SRB Outlines Work Priorities and Progress on Recent Resolution Cases
The Single Resolution Board (SRB) published a bi-annual reporting note to the Eurogroup and signed new cooperation arrangements with the authorities of Bosnia and Herzegovina.
The bi-annual reporting note contains updates to Eurogroup on the recent resolution cases, outlines the SRB progress and priorities in 2022, and provides an update on the Single Resolution Fund (SRF), including the common backstop and the SRB consultation process on ex-ante contributions to the SRF. Below are key highlights of these developments:
- Recent Resolution cases—SRB adopted the decisions to resolve the Slovenian and Croatian subsidiaries of Sberbank to protect financial stability and avoid disruption to the Croatian and Slovenian economies, whereas SRB didn’t take any resolution action for the Austrian parent of Sberbank, as it was not considered to provide critical functions to the economy. The SRB’s decisions achieved the resolution objectives, in particular the objective of safeguarding financial stability, to protect public funds and depositors, and ensure the continuity of critical functions.
- SRB priorities for 2022—The priorities for 2022 include resolution planning, resolvability assessment, transfer tools, separability and adjustments of minimum requirement of own funds and eligible liabilities (MREL) for such transfer tools, operationalizing the Single Point of Entry, and further enhancing MREL policy and final MREL targets.
- SRF and Common Backstop—SRB remains committed to the introduction of the common backstop to the SRF in early 2022 and expects all national procedures to be finalized to introduce the common backstop as soon as possible. SRB also launched a consultation on 2022 ex-ante contributions to the SRF, which gives banks and credit institutions the opportunity to view the SRB’s preliminary decision on their calculation prior to its adoption and to comment on aspects pertinent to the calculation exercise.
In a separate development, SRB signed new cooperation arrangements with two authorities of Bosnia and Herzegovina, including both the Banking Agency of Republika Srpska (BARS) and the Banking Agency of the Federation of Bosnia and Herzegovina (FBA). The arrangement was made on the exchange of information and cooperation in connection with the resolution planning and the implementation of such planning for entities with cross-border operations.
- News Release on Bi-Annual Reporting Note
- Bi-Annual Reporting Note (PDF)
- New Cooperation Arrangements
- SRB-BARS Bilateral Arrangement (PDF)
- SRB-FBA Bilateral Arrangement (PDF)
Keywords: Europe, EU, Banking, Basel, Reporting, Regulatory Capital, Single Resolution Fund, SRF, MREL, Resolvability Assessment, Cross-Border Activities, Cooperation Arrangement, BARS, FBA, Resolution Framework, Common Backstop, SRB
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Applies proficiency and knowledge to regulatory capital and reporting analysis and coordinates business and product strategies in the banking technology area
Previous ArticleOSFI Revises Guideline on IFRS 9
FINMA Approves Merger of Credit Suisse and UBS
The Swiss Financial Market Supervisory Authority (FINMA) has approved the takeover of Credit Suisse by UBS.
BOE Sets Out Its Thinking on Regulatory Capital and Climate Risks
The Bank of England (BOE) published a working paper that aims to understand the climate-related disclosures of UK financial institutions.
OSFI Finalizes on Climate Risk Guideline, Issues Other Updates
The Office of the Superintendent of Financial Institutions (OSFI) is seeking comments, until May 31, 2023, on the draft guideline on culture and behavior risk, with final guideline expected by the end of 2023.
APRA Assesses Macro-Prudential Policy Settings, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) published an information paper that assesses its macro-prudential policy settings aimed at promoting stability at a systemic level.
BIS Paper Examines Impact of Greenhouse Gas Emissions on Lending
BIS issued a paper that investigates the effect of the greenhouse gas, or GHG, emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018.
HMT Mulls Alignment of Ring-Fencing and Resolution Regimes for Banks
The HM Treasury (HMT) is seeking evidence, until May 07, 2023, on practicalities of aligning the ring-fencing and the banking resolution regimes for banks.
MFSA Sets Out Supervisory Priorities, Issues Reporting Updates
The Malta Financial Services Authority (MFSA) outlined its supervisory priorities for 2023
German Regulators Issue Multiple Reporting Updates for Banks
Deutsche Bundesbank published the nationally deactivated validation rules for the German Commercial Code (HGB) users on the taxonomy 3.2, which became valid from December 31, 2022
BCBS Report Examines Impact of Basel III Framework for Banks
The Basel Committee on Banking Supervision (BCBS) published results of the Basel III monitoring exercise based on the June 30, 2022 data.
PRA Consults on Prudential Rules for "Simpler-Regime" Firms
Among the recent regulatory updates from UK authorities, a key development is the first-phase consultation, from the Prudential Regulation Authority (PRA), on simplifications to the prudential framework that would apply to the simpler-regime firms.