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
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
