SRB published its annual report for 2018. The annual report offers an overview of the SRB work and highlights its achievements and progress during the year. SRB made significant progress in strengthening the resolution framework, further operationalizing resolution tools and the corresponding resolution planning policies, refining the minimum requirements for own funds and eligible liabilities (MREL) policy, enhancing crisis readiness, further operationalizing the Single Resolution Fund (SRF), strengthening and contributing to international and regulatory cooperation, and further developing internal processes. SRB Chair Elke König is expected to present the report to ECON Committee of European Parliament at a public hearing on July 23, 2019.
Work on more than 100 resolution plans for banks under the SRB remit progressed in close collaboration with national resolution authorities during the past year. In 2018, SRB differentiated between banks active entirely in the Banking Union (that is, banks without a resolution college) and the most complex, internationally active banks that is, banks with resolution colleges). The resolution planning cycle for 2018/2019 marks a type of transition phase to get to accelerate work and get to the steady state for resolution planning. SRB intends to use the transition phase to implement the new provisions of the risk-reduction package, which the EU lawmakers agreed on in 2018.
Political agreement on the Common Backstop marked another important milestone for the work of SRB. As part of its commitment to be ever more transparent, SRB published its detailed MREL policy and communicated extensively with the banks under its remit to reach its goal to have full fledged resolution plans for all banking groups under its remit by 2020. As outlined in the Work Program for 2018, SRB focused its work on the following main operational areas:
- Strengthening resolvability for SRB entities and less significant institutions
- Fostering a robust resolution framework
- Preparing and carrying out effective crisis management
- Operationalizing the Single Resolution Fund
- Establishing a lean and efficient organization
Keywords: Europe, EU, Banking, Annual Report, MREL, Resolution Framework, Resolution Planning, Single Resolution Fund, SRB
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