Featured Product

    EC Publishes Regulation (EU) 2019/348 that Supplements BRRD

    March 04, 2019

    EC published the Delegated Regulation (EU) 2019/348 on regulatory technical standards specifying the criteria for assessing the impact of the failure of an institution on financial markets, on other institutions, and on funding conditions. Regulation (EU) 2019/348 supplements the Bank Recovery and Resolution Directive or BRRD (Directive 2014/59/EU) of the European Parliament and Council. Regulation (EU) 2019/348 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

    BRRD requires the member states to ensure that competent and resolution authorities assess the impact that the failure of an institution could have due to a number of factors specified in that Article 4(1) of the Directive. This involves conducting assessment based on certain qualitative and quantitative criteria. The assessment based on qualitative criteria should only be conducted where the assessment on the basis of quantitative criteria does not lead to the conclusion that, in the light of the impact that the institution's failure could have, full obligations, rather than merely simplified obligations, are required. To ensure a convergent and effective application of Regulation (EU) 2019/348, competent and resolution authorities should assess the quantitative criteria against an EU common threshold in the form of a total quantitative score. Competent and resolution authorities should calculate that total quantitative score in accordance with a set of indicators, using the values from the applicable supervisory reporting framework laid down in Implementing Regulation (EU) No 680/2014.

    The first four articles of Regulation (EU) 2019/348 describe the qualitative and quantitative assessment criteria for credit institutions and investment firms. The regulation also addresses assessments for institutions belonging to groups (Article 5), promotional banks (Article 6), and credit institutions subject to an orderly winding-up process (Article 7). Considering the different purposes of recovery and resolution planning, competent and resolution authorities from the same member state may reach different conclusions about the application of Articles 1 to 4, 6 and 7, in which case they shall regularly assess whether those different conclusions remain justified. The first two Annexes to this regulation cover indicators and/or weights for calculating the total quantitative score for credit institutions and investment firms. The values of the indicators shall be determined on the basis of the indicators specified in Annex III. Regulation (EU) 2019/348 is based on the draft regulatory technical standards submitted by EBA to EC.


    Related Links

    Effective Date: March 24, 2019

    Keywords: Europe, EU, Banking, BRRD, Regulation 2019/348, Recovery and Resolution, Regulatory Technical Standards, EBA, EC

    Related Articles
    News

    ESMA Releases Enforcement Priorities for 2019 Annual Financial Reports

    ESMA published a statement on the priorities that European enforcers will consider when examining the 2019 annual financial reports of listed companies.

    October 22, 2019 WebPage Regulatory News
    News

    EC Consults on Alternative Standardized Approach for Market Risk

    EC is consulting on a delegated regulation amending the Capital Requirements Regulation (CRR) with regard to the alternative standardized approach for market risk.

    October 21, 2019 WebPage Regulatory News
    News

    CPMI Report Examines Impact of Global Stablecoins

    This report by the G7 Working Group on Stablecoins finds that stablecoins, regardless of size, have implications ranging from anti-money laundering efforts across jurisdictions to operational resilience (including for cyber security), consumer or investor and data protection, and tax compliance.

    October 18, 2019 WebPage Regulatory News
    News

    BoE Announces Date for Publication of Stress Test Results for Banks

    BoE announced its plans to publish results of the full UK annual stress tests on December 10, 2019.

    October 18, 2019 WebPage Regulatory News
    News

    US Agencies Request Comments on Use and Impact of CAMELS Ratings

    US Agencies (FDIC and FED) are seeking information and comments from interested parties regarding the consistency of ratings assigned by the agencies under the Uniform Financial Institutions Rating System (UFIRS).

    October 18, 2019 WebPage Regulatory News
    News

    PRA Consults on Approach to Supervising Liquidity and Funding Risks

    In consultation paper (CP27/19), PRA published a proposal (CP27/19) to update the supervisory statement SS24/15 on the PRA approach to supervising liquidity and funding risk.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Consult on Policy Statement on Allowance for Credit Losses

    US Agencies (FDIC, FED, NCUA, and OCC) are consulting on the policy statement on allowances for credit losses and on the guidance on credit risk review systems.

    October 17, 2019 WebPage Regulatory News
    News

    FSI Paper Examines Use of Suptech Initiatives by Financial Authorities

    The Financial Stability Institute (FSI) of BIS published a paper that examines the suptech developments by analyzing suptech initiatives of 39 financial authorities globally.

    October 17, 2019 WebPage Regulatory News
    News

    US Agencies Publish Notice to Extend Form FFIEC 102 for Three Years

    US Agencies (FDIC, FED, and OCC) published a joint notice regarding extension of the market risk regulatory report for institutions subject to the market risk capital rule (FFIEC 102).

    October 17, 2019 WebPage Regulatory News
    News

    ECB Publishes Recommendations on Euro Risk-Free Rates Transition

    ECB published a report, by private sector working group on euro risk-free rates, which contains recommendations, from a risk management perspective, on the transition to new risk-free rates.

    October 17, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 4006