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
EC to Defer Application of SFDR Standards Till July 2022
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
EBA Seeks Views on Proportionality Assessment Methodology
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
US Agencies Propose Changes to Call Reports and Instructions
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
EBA Examines Asset Encumbrance in Banking Sector
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
EBA Publishes Methodological Guide to Mystery Shopping
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
APRA Issues Update on Capital Reform Policy Settings for Banks
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
CPMI-IOSCO Assess Continuity Planning of Market Infrastructures
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
ESMA Responds to Proposal Related to Sustainability Standards Board
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.
