General Information & Client Services
  • Americas: +1.212.553.1653
  • Asia: +852.3551.3077
  • China: +86.10.6319.6580
  • EMEA: +44.20.7772.5454
  • Japan: +81.3.5408.4100
Media Relations
  • New York: +1.212.553.0376
  • London: +44.20.7772.5456
  • Hong Kong: +852.3758.1350
  • Tokyo: +813.5408.4110
  • Sydney: +61.2.9270.8141
  • Mexico City: +001.888.779.5833
  • Buenos Aires: +0800.666.3506
  • São Paulo: +0800.891.2518
July 06, 2018

The SRB Chair Dr Elke König delivered a keynote speech in Stockholm on the issue of banking resolution. She highlighted that, since the financial crisis, EU has put in place a number of measures and institutions to better deal with any shocks to the system going forward. However, there are many items still to be completed and dealt with.

She stressed that minimum requirement for own funds and eligible liabilities (MREL) buffers should be built in good times to avoid cyclical behavior; "if we do not adhere to this then the regulatory framework may end up being cyclical. And the same applies for other measures needed to address obstacles to resolvability. " While much progress has been made to date, work still remains to complete the Banking Union, including on issues such as the European Deposit Insurance Scheme and the backstop for the Single Resolution Fund.

The SRB Chair said, "this is the right time to continue to push for completion of the Banking Union... ." Insolvency procedures in the EU are still very much national. Bank insolvency procedures are not equally structured in all EU member states and should be elevated to a common best standard and practice. The ideal solution would be EU-wide rules on insolvency proceedings for the banking sector. However, the development of national handbooks is a very good "second best" option—for now at least. At present, there are 19 insolvency regimes in the Banking Union alone. This makes analyzing the insolvency counterfactual for a cross-border bank in resolution highly challenging and results in diverging outcomes, depending on the home country of the institution. Dr König encouraged all stakeholders to drive these pressing issues forward, given the favorable economic conditions that prevail at present.

Finally, the SRB Chair stressed the need for continued close cooperation within the euro area, with the Nordic countries, and on the international stage with partners such as the United Kingdom and the United States, to ensure continued success in maintaining financial stability.


Related Link: Speech (PDF)

Keywords: Europe, EU, Banking, Resolution Regime, Banking Union, SRF Backstop, Supervisory Cooperation, SRB

Related Insights

EBA Single Rulebook Q&A: First Update for November 2018

EBA published answers to seven questions under the Single Rulebook question and answer (Q&A) updates for this week.

November 09, 2018 WebPage Regulatory News

FED Finalizes the Large Financial Institution Rating System

FED finalized the new supervisory rating system for Large Financial Institutions (LFIs), to better align with the current supervisory programs and practices for these firms.

November 09, 2018 WebPage Regulatory News

ECB Publishes Guides for Capital and Liquidity Management by Banks

ECB published the guides for capital and liquidity management by banks in EU.

November 09, 2018 WebPage Regulatory News

EC Amends Regulation on Prudent Valuation for Supervisory Reporting

EC published the amended Implementing Regulation (EU) 2018/1627 on prudent valuation for supervisory reporting. Regulation 2018/1627 amends the Implementing Regulation 680/2014.

November 09, 2018 WebPage Regulatory News

FED Intends to Publish the Financial Stability Report in November 2018

FED intends to begin publishing a semiannual report presenting its view of the outlook for U.S. financial stability, on November 28. The financial stability report will include a summary of the FED framework for assessing the resilience of the financial system in the United States.

November 09, 2018 WebPage Regulatory News

ESMA Asks Clients of CRAs and TRs to Prepare for No-Deal Brexit

ESMA issued a public statement to raise awareness, among the market participants, on the readiness of credit rating agencies (CRAs) and trade repositories (TRs) for the possibility of no agreement being reached in the context of the United Kingdom withdrawing from the European Union (Brexit).

November 09, 2018 WebPage Regulatory News

EIOPA Publishes Result of the Work of EU-US Insurance Dialog Project

EIOPA published four papers resulting from the work of the EU–U.S. Insurance Dialog Project (EU-U.S. Project) in 2018.

November 08, 2018 WebPage Regulatory News

EIOPA Publishes Q&A on Regulations in November 2018

EIOPA published new sets of questions and answers (Q&A) on implementing and delegated regulations applicable to insurers in Europe.

November 07, 2018 WebPage Regulatory News

APRA Finalizes CPS 234 to Help Combat Threat of Cyber Attacks

APRA has released the final version of its prudential standard focused on information security management.

November 07, 2018 WebPage Regulatory News

US Agencies Propose Reduced Reporting for Qualifying Institutions

US agencies (FDIC, FED, and OCC) proposed to reduce regulatory reporting burden on small institutions by expanding the number of regulated institutions eligible for streamlined reporting.

November 07, 2018 WebPage Regulatory News
RESULTS 1 - 10 OF 2192