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

    EC Delegated Regulation on Specialized Lending Exposures Under CRR

    EC finalized the Delegated Regulation 2021/598 that supplements the Capital Requirements Regulation (CRR or 575/2013) and lays out the regulatory technical standards for assigning risk-weights to specialized lending exposures.

    April 14, 2021 WebPage Regulatory News
    News

    OSFI Consults on Minimum Qualifying Rate for Uninsured Mortgages

    OSFI is proposing new minimum qualifying rate for uninsured mortgages under the Guideline B-20.

    April 13, 2021 WebPage Regulatory News
    News

    OSFI Issues Letter on ICAAP Submission and Internal Audit of BCAR

    OSFI issued a letter to confirm that a formal Internal Capital Adequacy Assessment Process (ICAAP) submission is not required in 2021.

    April 12, 2021 WebPage Regulatory News
    News

    ECB Updates List of Supervised Entities in EU in April 2021

    ECB updated the list of supervised entities in EU, with the number of significant supervised entities amounting to 115 as of the March 01, 2021 cut-off date.

    April 12, 2021 WebPage Regulatory News
    News

    ESMA Issues Notification Templates for STS Synthetic Securitizations

    ESMA published the interim simple, transparent, and standardized (STS) notification templates for synthetic securitizations, post the recent amendments to the Securitization Regulation.

    April 09, 2021 WebPage Regulatory News
    News

    EC Agrees to Prolong Scheme to Support NPL Reduction at Greek Banks

    EC has approved the prolongation of an existing Greek scheme aiming to support the reduction of nonperforming loans, or NPLs, of Greek banks on the basis that it remains free of any State aid.

    April 09, 2021 WebPage Regulatory News
    News

    EIOPA Study Examines Internal Model Market and Credit Risks Under SII

    EIOPA published a report presenting the results of its yearly study on the internal modeling of market and credit risks under the Solvency II Directive, also known as SII.

    April 09, 2021 WebPage Regulatory News
    News

    EBA Issues Erratum for Phase 2 Package of Reporting Framework 3.0

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    EBA Updates Lists of Entities for Use in Capital Calculations under SA

    EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.

    April 08, 2021 WebPage Regulatory News
    News

    FED Proposes to Automate Bank Stock Adjustment Using Call Report Data

    FED published a proposal to automate non-merger-related adjustments to member banks' subscriptions to Federal Reserve Bank capital stock.

    April 08, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6835