The Central Bank of Ireland published its approach to resolution for less significant banks and investment firms in Ireland. In this context, the bank also conducted its third Resolution Industry Briefing on May 30, 2019. The presentation from the event outlines the strategic plan of the central bank for 2019-2021, including the roadmap to implementing its approach to resolution for the less significant banks and certain investment firms. As per the briefing, over the next few years, the focus will be on strengthening resolvability of institutions, developing the resolution policy framework, and improving operational preparedness.
The key topics covered in the event included strengthening of resilience, the approach to resolution, valuation in resolution, the risk-reduction measures package, the revised prudential regime for investment firms, and the elements of Banking Union with respect to resolution. The briefing provides an overview of the national implementation of the risk-reduction measures package, along with its objectives and timeline. The risk-reduction measures package covers Capital Requirements Regulation (CRR) 2, Capital Requirements Directive (CRD) 5, Bank Recovery and Resolution Directive (BRRD) 2, and Single Resolution Mechanism Regulation (SRMR) 2. The briefing highlighted that the key areas of focus over the next few years include the following:
- Strengthen resolvability of institutions, by developing resolution plans, (where relevant) setting minimum requirement for own funds and eligible liabilities (MREL) requirements, and removing identified barriers to resolution
- Develop the resolution policy framework, making the approach to resolution more effective, more transparent, and better understood
- Improve operational preparedness, including by designing and conducting simulation exercises under different scenarios
- Be an effective and trusted member of the Single Resolution Mechanism and work closely with the Single Resolution Board for firms within their remit
Keywords: Europe, Ireland, Banking, Resolution, CRR2, CRD 5, SRMR 2, BRRD 2, MREL, Less Significant Institutions, Banking Union, Central Bank of Ireland
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