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
PRA Proposes Reporting Amendments to Pillar 2 Liquidity FrameworkRelated Articles
ECB Further Reviews Costs and Benefits Associated with IReF
The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.
BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules
The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.
IOSCO Welcomes Work on Sustainability-Related Corporate Reporting
The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)
EBA Publishes Funding Plans Report, Receives EMAS Certification
The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).
BoE Allows One-Day Delay in Statistical Data Submissions by Banks
The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.
ACPR Amends Reporting Module Timelines Under EBA Framework 3.2
The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.
APRA to Modernize Prudential Architecture, Reduces Liquidity Facility
The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.
PBC Issues List of Systemic Banks, Adds 2 Foreign Banks to CERB List
The China Banking and Insurance Regulatory Commission (CBIRC) published the administrative measures for internal control of wealth management companies, which come into force on the day of promulgation.
PRA Publishes Discussion Paper on Its Future Approach to Policy
The Prudential Regulation Authority (PRA) proposed its approach to policy-making as it takes on wider rulemaking responsibilities under the Financial Services and Markets Bill.
ECB Publishes Opinion on Proposed Regulation on Data Act
The European Central Bank (ECB) published its opinion on the proposal for a regulation on harmonized rules on fair access to and use of data (Data Act).
