SRB published its first multi-annual programming document, including its Work Program for 2018. SRB sets out an ambitious roadmap for improving the resolvability of the banks under its remit over the next three years.
Key objectives include completion and refinements of resolution plans and definition of Minimum Requirement for own funds and Eligible Liabilities (MREL) for all major banking groups in the SRB remit, reinforced crisis preparedness, and further operationalization of the Single Resolution Fund (SRF). To achieve its objectives, SRB has defined the following five strategic areas of operation in which progress is to be accomplished:
- Strengthening resolvability for SRB entities and less significant institutions
- Fostering a robust resolution framework
- Preparing and carrying out effective crisis management
- Operationalizing the SRF
- Establishing a lean and efficient organization
With respect to the resolution plans, the objective is to complete resolution plans for all major banking groups by 2020, including binding minimum requirements for own funds and eligible liabilities (MREL) targets on all levels of a group. In 2017, SRB has started to develop binding targets for major banking groups. SRB intends to define MREL requirements for these groups in 2018, with an increased focus on the quality and the internal location of MREL, in particular ensuring that there are sufficient subordinated instruments to implement banks’ preferred resolution strategies. Beyond MREL, resolution plans will benefit from the growing experience and ongoing policy work in many domains, for example, on impediments to resolution. SRB will also reinforce the crisis preparedness, aiming to implement efficient workflows under multiple crisis scenarios. The SRB Chair Elke König said, "We are clearly committed to the SRB’s mission: ensuring an orderly resolution of failing banks with minimum impact on the real economy, the financial system, and the public finances of the participating member states and beyond."
Keywords: Europe, EU, Banking, Resolution Framework, MREL, LSI, Resolution Planning, Work Program, SRB
Previous ArticleFSI Paper on Supplemental Basel III Liquidity Monitoring Tools
EBA issued a revised list of validation rules with respect to the implementing technical standards on supervisory reporting.
EBA published its response to the call for advice of EC on ways to strengthen the EU legal framework on anti-money laundering and countering the financing of terrorism (AML/CFT).
NGFS published a paper on the overview of environmental risk analysis by financial institutions and an occasional paper on the case studies on environmental risk analysis methodologies.
MAS published the guidelines on individual accountability and conduct at financial institutions.
APRA published final versions of the prudential standard APS 220 on credit quality and the reporting standard ARS 923.2 on repayment deferrals.
SRB published two articles, with one article discussing the framework in place to safeguard financial stability amid crisis and the other article outlining the path to a harmonized and predictable liquidation regime.
FSB hosted a virtual workshop as part of the consultation process for its evaluation of the too-big-to-fail reforms.
ECB updated the list of supervised entities in EU, with the number of significant supervised entities being 115.
OSFI published the key findings of a study on third-party risk management.
FSB is extending the implementation timeline, by one year, for the minimum haircut standards for non-centrally cleared securities financing transactions or SFTs.