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 Consults on PSD2 and Open Finance; EU Reaches Agreement on DORA
The European Commission (EC) published a public consultation on the review of revised payment services directive (PSD2) and open finance.
EC Mandates ESAs to Propose Amendments to SFDR Technical Standards
The European Commission (EC) has issued two letters mandating the European Supervisory Authorities (ESAs) to jointly propose amendments to the regulatory technical standards under Sustainable Finance Disclosure Regulation or SFDR.
EBA Examines Supervisory Practices, Issues Deposits Reporting Template
The European Banking Authority (EBA) published its annual report on convergence of supervisory practices for 2021. Additionally, following a request from the European Commission (EC),
US Agency Publications Address Basel, Reporting, and CECL Developments
The Farm Credit Administration published, in the Federal Register, the final rule on implementation of the Current Expected Credit Losses (CECL) methodology for allowances
SEC Extends Comment Period on Climate Risk Disclosures
The U.S. Securities and Exchange Commission (SEC) looks set to intensify focus on crypto-assets and cyber risk and extended the comment period on the proposed rules to enhance and standardize climate-related disclosures for investors.
APRA Reduces Committed Liquidity Facility, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility and issued an update on the operational preparedness for zero and negative market interest rates.
CMF Consults on Basel Rules, Presents Roadmap to Address Climate Risks
The Commission for the Financial Market (CMF) in Chile published capital adequacy ratios (as of February 2022, January 2022, and December 2021) for 17 banks and for the banking system.
PRA Issues Statement on NPEs and Policy on Trading Activity Wind-Down
The Prudential Regulation Authority (PRA) issued a statement on the European Banking Authority (EBA) guidelines on management of non-performing exposures (NPEs) and forborne exposures.
EBA Updates Standards for 2023 Benchmarking of Internal Approaches
The European Banking Authority (EBA) updated the implementing technical standards that specify the data collection for the 2023 supervisory benchmarking exercise in relation to the internal approaches used in market risk, credit risk, and IFRS 9 accounting.
EIOPA Responds to Stakeholder Views on Blockchain in Insurance
The European Insurance and Occupational Pensions Authority (EIOPA) published a feedback statement on the responses received to the consultation on blockchain and smart contracts in insurance.