Featured Product

    EBA Consults on Guidelines to Improve Bank Resolvability

    March 17, 2021

    EBA proposed the guidelines on improving resolvability of banks. These guidelines set out the resolvability requirements for institutions or resolution groups for which the strategy involves the use of resolution powers as opposed to a liquidation procedure. The bulk of the guidelines are addressed to institutions, though some requirements also target the resolution authorities as they need to assist institutions in improving resolvability. The comment period for the proposed guidelines ends on June 17, 2021, with the final guidelines being aimed for publication by the first half of 2021. EBA stipulates that institutions and authorities in scope of these guidelines should comply in full by January 01, 2024.

    The guidelines aim to implement existing international standards on resolvability and take stock of the best practices developed by EU resolution authorities on resolvability topics. The guidelines set out requirements to improve resolvability in the areas of operational continuity in resolution, access to financial market infrastructures, funding and liquidity in resolution, bail-in execution, business reorganization, and communication. However, they do not cover all topics relevant to resolvability either because those topics are covered elsewhere (for example, the calibration and eligibility of loss absorbing capacity is extensively covered in BRRD Directive) or because those topics will be further specified in future EBA regulatory products (for example, transferability). Certain requirements laid down in these guidelines may be resolution-tool-specific (for example, bail-in playbook) and the extent of their application to other resolution tools is left to the discretion of the resolution authority. To ensure proportionality, these guidelines are not mandatorily applicable for institutions, groups, or resolution groups that benefit from the simplified obligation regime, for which the extent of their possible application is left to the discretion of the relevant resolution authorities. These guidelines will be updated on a regular basis as progress is achieved on relevant policy topics, both at international and EU levels.

     

    Related Links

    Comment Due Date: June 17, 2021

    Keywords: Europe, EU, Banking, Resolution Planning, BRRD, Proportionality, Bail-In, Resolution Framework, MREL, EBA

    Related Articles
    News

    EC to Defer Application of SFDR Standards Till July 2022

    The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.

    July 23, 2021 WebPage Regulatory News
    News

    BoE Consults on Approach to Setting MREL, Publishes Bail-In Guidance

    The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.

    July 22, 2021 WebPage Regulatory News
    News

    EBA Seeks Views on Proportionality Assessment Methodology

    The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.

    July 22, 2021 WebPage Regulatory News
    News

    US Agencies Propose Changes to Call Reports and Instructions

    Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.

    July 22, 2021 WebPage Regulatory News
    News

    PRA Finalizes Rulebook Definition of Higher Paid Material Risk-Taker

    The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Examines Asset Encumbrance in Banking Sector

    The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.

    July 21, 2021 WebPage Regulatory News
    News

    EBA Publishes Methodological Guide to Mystery Shopping

    The European Banking Authority (EBA) published a methodological guide to mystery shopping.

    July 21, 2021 WebPage Regulatory News
    News

    APRA Issues Update on Capital Reform Policy Settings for Banks

    The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.

    July 21, 2021 WebPage Regulatory News
    News

    CPMI-IOSCO Assess Continuity Planning of Market Infrastructures

    The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.

    July 21, 2021 WebPage Regulatory News
    News

    ESMA Responds to Proposal Related to Sustainability Standards Board

    The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.

    July 21, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7283