Featured Product

    SRB Holds Annual Conference, Reflects on Turning Policy into Action

    December 10, 2019

    SRB published a report on its fourth annual conference that was held on October 10, 2019 in Brussels. This year, the discussions focused on the implementation of bank resolution policy. The discussions identified several relevant issues, including completing the Banking Union, the lack of a functioning Capital Markets Union, the need for a more robust framework around liquidity in resolution, and the newfound information technology issues that impede the efficiency of resolution and operational continuity.

    Elke König, the SRB Chair, highlighted that an updated Minimum Requirement for own funds and Eligible Liabilities (MREL) policy is to be released in early 2020. In terms of the future work areas, the SRB Chair mentioned the:

    • Need for a backstop in the Single Resolution Fund or SRF
    • Lingering issue of liquidity in resolution
    • Harmonization of insolvency regimes
    • Need for a functioning Capital Markets Union

    With these needs clearly defined, the conference set an ambitious “to do” list of what should be accomplished now if resolvability is to be successful in future. In comparing the EU to other jurisdictions, the lack of a "single European market" was repeatedly flagged as a cause for concern. With investors still viewing banks on national terms (that is, German versus Italian, instead of European), EU is not an appealing market to investors. While it is for firms to make themselves resolvable, the resolution authorities need to be clear on what this means. Also identified was an overall need for greater clarity and, with it, increased transparency.

    Furthermore, in his speech, Dietrich Domanski, the Secretary-General of FSB, focused on elements needed to maintain operational continuity when turning resolution policy into action. In this context, he mentioned the gaps identified in the eighth FSB report on implementation of resolution reforms in the areas of achieving a balance between prepositioned and nonprepositioned total loss-absorbing capacity (TLAC) resources, successful execution of a TLAC bail-in transaction, and liquidity in resolution. According to José Manuel Campa, the EBA Chair, progress has been slow and “... work still needs to be done both from the banks’ point of view and the authorities’ point of view. Only a few authorities have published guidelines on operational continuity.” EBA, he said, is working with supervisory authorities to help them create clear and common guidelines for banks on what is expected—for instance in terms of concretely identifying and mapping critical functions—across resolution authorities.

     

    Related Links

    Keywords: Europe, EU, Banking, Banking Union, SRF Backstop, Single Resolution Board, Annual Conference, Resolution Framework, MREL, Bail-In, Liquidity in Resolution, SRB

    Featured Experts
    Related Articles
    News

    APRA Finalizes Guidance on Management of Climate Change Risks

    The Australian Prudential Regulation Authority (APRA) released the final Prudential Practice Guide on management of climate change financial risks (CPG 229) for banks, insurers, and superannuation trustees.

    November 26, 2021 WebPage Regulatory News
    News

    European Council Adopts Position on Digital Finance Package Proposals

    The European Council adopted its position on two proposals that are part of the digital finance package adopted by the European Commission in September 2020, with one of the proposals involving the regulation on markets in crypto-assets (MiCA) and the other involving the Digital Operational Resilience Act (DORA).

    November 25, 2021 WebPage Regulatory News
    News

    PRA Proposes Rulebook Changes; BoE Extends BEEDS Testing Window

    The Prudential Regulation Authority (PRA) is proposing, via the consultation paper CP21/21, to apply group provisions in the Operational Resilience Part of the PRA Rulebook (relevant for the Capital Requirements Regulation or CRR firms) to holding companies.

    November 25, 2021 WebPage Regulatory News
    News

    EC Proposes New Measures Under Capital Markets Union Package

    The European Commission (EC) has adopted a package of measures related to the Capital Markets Union.

    November 25, 2021 WebPage Regulatory News
    News

    EBA Publishes Standards to Calculate Risk-Weights of CIUs Under CRR

    The European Banking Authority (EBA) published the final report on draft regulatory technical standards for the calculation of risk-weighted exposure amounts of collective investment undertakings or CIUs, in line with the Capital Requirements Regulation (CRR).

    November 24, 2021 WebPage Regulatory News
    News

    FED Outlines Lending Conditions and Supervisory Activities in H1 2021

    The Board of Governors of the Federal Reserve System (FED) published a report that summarizes banking conditions in the United States, along with the supervisory and regulatory activities of FED.

    November 24, 2021 WebPage Regulatory News
    News

    APRA Expects Boards to Strengthen Ability to Oversee Cyber Resilience

    The Australian Prudential Regulation Authority (APRA) recently completed two pilot initiatives in its 2020-2024 Cyber Security Strategy, which was published in November 2020.

    November 23, 2021 WebPage Regulatory News
    News

    FSB Updates List of Global Systemically Important Banks

    The Basel Committee on Banking Supervision (BCBS) published further information related to its 2021 assessment of global systemically important banks (G-SIBs), with additional details to help understand the scoring methodology.

    November 23, 2021 WebPage Regulatory News
    News

    FASB Proposes Improvements to Credit Losses Standard

    The Financial Accounting Standards Board (FASB) is consulting on an Accounting Standards Update and the associated taxonomy improvements for requirements on troubled debt restructurings and vintage disclosures under the credit losses standard (for financial instruments) topic 326.

    November 23, 2021 WebPage Regulatory News
    News

    US Agencies Issue Statement on Crypto-Asset Policy Initiatives

    US Agencies issued a statement that summarizes the work undertaken during the interagency policy sprints focused on crypto-assets and provides a roadmap of future work related to crypto-assets.

    November 23, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 7733