting

BDF updates the validations (controls) and supporting documents for AnaCredit reporting, including the “Framework for Financial Institutions and Public Administrations."

December 17, 2018 WebPage Regulatory News
News

HKMA Issues and Revises Reporting Forms Under the IRRBB Framework

HKMA issued a revised version of the Supervisory Policy Manual (SPM) IR-1, with an updated title “Interest Rate Risk in the Banking Book” (IRRBB).

December 14, 2018 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Second Update for December 2018

EBA published answers to six questions under the Single Rulebook question and answer (Q&A) updates for this week.

December 14, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2351