Featured Product

    EBA Proposes to Enhance Early Intervention Measures in BRRD

    June 26, 2020

    EBA published a discussion paper exploring the ways to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. In this paper, EBA introduces some of the most important implementation issues in the area of early intervention measures. The paper intends to provide preliminary views on how these implementation issues could be addressed and offers stakeholders the opportunity to provide early input. Comment period for the discussion paper will end on September 25, 2020.

    Early intervention is one of the three pillars of the BRRD, with preparation (recovery and resolution planning) and resolution being the other two pillars. BRRD introduced early intervention measures to expand the existing set of powers available to supervisors toward institutions in difficulties. While monitoring the application of early intervention measures in 2015-2018, EBA observed a limited use of early intervention measures across EU during that period. Instead of early intervention measures, the competent authorities often preferred to apply other pre-BRRD supervisory powers available to them. EBA investigated the reasons for these supervisory practices. While recognizing that early intervention measures could be successfully implemented under the existing regulatory framework, EBA identified some challenges in their application. The paper discuses some of the most important implementation issues in the area of early intervention measures. The objective is to further enhance crisis management tools available for competent authorities, in addition to the well-established and widely used supervisory powers laid down in the Capital Requirements Directive (CRD) and in the Single Supervisory Mechanism Regulation.

    The discussion paper also presents the results of the survey on the application of early intervention measures that EBA conducted among the competent authorities in the first half of 2019. This monitoring covered three aspects: the existing practices in policy implementation, the empirical data on application of early intervention measure across EU, and the key challenges in applying early intervention measure identified by the competent authorities. The key challenges faced by supervisors in the application of the current regulatory framework on the early intervention measures have been grouped into the following categories:

    • Interaction between early intervention measure and other supervisory powers (for example, measures according to Article 104 CRD)
    • Disclosure and reputation risks related to possible obligations to disclose the application of early intervention measures to market participants
    • Specification of early intervention triggers

     

    Related Links

    Comment Due Date: September 25, 2020

    Keywords: Europe, EU, Banking, BRRD, Early Intervention Measures, CRD, Disclosures, Resolution Framework, Crisis Management Framework, EBA

    Featured Experts
    Related Articles
    News

    BSP Tackles Aspects of Lending and Islamic, Open & Sustainable Finance

    The Central Bank of the Philippines (BSP) issued communications covering developments related to online lending platforms, open finance framework and roadmap, and on the expected regulations in the area sustainable finance.

    January 16, 2022 WebPage Regulatory News
    News

    US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint

    The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.

    January 13, 2022 WebPage Regulatory News
    News

    EBA Issues Guide on Bank Resolvability, Consults on Transferability

    The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).

    January 13, 2022 WebPage Regulatory News
    News

    MFSA Publishes CRD5 Updates and Supervisory Priorities for 2022

    The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.

    January 13, 2022 WebPage Regulatory News
    News

    HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets

    The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.

    January 12, 2022 WebPage Regulatory News
    News

    FCA Registers Securitization Repositories; PRA Issues 2022 Priorities

    The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.

    January 12, 2022 WebPage Regulatory News
    News

    EC Regulation Sets Out Methods for Measuring K-Factors Under IFR

    The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.

    January 11, 2022 WebPage Regulatory News
    News

    BIS Studies How Platform Models Impact Financial Stability & Inclusion

    The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.

    January 10, 2022 WebPage Regulatory News
    News

    CBE Issues Additional Measures to Ease Disruptions from Pandemic

    The Central Bank of Egypt (CBE) published a circular with instructions on emergency liquidity assistance to banks that are unable to meet their liquidity requirements.

    January 10, 2022 WebPage Regulatory News
    News

    ESAs Publish List of Financial Conglomerates for 2021

    The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.

    January 07, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 7868