SRB published its annual report for 2019. The annual report offers an overview of the SRB work and highlights its achievements and progress during the year. During 2019, SRB made continued progress in strengthening the resolution framework, advancing resolution planning, and further intensifying the dialog with banks and resolution and supervisory authorities in the Banking Union and beyond.
As outlined in the multi-annual work program for 2018 to 2020, SRB continued to focus its work in 2019 on certain operational areas by strengthening resolvability for significant and less significant institutions, fostering a robust resolution framework, preparing and carrying out effective crisis management, operationalizing the Single Resolution Fund, and establishing a lean and efficient organization. In 2019, SRB further strengthened and updated resolution plans for banks under its remit, based on the most recent MREL policy and other resolution policies, while incorporating the first provisions of the Banking Package. SRB updated and improved 106 resolution plans in close cooperation with the national resolution authorities and contributed to five host plans drafted by other EU group-level resolution authorities. In 2019, the newly created Resolution Planning Cycle Steering Committee coordinated the considerable efforts to align resolution planning for all SRB banks to the same twelve-month cycle as of April 2020. The Expectations for Banks document was another key deliverable in 2019. The document builds on the Resolution Planning Manual and is a useful guide for financial institutions. In addition, SRB carried forward work on important aspects such as operational continuity, solvent wind-down, and liquidity in resolution and valuation. SRB also published the second part of its MREL policy for 2018, along with an addendum and the policy outlining approach of SRB for the public interest assessment.
SRB continues to collaborate closely with EBA and ECB on resolution reporting. EBA has elaborated the XBRL taxonomy in its EBA 2.9 framework, used by SRB as the basis for preparing its 2020 data collection and extended by SRB to cover specific data not required by EBA. This collaboration aims to reduce the reporting burden for banks by avoiding double reporting of identical data points. During the Summer of 2019, SRB executed its first sequential reporting to EBA, wherein all reports received by SRB (both in XBRL and in Excel format) were sent to EBA. Looking ahead, SRB and EBA envisage automating this process for the 2020 collection. In the early Spring of 2019, SRB worked in close collaboration with the national resolution authorities to update the 2020 Data Reporting Form and to automate the receipt by SRB of the support templates of national resolution authorities for the 2020 ex ante contribution cycle. Work will continue in 2020 with regard to the Backstop Facility Agreement, which will specify the detailed financial terms and conditions, for which some aspects remain for discussion.
Keywords: Europe, EU, Banking, Annual Report, Resolution Framework, Resolution Planning, Reporting, Framework 2.9, XBRL Taxonomy, Crisis Management Framework, EBA, SRB
Previous ArticleHKMA Indicates Its Supervisory Approach to Addressing Climate Risks
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.
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.
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).
The Malta Financial Services Authority (MFSA) updated the guidelines on supervisory reporting requirements under the reporting framework 3.0.
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.
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.
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.
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.
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.
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.