Featured Product

    SRB Outlines Upcoming Changes in Context of CRR2 and BRRD2

    June 18, 2019

    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
    Related Articles
    News

    EBA Guide to Monitor Threshold for Intermediate Parent Undertakings

    The European Banking Authority (EBA) published the final guidelines on the monitoring of the threshold and other procedural aspects on the establishment of intermediate parent undertakings in European Union (EU), as laid down in the Capital Requirements Directive (CRD).

    July 28, 2021 WebPage Regulatory News
    News

    PRA Finalizes Approach to Supervision of International Banks

    In a recent Market Notice, the Bank of England (BoE) confirmed that green gilts will have equivalent eligibility to existing gilts in its market operations.

    July 26, 2021 WebPage Regulatory News
    News

    FCA Issues PS21/9 on Implementation of Investment Firms Regime

    The Financial Conduct Authority (FCA) published the policy statement PS21/9 on implementation of the Investment Firms Prudential Regime.

    July 26, 2021 WebPage Regulatory News
    News

    EBA Proposes Regulatory Standards to Identify Shadow Banking Entities

    The European Banking Authority (EBA) proposed regulatory technical standards that set out criteria for identifying shadow banking entities for the purpose of reporting large exposures.

    July 26, 2021 WebPage Regulatory News
    News

    IOSCO Proposes Recommendations on ESG Ratings and Data Providers

    The Board of the International Organization of Securities Commissions (IOSCO) proposed a set of recommendations on the environmental, social, and governance (ESG) ratings and data providers.

    July 26, 2021 WebPage Regulatory News
    News

    ESMA Group Issues Recommendations on RFR Switch in Interdealer Market

    The European Securities and Markets Authority (ESMA) published recommendations from the Working Group on Euro Risk-Free Rates (RFR) on the switch to risk-free rates in the interdealer market.

    July 26, 2021 WebPage Regulatory News
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    EIOPA Consults on Reporting and Disclosures Under Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) proposed to amend the supervisory statement on supervision of run-off undertakings that are subject to Solvency II regulation.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7295