BaFin Consults on Revisions to Requirements for Implementing Bail-In
BaFin launched a consultation (16/2020) on revisions to the circular on the minimum requirements for the feasibility of a bail-in. BaFin had published the original circular on the minimum requirements for the feasibility of a bail-in on July 04, 2019. The planned new version of the circular is aimed at all institutions under the direct responsibility of BaFin as the national resolution authority, for which no insolvency scenario has been defined as a resolution strategy. The consultation closes on December 16, 2020.
The draft version contains requirements for the management information systems of the concerned institutions. The requirements are intended to ensure provision of the information necessary for an effective and efficient implementation of the resolution instruments, for the participation of the holders of relevant capital instruments; creditor participation in accordance with Sections 89 and 90 of the Reorganization and Resolution Act is essential. The revised version of the circular also includes requirements for the technical and organizational equipment to ensure that the information can be provided within 24 hours of being requested by the resolution authority. Minimum requirements for the feasibility of a bail-in are also to be expanded in certain other areas. The main extensions relate to additional data points for the further development of the external bail-in implementation, the extension to all bail-in-capable liabilities (taking into account the principle of proportionality), and the inclusion of a catalog of frequently asked questions.
Related Links (in German)
Comment Due Date: December 16, 2020
Keywords: Europe, Germany, Banking, Bail-In, Resolution Planning, Resolution Framework, BaFin
Previous Article
IASB Begins First Phase of Post-Implementation Review of IFRS 9Related Articles
US Agencies Issue Regulatory Updates, FDIC Launches Tech Sprint
The Board of Governors of the Federal Reserve System (FED) published the final rule that amends Regulation I to reduce the quarterly reporting burden for member banks by automating the application process for adjusting their subscriptions to the Federal Reserve Bank capital stock, except in the context of mergers.
EBA Issues Guide on Bank Resolvability, Consults on Transferability
The European Banking Authority (EBA) published its assessment of risks through the quarterly Risk Dashboard and the results of the Autumn edition of the Risk Assessment Questionnaire (RAQ).
HKMA Extends Repayment for Trade Facilities, Consults on Crypto-Assets
The Hong Kong Monetary Authority (HKMA) published a circular, along with the reporting form and instructions, for self-assessment, by authorized institutions, of compliance with the Code of Banking Practice 2021.
FCA Registers Securitization Repositories; PRA Issues 2022 Priorities
The Financial Conduct Authority (FCA) decided to register European DataWarehouse Ltd and SecRep Limited as securitization repositories under the UK Securitization Regulation, with effect from January 17, 2022.
EC Regulation Sets Out Methods for Measuring K-Factors Under IFR
The European Commission (EC) published the Delegated Regulation 2022/25, which supplements the Investment Firms Regulation (IFR or Regulation 2019/2033) with respect to the regulatory technical standards specifying the methods for measuring the K-factors referred to in Article 15 of the IFR.
BIS Studies How Platform Models Impact Financial Stability & Inclusion
The Bank of International Settlements (BIS) published a paper that assesses the ways in which platform-based business models can affect financial inclusion, competition, financial stability and consumer protection.
ESAs Publish List of Financial Conglomerates for 2021
The European Supervisory Authorities (ESAs) published the list of identified financial conglomerates for 2021.
APRA Licenses Two More Banks, Reduces Committed Liquidity Facility
The Australian Prudential Regulation Authority (APRA) updated the list of authorized deposit-taking institutions, granting license to Barclays Bank PLC and Crédit Agricole Corporate and Investment Bank to operate as foreign authorized deposit-taking institutions under the Banking Act 1959.
EU Issues SII Corrigendum; EIOPA Assesses SII Reporting Exemptions
EU published, in the Official Journal of the European Union, a corrigendum to the Delegated Regulation 2015/35, which supplements Solvency II Directive (2009/138/EC).
EBA Opines on Impact of De-Risking and Associated AML/CFT Challenges
The European Banking Authority (EBA) published an Opinion on the scale and impact of de-risking in European Union and the steps that competent authorities should take to tackle unwarranted de-risking.
