Featured Product

    BaFin Issues Circular on Minimum Requirements for Implementing Bail-In

    July 29, 2019

    BaFin published the final Circular 05/2019 that covers the minimum requirements for implementing a bail-in for supervised institutions. The circular contains minimum requirements for information to be provided and for the technical and organizational resources needed to ensure the provision of information. These requirements are important prerequisites for a swift and precise implementation of the Write Down and Conversion of Capital Instruments (WDCCI) power and the bail-in tool pursuant to Sections 89 and 90 of the German Act on the Recovery and Resolution of Institutions and Financial Groups and Articles 21 and 27 of Single Resolution Mechanism Regulation (SRMR).

    The circular is addressed to all institutions under the responsibility of BaFin as national resolution authority, provided that BaFin has informed the institutions in the context of resolution planning that the requirements have to be compiled with. The circular was submitted for consultation from February to March 2019. In the context of resolution planning, the resolution authority must examine the resolvability of institutions and groups, improve resolvability, and remove impediments to resolvability, if necessary. This includes examining whether a selected resolution strategy is feasible and whether there are potential grounds for refusal. Among other things, it must be examined whether

    • Management information systems are able to provide the information that is essential for effective implementation of the institution at any time, even under the rapidly changing conditions
    • An institution is able to provide the information necessary to determine the amount of the required write-down and/or recapitalization

    The circular also supplements the information requirements of the Liability Data Reporting (LDR) of BaFin but does not replace them. Information for BaFin LDR template and the processes for preparation of this template can be used as a basis. However, information from the BaFin LDR template must be supplemented, first, because not all the necessary information relevant to decision-making with regard to WDCCI power and bail-in tool is taken into account. Second, in contrast to the BaFin LDR template, the bail-in information must be provided ad hoc and at short notice.

     

    Related Links

    Keywords: Europe, Germany, Banking, Minimum Requirements, Bail-In, Resolution Planning, Reporting, BaFin

    Featured Experts
    Related Articles
    News

    PRA to Elaborate on Approach to Transposition of CRD5 by Mid-December

    PRA published a statement that explains when to expect further information on the PRA approach to transposing the Capital Requirements Directive (CRD5), including its approach to revisions to the definition of capital for Pillar 2A.

    November 30, 2020 WebPage Regulatory News
    News

    SRB Sets Out Work Program for 2021-2023

    SRB published the work program for 2021-2023, setting out a roadmap to further operationalize the Single Resolution Fund and to achieve robust resolvability of banks under its remit over the next three years.

    November 30, 2020 WebPage Regulatory News
    News

    EIOPA Consults on KPIs on Sustainability for Non-Financial Reporting

    EIOPA is consulting on the relevant ratios to be mandatorily disclosed by insurers and reinsurers falling within the scope of the Non-Financial Reporting Directive as well as on the methodologies to build these ratios.

    November 30, 2020 WebPage Regulatory News
    News

    US Agencies Issue Statement on LIBOR Transition

    US Agencies (FDIC, FED, and OCC) issued a joint statement encouraging banks to cease entering into new contracts that use USD LIBOR as a reference rate as soon as practicable and in any event by December 31, 2021, to facilitate an orderly LIBOR transition.

    November 30, 2020 WebPage Regulatory News
    News

    GHOS Endorses Coordinated Approach to Mitigate COVID Risks for Banks

    The Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS, endorsed a coordinated approach to mitigate COVID-19 risks to the global banking system.

    November 30, 2020 WebPage Regulatory News
    News

    HM Treasury Extends Consultation Dates for FRF and Solvency II Reviews

    HM Treasury extended the consultation period on Phase II of the Future Regulatory Framework (FRF) Review, from January 19, 2021 to February 19, 2021.

    November 30, 2020 WebPage Regulatory News
    News

    ECB Publishes Guide on Management of Climate and Environmental Risks

    ECB finalized guidance on the way it expects banks to prudently manage and transparently disclose climate and other environmental risks under the current prudential rules.

    November 27, 2020 WebPage Regulatory News
    News

    BCBS Amends Capital Treatment of Non-Performing Loan Securitizations

    BCBS published a technical amendment to the capital treatment of securitizations of non-performing loans by banks.

    November 26, 2020 WebPage Regulatory News
    News

    PRA Policy on Stressed VaR and RNIV Calculations Under Market Risk

    PRA published the policy statement PS23/20 on the calculation of stressed value at risk (sVAR) and risks not in value at risk (RNIV) under the market risk framework.

    November 26, 2020 WebPage Regulatory News
    News

    BoE to Move Statistical Data Collection to BEEDs Portal

    BoE announced that the Data and Statistics Division is planning to move collection of statistical data to the BoE Electronic Data Submission (BEEDS) portal.

    November 25, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 6179