SRB Approach to Public Interest Assessment Under Resolution Framework
SRB published a paper that outlines its approach to the public interest assessment under the resolution framework in EU. The public interest assessment examines whether the resolution of a particular bank that is failing or likely to fail would be necessary, for example, to ensure one or more of objectives of resolution. The objectives of a resolution are to maintain financial stability, protect covered depositors, and safeguard public funds by minimizing reliance on extraordinary public financial support. If resolution is not deemed necessary, resolution actions would not be taken and national insolvency procedures would apply.
The published document offers clarity about the factors that SRB takes into account when conducting a public interest assessment and explains how SRB applies the criteria set out in EU law. When SRB considers whether to plan for or to take resolution action—both at the resolution planning stage and after a failing or likely to fail declaration—it performs a public interest assessment. The conclusion of public interest assessment drives the decision on whether resolution is to be considered as the preferred option in resolution planning. The approach was developed by SRB and national resolution authorities, in consultation with ECB and EBA, to ensure a common understanding across the Banking Union. It is one of the key policies underpinning the work of SRB.
Related Links
Keywords: Europe, EU, Banking, Resolution Framework, Public Interest Assessment, Resolution Action, Banking Union, ECB, EBA, SRB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Dieter Van der Stock
IFRS subject matter expert; accounting authority; risk management specialist
Previous Article
SEC Proposes to Amend Customer Margin Rules for Security FuturesRelated Articles
ECB Finalizes Methodology to Assess CCR and A-CVA Risk of Banks
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA Provides Opinion on Definition of Credit Institution in CRR
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA Consults on Alignment of Daily Liquidity Report for Banks
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED Releases Scenarios for Second Round of Stress Tests on Banks
FED released hypothetical scenarios for a second round of stress tests for banks.
PRA Announces Update on Supervisory Benchmarking Portfolio Exercise
PRA published updates in relation to the 2021 Supervisory Benchmarking Portfolio exercise.
FED Revises and Extends Capital Assessment and Stress Testing Reports
FED adopted a proposal to extend for three years, with revision, the capital assessments and stress testing reports (FR Y-14A/Q/M; OMB No. 7100-0341).
HKMA Updates Policy Module for Non-Centrally Cleared OTC Derivatives
HKMA revised the Supervisory Policy Manual module CR-G-14 on margin and other risk mitigation standards for non-centrally cleared over-the-counter (OTC) derivatives transactions.
EBA Updates List of Validation Rules for Reporting by Banks
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA Responds to EC Call for Advice to Strengthen AML/CFT Framework
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS Advocates Environmental Risk Analysis for Financial Sector
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
