General Information & Client Service
  • 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 31, 2018

EBA published the first report on the functioning of resolution colleges. EBA monitored the activities of 13 colleges established for large cross-border banking groups. The report summarizes assessment of the quality of the colleges' organization, discussions held, and general output. Overall, the report finds that good progress has been achieved since the introduction of the Bank Recovery and Resolution Directive (BRRD) in 2015, also considering that most colleges are only in their second year of operation.

The report found that, in 2017, resolution authorities were broadly compliant with the regulations regarding the operational aspects of colleges. In particular, their level of engagement has progressively intensified and they have managed to meet most of the deadlines for reaching joint decisions. EBA stresses that the meetings of colleges are required to take place at least once a year, that resolution planning information should be properly circulated ahead of the meetings, and that minutes should be promptly shared with members after the meetings. The quality of the observed discussions has improved over the last two years, with noticeably greater contribution from host authorities. However, the report identifies that the quality varied between meetings and that additional progress is needed in some important areas, such as the interlinkages between recovery and resolution.

Also, the quality of college outputs has improved. In 2017, the college members discussed and reached joint decisions on resolution plans and resolvability assessments as well as on consolidated Minimum Requirement for Own Funds and Eligible Liabilities (MREL) for most of the colleges monitored. EBA also observed progress on the removal of impediments, with banks building up their levels of MREL-eligible debt as well as making progress in the inclusion of robust resolution clauses in their contracts for critical services. However, the report notes that resolution is a complex matter, which requires further progress and continued effort to ensure college members are well-prepared to deal with the failure of a cross-border bank. The report identifies the following key improvements:

  • Most resolution plans need further improvement in some key operational aspect.
  • Progress is needed in removing impediments to resolvability.
  • MREL needs to be set at solo level to ensure an adequate distribution of loss-absorbing capacity within groups.


Related Links

Keywords: Europe, EU, Banking, BRRD, Resolution Colleges, MREL, EBA

Related Insights

PRA Delays Final Direction on Reporting of Private Securitizations

PRA and FCA have delayed the issuance of final direction, including the final template, on reporting of private securitizations, from January 15, 2019 to the end of January 2019.

January 15, 2019 WebPage Regulatory News

BCBS Finalizes Market Risk Capital Framework and Work Program for 2019

BCBS published the final framework for market risk capital requirements and its work program for 2019. Also published was an explanatory note to provide a non-technical description of the overall market risk framework, the changes that have been incorporated into in this version of the framework and impact of the framework.

January 14, 2019 WebPage Regulatory News

EBA Single Rulebook Q&A: First Update for January 2019

EBA published answers to 13 questions under the Single Rulebook question and answer (Q&A) updates for this week.

January 11, 2019 WebPage Regulatory News

PRA Proposes to Amend Supervisory Statement on Credit Risk Mitigation

PRA published the consultation paper CP1/19 that is proposing changes to the supervisory statement (SS17/13) on credit risk mitigation.

January 10, 2019 WebPage Regulatory News

FASB Issues Q&A on Estimating Credit Loss Reserves

FASB issued a question-and-answer (Q&A) document that addresses particular issues related to the weighted average remaining maturity (WARM) method for estimating the allowance for credit losses.

January 10, 2019 WebPage Regulatory News

FED Updates Reporting and Supplemental Instructions for Form FR Y-9C

FED published the updated reporting instructions and supplemental instructions for the FR Y-9C reporting form. The reporting frequency for FR Y-9C is quarterly, as of the last calendar day of the quarter.

January 09, 2019 WebPage Regulatory News

PRA Updates Policy on Liquidity Reporting Under FSA047/048 and PRA110

PRA published the policy statement PS1/19 that provides feedback to responses to the consultation paper CP22/18 titled "Liquidity reporting: FSA047 and FSA048" and the proposal in CP16/18, which intended to correct the level of consolidation of the PRA110 reporting requirements.

January 08, 2019 WebPage Regulatory News

FED Proposes to Amend Company-Run Stress Testing Requirements

FED proposed to modify company-run stress testing requirements to conform with the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

January 08, 2019 WebPage Regulatory News

ESMA RTS on Supervisory Cooperation Under Securitization Regulation

ESMA issued the final regulatory technical standards (RTS) for cooperation between competent authorities and ESAs under the Securitization Regulation (2017/2402).

January 08, 2019 WebPage Regulatory News

ESAs Publish Joint Report on Regulatory Sandboxes and Innovation Hubs

ESAs published a joint report providing a comparative analysis of the innovation facilitators (that is, regulatory sandboxes and innovation hubs) established to date within the EU.

January 07, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 2461