SRB and BoE Agree to Work Together on Resolution of Cross-Border Banks
SRB announced that it continues to work closely with BoE to ensure that appropriate arrangements are in place for effective cooperation on the management of the failure of cross-border banks, should the need arise. This is underpinned by a cooperation arrangement that came into force on January 01, 2021 and will help to facilitate bank resolution while maintaining financial stability in EU and UK.
The cooperation arrangement sets out the framework for consulting, cooperating, and exchanging information when preparing for and implementing bank resolution in UK and the EU Banking Union, in line with the rules in both jurisdictions. This arrangement on the exchange of information and cooperation is in connection with the resolution planning and the implementation of such planning with respect to entities with cross-border operations. As the condition of an entity deteriorates, cooperation between the authorities is expected to intensify as well. Additional communications may take place under the terms of this cooperation arrangement or as otherwise agreed by the authorities. The arrangement, which is based on reciprocity and proportionality, recognizes the complex nature of cross-border bank operations. This arrangement started to apply on the date the European Treaties and the EU secondary legislation ceased to apply in UK. Authorities may review the functioning and effectiveness of cooperation and information exchange under this arrangement, either every two years or earlier, if deemed necessary by both authorities. Amendment of this arrangement requires mutual consent of the authorities.
Related Links
Keywords: Europe, EU, UK, Banking, Banking Union, Resolution Planning, Cross-Border Resolution, Resolution Framework, SRB
Related Articles
BIS Quarterly Review Discusses Developments in Fintech and ESG Space
BIS published the September issue of the Quarterly Review, which contains special features that analyze the rapid rise in equity funding for financial technology firms, the effectiveness of policy measures in response to pandemic, and the evolution of international banking.
BCBS to Consult on Supervisory Practices for Climate Risks by Year-End
The Basel Committee for Banking Supervision (BCBS) met in September 2021 and reviewed climate-related financial risks, discussed impact of digitalization, and welcomed efforts by the International Financial Reporting Standards (IFRS) Foundation to develop a common set of sustainability reporting standards
OCC Identifies Operational Risk Deficiencies in MUFG Union Bank
The Office of the Comptroller of the Currency (OCC) issued a Cease and Desist Order against MUFG Union Bank for deficiencies in technology and operational risk governance.
EC Rule on Contractual Recognition of Write Down and Conversion Powers
The European Commission (EC) published the Delegated Regulation 2021/1527 with regard to the regulatory technical standards for the contractual recognition of write down and conversion powers.
ECB to Consider Climate Risks When Reviewing Collateral Framework
In a response to the questions posed by a member of the European Parliament, the President Christine Lagarde highlighted the commitment of the European Central Bank (ECB) to an ambitious climate-related action plan along with a roadmap, which was published in July 2021.
SRB Provides Update on Approach to Prior Permissions Regime
The Single Resolution Board (SRB) published a Communication on the application of regulatory technical standard provisions on prior permission for reducing eligible liabilities instruments as of January 01, 2022.
APRA Issues Further Guidance on Application of Securitization Standard
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to provide guidance to authorized deposit-taking institutions on the interpretation of APS 120, the prudential standard on securitization.
ACPR Publishes Corrective Version of RUBA Taxonomy
The French Prudential Control and Resolution Authority (ACPR) published the corrective version of the RUBA taxonomy Version 1.0.1, which will come into force from the decree of January 31, 2022.
Nordea Bank and EIB Sign Agreement to Fund Green Projects in Nordics
The European Commission (EC) announced that Nordea Bank has signed a guarantee agreement with the European Investment Bank (EIB) Group to support the sustainable transformation of businesses in the Nordics.
APRA Publishes FAQs on Capital Treatment of Overseas Subsidiaries
The Australian Prudential Regulation Authority (APRA) published a new set of frequently asked questions (FAQs) to clarify the regulatory capital treatment of investments in the overseas deposit-taking and insurance subsidiaries.
