Featured Product

    SRB Updates MREL Policy to Reflect Changes in CRR 2

    June 25, 2019

    SRB updated its policy on minimum requirement for own funds and eligible liabilities (MREL) as a result of the revisions in the recent Banking Package. The package includes the revised Capital Requirements Directive (CRD V or EU Directive 2019/878), the revised Capital Requirements Regulation (CRR 2 or Regulation 2019/876), the revised Bank Recovery and Resolution Directive (BRRD 2 or Directive (EU) 2019/879), and the revised Single Resolution Mechanism Regulation (SRMR II or Regulation (EU) 2019/877). This policy update is an addendum to the 2018 SRB MREL policy for the second wave of resolution plans, which was published on January 16, 2019. The policy update covers the CRR 2 provisions , which will become applicable on June 27, 2019.

    The policy update applies to all institutions for which MREL decisions have or will be taken for the 2018 and 2019 resolution planning cycles. The addendum is intended to inform institutions in the SRB remit about regulatory changes in CRR 2 in the area of resolution and their interaction with the MREL decisions of SRB. With this addendum, SRB is also informing institutions about the implementation of CRR provisions related to the total loss-absorbing capacity (TLAC) requirements for global systemically important institutions (G-SIIs) as well as the permission regime under Article 78a of CRR, which is applicable to all institutions. 

    The major elements of the new MREL framework, other than the TLAC requirement, will become applicable on December 28, 2020. National transposition and application of BRRD 2 by member states will also be due by December 28, 2020. Until then, MREL decisions issued by SRB, including any applicable transition periods, will be based on the current legal framework of SRMR (Regulation No 806/2014) and BRRD (Directive 2014/59/EU), implemented via the 2018 MREL policy of SRB for the second wave of resolution plans. SRB intends to publish, by the beginning of 2020, the "MREL Policy 2020,” which will form the basis for MREL setting under the new framework of BRRD 2/SRMR 2 for all institutions in the resolution planning cycle starting in 2020. SRB expects to communicate these future MREL decisions to banks in early 2021.

     

    Related Links

    Effective Date: June 27, 2019

     

    Keywords: Europe, EU, Banking, MREL, TLAC, G-SII, Basel III, Systemic Risk, Resolution Framework, CRR2, SRMR2, BRRD2, SRB

    Featured Experts
    Related Articles
    News

    EBA Single Rulebook Q&A: Second Update for September 2019

    EBA updated the Single Rulebook question and answer (Q&A) tool with answers to three questions.

    September 13, 2019 WebPage Regulatory News
    News

    PRA Revises Branch Return and Updates Guidance for Regulatory Reports

    PRA published the policy statement PS17/19, which contains the final policy related to changes in the format and content of the Branch Return Form and reporting guidance.

    September 12, 2019 WebPage Regulatory News
    News

    ECB Publishes Version 1.5 of AnaCredit Validation Checks

    ECB published Version 1.5 of the AnaCredit validation checks.

    September 12, 2019 WebPage Regulatory News
    News

    FINMA Outlines Treatment of Stablecoins in Supplement to Guide on ICO

    FINMA published a supplement to its initial coin offerings (ICOs) guidelines, outlining the treatment for stablecoins under the Swiss supervisory law.

    September 11, 2019 WebPage Regulatory News
    News

    FCA and BoE Issue Updates on Brexit Preparations for Financial Sector

    FCA and BoE published important information to help regulated firms in preparing for Brexit.

    September 11, 2019 WebPage Regulatory News
    News

    Ursula von der Leyen Presents Structure of Next European Commission

    President-elect Ursula von der Leyen has presented her team and the new structure of the next European Commission.

    September 10, 2019 WebPage Regulatory News
    News

    FED Proposes to Revise and Extend Reporting Form on Systemic Risk

    FED proposed to extend for three years, with revision, the Banking Organization Systemic Risk Report (FR Y-15; OMB No. 7100-0352).

    September 10, 2019 WebPage Regulatory News
    News

    EBA Issues Revised List of Validation Rules for Reporting

    EBA published the revised list of validation rules (version 2.9) in its implementing technical standards on supervisory reporting.

    September 10, 2019 WebPage Regulatory News
    News

    Bundesbank Publishes Supplementary Validation Rules for Reporting

    Bundesbank published the updated document containing supplementary validation rules in the context of the implementation of the reporting system at national level.

    September 10, 2019 WebPage Regulatory News
    News

    APRA Licenses Xinja Bank as Authorized Deposit-Taking Institution

    APRA granted Xinja Bank Limited a license to operate as an authorized deposit-taking institution without restrictions, under the Banking Act 1959.

    September 09, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3807