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

    MAS Amends Notice 610 on Reporting Templates for Banks in Singapore

    MAS published amendments to Notices 610 and 1003 related to submission of statistics and returns, along with the reporting templates and frequently asked questions (FAQs) associated with these Notices.

    January 24, 2020 WebPage Regulatory News
    News

    HKMA Updates Policy Module on Supervisory Review Process

    HKMA is issuing, by notice in the Gazette, revised versions of two Supervisory Policy Manual modules as statutory guidelines under section 7(3) of the Banking Ordinance. The Supervisory Policy Manual modules are CA-G-5 on “Supervisory Review Process” and SB-2 on “Leveraged Foreign Exchange Trading.”

    January 24, 2020 WebPage Regulatory News
    News

    PRA Amends Pillar 2 Capital Framework for Banks

    PRA published the policy statement PS2/20 that contains the final amendments to the Pillar 2 framework and provides feedback to responses to the consultation paper CP5/19 on updates related to Pillar 2 capital framework.

    January 23, 2020 WebPage Regulatory News
    News

    FED Proposes to Revise Information Collection Under Market Risk Rule

    FED proposed to revise and extend, for three years, FR 4201, which is the information collection under the market risk capital rule.

    January 22, 2020 WebPage Regulatory News
    News

    HKMA Consults on Stay Rules on Financial Contracts Under FIRO

    HKMA published proposals for making rules related to contractual stays on termination rights in financial contracts for authorized institutions under FIRO or the Financial Institutions (Resolution) Ordinance (Cap. 628).

    January 22, 2020 WebPage Regulatory News
    News

    MAS Amends Notices on Minimum Liquid Asset Requirements for Banks

    MAS published amendments to Notices 1015, 613, and 649 related to the minimum liquid assets (MLA) requirements.

    January 21, 2020 WebPage Regulatory News
    News

    APRA Publishes Submission on Fintech and Regtech

    APRA published its submission, to the Senate Select Committee, on financial technology and regulatory technology.

    January 21, 2020 WebPage Regulatory News
    News

    OSFI to Implement Operational Risk Capital Rules for Banks in Q1 2022

    OSFI decided to move domestic implementation of the revised Basel III operational risk capital requirements from the first quarter of 2021 to the first quarter of 2022.

    January 20, 2020 WebPage Regulatory News
    News

    ECB Consults on Guideline on Threshold for Credit Obligations Past Due

    ECB published a draft guideline, along with the frequently asked questions (FAQs), on the definition of the materiality threshold for credit obligations past due for less significant institutions.

    January 20, 2020 WebPage Regulatory News
    News

    OSFI Consults on Instruction Guide for Termination of Pension Plan

    OSFI is consulting on draft revisions to the instruction guide for termination of a defined benefit pension plan.

    January 20, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4526