PRA published the policy statement PS11/18, which provides feedback to responses to the consultation paper CP1/18 and sets out the final expectations of PRA on minimum requirement for own funds and eligible liabilities (MREL) reporting. PS1/18 had proposed the expectations for MREL reporting, including the level of application, frequency, format, and implementation timetable, through an update to the supervisory statement SS19/13. The updated SS19/13 will take effect from January 01, 2019. The appendices to PS11/18 set out the updated SS19/13 on resolution planning (Appendix 1), along with the reporting templates and instructions (Appendix 2).
Additionally, BoE published the responses to consultation and statement of policy on BoE's approach to setting MREL. PRA received three responses to CP1/18. Respondents were broadly supportive of the proposals. After considering the responses, PRA has made minor amendments to the draft supervisory statement, to take a more proportionate approach in respect of the frequency of reporting and to add further clarity on the draft templates and guidance. Chapter 2 of PS11/18 summarizes the issues raised by respondents and provides further details of the changes. PRA also amended the draft supervisory statement as a result of further analysis. Chapter 3 of PS11/18 includes minor amendments, including changing the numbering of the templates and adding columns to assist reporting of maturity breakdown.
PRA considers that these changes enhance the clarity and proportionality of the relevant expectations and will, therefore, reduce the burden on firms relative to the original proposal in CP1/18. Firms are expected to use the BoE Electronic Data Submission (BEEDS) portal for the submission of all returns. BoE is planning for firms to submit the MREL returns from January 2019 and will contact firms to facilitate reporting.
- PS11/18 and CP1/18
- MREL Reporting Templates (XLSX)
- Reporting Instructions (PDF)
- Responses to Consultation and Statement of Policy
Effective Date: January 01, 2019 (SS19/13)
Keywords: Europe, UK, Banking, MREL, Reporting, Resolution Planning, PS11/18, SS19/13, Responses to Consultation, PRA
Previous ArticleFED Adopts Final Rule on SCCL for Large Banking Organizations
ECB published a decision allowing the euro area banks under its direct supervision to exclude certain central bank exposures from the leverage ratio.
ESAs launched a survey seeking feedback on the presentational aspects of product templates under the Sustainable Finance Disclosure Regulation (SFDR or Regulation 2019/2088).
ECB published input of the European System of Central Banks (ESCB) into the EBA feasibility report on reducing the reporting burden for banks in EU.
ECB finalized the guide on assessment methodology for the internal model method for calculating exposure to counterparty credit risk (CCR) and the advanced method for own funds requirements for credit valuation adjustment (A-CVA) risk.
EBA published an Opinion addressed to EC to raise awareness about the opportunity to clarify certain issues related to the definition of credit institution in the upcoming review of the Capital Requirements Directive and Regulation (CRD and CRR).
APRA is consulting on updates to ARS 210.0, the reporting standard that sets out requirements for provision of information on liquidity and funding of an authorized deposit-taking institution.
FED released hypothetical scenarios for a second round of stress tests for banks.
FED is proposing to temporarily revise the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes necessary to conduct stressed analysis in connection with the re-submission of capital plans, using data as of June 30, 2020.
FED adopted a proposal to extend for three years, with revision, the information collection under the market risk capital rule (FR 4201; OMB No. 7100-0314).
EBA published a voluntary online survey seeking input from credit institutions on their practices and future plans for Pillar 3 disclosures on the environmental, social, and governance (ESG) risks.