SRB Publishes Expectations to Ensure Bank Resolvability Post Brexit
SRB published a position paper on its expectations about the resolvability of banks in the context of Brexit. The position paper focuses on expectations in six key areas: minimum requirement for own funds and eligible liabilities (MREL) eligibility, internal loss absorbency, operational continuity, access to financial market infrastructures, governance, and management information systems.
In the context of Brexit, SRB reiterated its core requirements in the interest of transparency. They do not preclude future SRB policy development. The expectations set out in this position paper are aligned with the working priorities communicated on an individual basis to banks that are already under the SRB remit. The requirements apply to Banking Union banks, be it either banks with significant activities in third countries or Banking Union subsidiaries of third country banking groups. These banks include the following:
- Groups that are headquartered in the Banking Union and have significant business or operational activities in third countries or will maintain such activities in the UK post Brexit (including but not limited to issuance of debt instruments under UK law)
- Subsidiaries, under the remit of SRB, of groups headquartered in the UK or in third countries, which have significant business or operational activities in the Banking Union
As a result of the UK leaving the EU, some UK or third-country banking groups have decided to relocate their UK-based activities to the EU27 or to increase the extent or scope of existing activities therein. Also, some banks under the SRB remit may have significantly increased business or operational activities in third countries. SRB and the Supervisory Board of ECB are cooperating closely to ensure the requests of both authorities are aligned and conveyed to banking groups coherently and effectively. The elements presented in the position paper are consistent with the EBA Opinions on Brexit (EBA/Op/2018/05 and EBA/Op/2017/12) and in line with international standards on resolvability.
Related Links
Keywords: Europe, EU, Banking, Brexit, Resolvability, MREL, Loss Absorbency, FMI, Banking Union, SRB
Previous Article
EC Amends Rule on Internal Model Benchmarking Under CRD IVRelated Articles
|
News
ESAs Amend Technical Standards on Mapping of ECAIs Under CRRESAs published a second amendment to the implementing technical standards on the mapping of credit assessments of External Credit Assessment Institutions (ECAIs) for credit risk under the Capital Requirements Regulation (CRR).
May 20, 2019
WebPage
Regulatory News
|
|
News
OCC Consults on Information Collection for Home Mortgage DisclosuresOCC is soliciting comment on the revision of the information collection titled “Regulation C—Home Mortgage Disclosure.” OCC also notes that it has sent the collection to OMB for review.
May 20, 2019
WebPage
Regulatory News
|
|
News
EIOPA Updates Q&A on Regulations in May 2019EIOPA published additional questions and answers (Q&A) on guidelines, directives, and regulations applicable to insurers in Europe.
May 17, 2019
WebPage
Regulatory News
|
|
News
FSB Publishes Update on Meeting of RCG for AmericasFSB published a summary of the meeting of its Regional Consultative Group (RCG) in Americas.
May 17, 2019
WebPage
Regulatory News
|
|
News
IASB Issues Work Plan and Meeting Updates for May 2019IASB published an updated work plan, along with the update of its meeting in May 2019.
May 17, 2019
WebPage
Regulatory News
|
|
News
FCA Publishes Its Business Plan for the Coming YearFCA published its Business Plan, which sets out the main areas of focus and priorities for 2019/20.
May 17, 2019
WebPage
Regulatory News
|
|
News
CFTC Proposes to Amend Derivatives Clearing Organization RegulationsCFTC proposed amendments to certain regulations applicable to registered derivatives clearing organizations (DCOs) under Part 30 of the CFTC regulations.
May 16, 2019
WebPage
Regulatory News
|
|
News
APRA Licenses Societe Generale As Foreign Deposit-Taking InstitutionAPRA granted Societe Generale a license to operate as a foreign authorized deposit-taking institution under the Banking Act of 1959.
May 16, 2019
WebPage
Regulatory News
|
|
News
EBA Provides Updates on Its Work on Basel III Impact Assessment in EUEBA is working to finalize the impact assessment on implementation of Basel III standards, in response to the EC call for advice, which was received on May 04, 2018.
May 16, 2019
WebPage
Regulatory News
|
|
News
ISDA Publishes Two Consultations on Benchmark FallbacksISDA published two consultations on benchmark fallbacks, the comment periods for which expire on July 12, 2019.
May 16, 2019
WebPage
Regulatory News
|
