SRB Issues Update on Resolution Actions for Banco Popular
SRB is moving into the final phase of the "right to be heard" process regarding its preliminary decision on whether to compensate the shareholders and creditors affected by the resolution actions concerning Banco Popular Español S.A. SRB and the independent valuer, where relevant, reviewed and are finalizing their assessment of the 2,856 submissions from registered and verified affected parties. On this basis, SRB will carefully consider its final decision about whether compensation needs to be granted to the affected shareholders and creditors. SRB will announce its decision in the coming months.
SRB transferred all shares of Banco Popular Español S.A. to Banco Santander S.A on June 07, 2017, following the exercise of the write-down and conversion of capital instruments prior to the transfer. Due to Banco Popular's stressed liquidity situation, ECB decided, on June 06, 2017, that Banco Popular was failing or likely to fail and notified SRB accordingly. SRB and FROB, the Spanish national resolution authority, decided that the sale was in the public interest as it protects all depositors of Banco Popular and ensures financial stability. The resolution scheme entered into force on the same day, following the EC endorsement.
On August 06, 2018, SRB published its preparatory act, in which it took a preliminary decision that it is not required to compensate affected shareholders and creditors of Banco Popular based on the conclusions of the report of the independent valuer regarding the valuation of difference in treatment. At that time, SRB also opened the registration for the right to be heard process. This allowed affected shareholders and creditors to provide reasoning where they do not agree with the preliminary decision and to explain why they consider alternative approaches or assumptions for the normal insolvency proceedings should have been adopted and, if they had been, how in their view these would have affected the final outcome. The submissions received by SRB covered both the way SRB approached the valuation for difference in treatment and the Valuation 3 report.
Related Links
Keywords: Europe, EU, Spain, Banking, Right to be Heard, Resolution Framework, National Resolution Authority, FROB, Banco Popular, SRB
Related Articles
BoE Seeks Information Before Migrating Statistical Reporting to BEEDS
The Bank of England (BoE) published the Statistical Notice 2021/09 requiring additional information from firms and software vendors to assist in the onboarding and testing phases for migrating statistical reporting to the BEEDS portal.
FCA Publishes Final Rules on Investment Firms Prudential Regime
The Financial Conduct Authority (FCA) published the final rules on the Investment Firms Prudential Regime (IFPR) to streamline and simplify the prudential requirements for solo-regulated UK firms authorized under the Markets in Financial Instruments Directive (MiFID).
CFRF Publishes Guides to Manage Financial Risks from Climate Change
The working groups of the Climate Financial Risk Forum (CFRF) published a second round of guides (or Session 2 guides), written by the industry for the industry, to help financial firms manage climate-related financial risks.
PRA Finalizes Policy for Non-Performing Exposure Securitizations
The Prudential Regulation Authority (PRA) published the final Policy Statement PS24/21 that contains the new Non-Performing Exposures Securitization Part of the PRA Rulebook and an updated Supervisory Statement SS10/18 on the general requirements and capital framework with respect to securitizations.
EBA Updates Filing Rules for Supervisory Reporting
The European Banking Authority (EBA) published version 5.1 of the filing rules for supervisory reporting.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
ECB Amends Guideline on Procedures for Collection of AnaCredit Data
The European Central Bank (ECB) Guideline 2021/1829 on the procedures for the collection of granular credit and credit risk data has been published in the Official Journal of European Union.
EBA Publishes Standards on Disclosure of Investment Policy Under IFR
The European Banking Authority (EBA) published the final draft regulatory technical standards on disclosure of investment policy by investment firms, under the Investment Firms Regulation (IFR).
EU to Explore Potential of Establishing a Joint Cyber Unit
The European Council adopted conclusions inviting the European Union (EU) and the member states to further develop the cybersecurity crisis management framework.
EC Sets Out Work Program for 2022
The European Commission (EC) adopted the work program for 2022.
