Featured Product

    SRB Chair Speaks About Work Priorities for 2019

    October 15, 2018

    The EC Vice President Valdis Dombrovskis and the SRB Chair Elke König spoke at the 2018 Single Resolution Board Conference in Brussels. EC Vice President focused on the status and the future of the bank crisis management framework in EU and discussed three of the most important lessons for the financial sector during the global financial crisis. Additionally, SRB Chair, during the Welcome Speech, outlined the work priorities of SRB in the coming year.

    EC Vice President took stock of where Europe stands on the following lessons learned from the crisis:

    • The first lesson is about being well-prepared for major bank failures, no matter how improbable they may seem.
    • The second is about setting aside in advance the financial means necessary to face a systemic crisis.  
    • The third is to beware of complacency or overconfidence—even in a growing economy.

    SRB Chair emphasized that resolution planning is a long-term project and "it is clear that we are in a better place today than we were five years ago, but there is no clear-cut answer" on whether banks are resolvable now. In 2019, SRB will carry on the work to strengthen resolution plans and all SRB banking groups will be covered by a resolution plan in 2019. SRB will increasingly focus on tailoring resolution strategies to a bank’s structure and business model and identifying and addressing impediments to resolvability. A key tool to achieve resolvability is, and will continue to be, Minimum Requirement for Own Funds and Eligible Liabilities (MREL). 2019 will see sizable progress in the definition of MREL requirements, including the location of MREL. This year, SRB will continue to determine MREL targets at the consolidated level and will set individual targets. SRB will also continue the work on identifying impediments and developing solutions together with the industry and with the national resolution authorities.

    Ms. König informed that the Single Resolution Fund, or SRF, will continue to grow (to just short of 33 billion) in 2019 and the amounts will be invested to ensure value protection and high liquidity. The SRB is also confident and hopeful that progress can be made on the important third pillar of a harmonized deposit guarantee scheme (EDIS) to complete the Banking Union. The harmonization of insolvency regimes remains essential, as the Single Resolution Mechanism framework for resolution is faced with 19 or more different insolvency procedures in the Banking Union. She added that Brexit will see all bond issuances under UK law move to third-country issuances. Only if there are adequate contractual clauses will these instruments be MREL-eligible in the future. Moreover, the post-resolution work in the Banco Popular case is ongoing. In August, SRB had launched the first phase of the "right to be hear"’ procedure. Phase 2—in which eligible parties can provide their comments—will open on November 6 and will run for a period of three weeks. Further information on the second phase will be available on the SRB website.


    Related Links

    Keywords: Europe, EU, Banking, Resolution Planning, MREL, EDIS, SRM, EC, SRB

    Related Articles
    News

    OCC Revises Minimum Threshold for Banks to Conduct Stress Tests

    OCC issued the final rule that amends its company-run stress testing requirements under the 12 CFR 46 in Code of Federal Regulations.

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Update Management Interlock Rules Under DIMIA

    US Agencies (FDIC, FED, and OCC) issued a final rule that increases the thresholds in the major assets prohibition for management interlocks for purposes of the Depository Institution Management Interlocks Act (DIMIA).

    October 10, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Rules to Closely Match Bank Risk Profiles

    US Agencies (OCC, FED, and FDIC) finalized rules that tailor the regulations for domestic and foreign banks to more closely match their risk profiles.

    October 10, 2019 WebPage Regulatory News
    News

    CPMI-IOSCO and FSB on Governance Arrangements for OTC Derivatives

    CPMI and IOSCO published a report that identifies key criteria, functions, and bodies for the governance arrangements.

    October 09, 2019 WebPage Regulatory News
    News

    EIOPA Launches Field Test on Templates Under 2020 Solvency II Review

    EIOPA, as part of the 2020 Solvency II reporting and disclosure review, launched a field test on the revised and newly proposed reporting templates.

    October 09, 2019 WebPage Regulatory News
    News

    US Agencies Adopt Rule on Appraisals for Real Estate Transactions

    US Agencies (FDIC, FED, and OCC) adopted the final rule to amend regulations requiring appraisals of real estate for certain transactions

    October 08, 2019 WebPage Regulatory News
    News

    US Agencies Finalize Amendments to Simplify Volcker Rule

    US Agencies (CFTC, FDIC, FED, OCC, and SEC) finalized amendments to the regulations implementing section 13 of the Bank Holding Company Act, also known as the Volcker Rule.

    October 08, 2019 WebPage Regulatory News
    News

    EC Report Explores Application and Challenges of Blockchain Technology

    The Joint Research Center of EC published a report exploring the challenges and impact of distributed ledger technologies.

    October 08, 2019 WebPage Regulatory News
    News

    BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland

    BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland.

    October 08, 2019 WebPage Regulatory News
    News

    ECB Issues Results of Sensitivity Analysis of Liquidity Risk for Banks

    ECB published results of 2019 stress test on sensitivity analysis of liquidity risk.

    October 07, 2019 WebPage Regulatory News
    RESULTS 1 - 10 OF 3958