BNM Consults on Recovery and Resolution Planning Framework
BNM issued exposure draft on the recovery and resolution planning framework for financial institutions. To facilitate a systematic approach for financial institutions to conduct assessments or provide material information within the recovery planning process, the policy document is accompanied by a set of reporting templates listed in Appendix 1. As per the proposal, a financial institution shall submit its first recovery plan within 12 months from the date it receives a request from BNM. The comment period for this draft ends on March 31, 2020.
The recovery and resolution planning framework seeks to put in place an effective and efficient process to enhance supervisability, recoverability, and resolvability of financial institutions. The framework will incorporate the essential elements of the FSB's "Key Attributes of Effective Resolution Regime for Financial Institutions" into the domestic regulatory, supervisory, and resolution regimes. Under the proposed framework, each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of idiosyncratic and system-wide stress events. For the purpose of this draft, a financial institution refers to a banking institution and financial holding company, wherein a banking institution refers to a licensed bank, a licensed Islamic bank, and/or a licensed investment bank. The requirements set out in this proposed policy document shall apply to financial institutions on a consolidated basis. For the purpose of this proposed policy document, this shall include the global operations of the financial institution and all its financial and non-financial subsidiaries, including insurance and/or takaful subsidiaries.
Related Links
Keywords: Asia Pacific, Malaysia, Banking, Recovery Planning, Recovery and Resolution Framework, Reporting, BNM
Featured Experts

María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer

Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.

Patrycja Oleksza
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Related Articles
EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
EBA Updates Lists of Entities for Use in Capital Calculations under SA
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS Amends Notice on Related Party Transactions of Banks
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB Amends Guideline on Euro Short-Term Rate
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA Consults on Standards Related to FRTB-SA
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA Proposes Rules Related to IRB Approach for Credit Risk
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
BoE Outlines Regulatory Treatment of Recovery Loan Scheme of UK
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB Addresses G20 on COVID Measures, TBTF Reforms, and Climate Risks
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI Unwinds Temporary Increase to Covered Bond Limit for Banks
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
EU Amends CRR and Securitization Regulation in Response to Pandemic
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).