SRB Outlines Upcoming Changes in Context of CRR2 and BRRD2
SRB published presentations made at the 8th Industry Dialogue in Brussels. The Industry Dialogue brings together representatives from EU-level and national banking federations and their associates from Banking Union participating member states, representatives from national resolution authorities, EC, European Parliament, and ECB. The presentations covered the implications of, and the expected work streams, in the context of the newer requirements in the revised Capital Requirements Regulation (CRR) and Bank Resolution and Recovery Directive (BRRD).
SRB will soon publish a Policy Statement, keeping in mind the requirements of CRR2 and BRRD2. Until the transposition of BRRD2, MREL decisions issued by SRB, including any applicable transition periods, will be based on the current legal framework of SRMR1/BRRD1, implemented via the SRB 2018 Minimum Requirement for own funds and Eligible Liabilities (MREL) policy. As per the presentation titled "MREL and Capital Requirements Regulation 2," the new provisions of the Banking Package will also change the SRB reporting needs:
- Additional data will be required on internal MREL and loss-absorbing capacity for resolution planning (set intermediate MREL targets) and monitoring.
- EBA is mandated to draft implementing technical standards on templates and these are to be finalized by around mid-2020.
- SRB needs to bridge the gap in the transitional period.
- SRB will front-load future EBA implementing technical standard templates by launching a new data collection exercise in the transitional period.
Furthermore, for implementing the new resolution planning cycle, SRB will consider 2019 as a transition period to prepare and implement the steady-state cycle; it will aim for decisions, in 2020, that take into account to the extent possible the new legal framework once it enters into force. Bail-in preparation, along with the development of bail-in playbook, is priority in 2019 and 2020. SRB is also working on the “Expectations for banks,” which complements the Resolvability Assessment. This document is intended to make the banks under the direct remit of SRB aware of its general expectations regarding the steps and initiatives that aim to ensure the resolvability of a bank. Individual work programs will be tailored on the basis of a dialog between Internal Resolution Teams and banks. SRB plans to consult the industry on the “Expectations for banks” in the fourth quarter of 2019. The expectations will be phased in over time.
Related Links
Keywords: Europe, EU, Banking, CRR2, BRRD2, MREL Policy, Resolution Planning, SRMR2, SRB
Featured Experts
Dieter Van der Stock
IFRS subject matter expert; accounting authority; risk management specialist
Previous Article
PRA Launches 2019 Stress Test Exercise for Life and General InsurersRelated Articles
|
News
APRA Revises Related Entities Standard for BanksAPRA published a strengthened prudential standard APS 222 on associations with related entities, with the aim to mitigate contagion risk within banking groups.
August 20, 2019
WebPage
Regulatory News
|
|
News
HKMA Revises Implementation Schedule for Initial Margin RulesHKMA intends to adopt a revised implementation schedule for the margin requirements for non-centrally cleared derivatives.
August 16, 2019
WebPage
Regulatory News
|
|
News
HKMA Revises Guideline on Application of Banking Disclosure RulesHKMA issued a revised version of the Supervisory Policy Manual module CA-D-1 on guideline on the application of the Banking (Disclosure) Rules (BDR).
August 16, 2019
WebPage
Regulatory News
|
|
News
ECB Decision on Recognizing Reporting Member States Under AnaCreditECB has finalized the Decision 2019/1348 (ECB/2019/20) that establishes procedure for recognizing non-euro area member states as reporting member states under the AnaCredit Regulation (EU 2016/867).
August 16, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes to Extend CECL Standard Deadline for Certain EntitiesFASB proposed an Accounting Standards Update that would grant private companies, not-for-profit organizations, and certain small public companies additional time to implement FASB standards on current expected credit losses (CECL), leases, and hedging.
August 15, 2019
WebPage
Regulatory News
|
|
News
IASB Adds Phase Two of IBOR Reform to Its Work PlanIASB (or the Board) has added the second phase of its project focused on potential financial reporting implications linked to the interest rate benchmark reform—interbank offer rate (IBOR) reform—to its work plan.
August 15, 2019
WebPage
Regulatory News
|
|
News
FED Updates Draft Instructions for Proposed FR Y-14 Reporting FormsFED updated draft instructions for the monthly, quarterly, and annual capital assessments and stress testing reports, also known as forms FR Y-14M, FR Y-14Q, FR Y-14A, respectively.
August 15, 2019
WebPage
Regulatory News
|
|
News
FASB Proposes Taxonomy Changes Related to Topics 326, 815, and 842FASB is proposing taxonomy improvements for the proposed Accounting Standards Update on clarifying the interactions among topic 321 on investments in equity securities), topic 323 on investments under equity method and joint ventures), and topic 815 on derivatives and hedging.
August 15, 2019
WebPage
Regulatory News
|
|
News
OCC Updates Bank Accounting Advisory Series in August 2019OCC released an update to the Bank Accounting Advisory Series (BAAS), which reflects accounting standards issued by FASB, through March 31, 2019, on topics such as hedging and credit losses.
August 15, 2019
WebPage
Regulatory News
|
|
News
APRA Consults on Final Phase Margin Rules for Uncleared DerivativesAPRA is consulting on amendments to the prudential standard CPS 226 on margin and risk mitigation requirements for non-centrally cleared derivatives.
August 14, 2019
WebPage
Regulatory News
|
