SRB published a report on its annual conference, which was held in Brussels on October 15, 2018. This event provided panelists and speakers with the opportunity to reflect on the changes made in the decade since the global financial crisis. The title of this year’s event was "10 years after the crisis: are banks now resolvable?" In response, a general agreement emerged: while progress has been made, the journey of resolvability is a marathon, not a sprint—and it’s not over.
Recurring themes that emerged during the conference related to what is required to reach the finish line of resolvability. The need for a harmonized European Deposit Insurance Scheme as well as a backstop to the Single Resolution Fund was emphasized, alongside the necessity of overcoming inconsistencies in national insolvency proceedings and of addressing transparency. Additionally, more technical questions were raised this year as resolution planning by SRB continued:
- Are Management Information Systems organized and accessible enough to allow for efficient resolution?
- Can backstop funds be accessed quickly enough? and What about cyber-security risks?
The progress made in resolution thus far encouraged the consideration of such novel topics—considering that the quest for resolvability is always changing and that the concept of resolvability is evolving. Across all the topics discussed, there was certain consensus on one issue: the need to fight against complacency. A further push forward and continued accountability is needed if we want to be able to answer the question “are banks now resolvable?” with a resounding “yes.”
Keywords: Europe, EU, Banking, Resolvability, Bank Resolution, Single Resolution Fund, EDIS, Annual Conference, SRB
Previous ArticleBCBS Updates Framework for Pillar 3 Disclosure Requirements
EBA published an erratum for the technical package on phase 2 of the reporting framework 3.0.
MAS amended Notice 643A that addresses requirements for banks to prepare statements of exposures and credit facilities to related concerns or parties.
ECB has published, in the Official Journal of the European Union, the Guideline 2021/565 on the euro short-term rate (€STR) and this guideline amends the previous ECB Guideline 2019/1265.
EBA launched a consultation on the draft regulatory technical standards on the list of countries with an advanced economy for calculating the equity risk under the alternative standardized approach (FRTB-SA).
PRA is proposing, via CP7/21, the approach to implementing new requirements related to the specification of the nature, severity, and duration of an economic downturn in the internal ratings-based (IRB) approach to credit risk.
The UK government launched the Recovery Loan Scheme (RLS) as part of its continued COVID-19 support for UK businesses, as announced by HM Treasury on March 03, 2021.
FSB published a letter, from its Chair Randal K. Quarles, to the G20 Finance Ministers and Central Bank Governors, ahead of their virtual meeting on April 07, 2021.
OSFI issued a letter to the deposit-taking institutions issuing covered bonds and announced the unwinding of the temporary increase to the covered bond limit for deposit-taking institutions, effective immediately.
To support recovery from the COVID-19 crisis, EU has published two regulations to amend the securitization framework, as set out in the Securitization Regulation (2017/2402) and the Capital Requirements Regulation or CRR (575/2013).
HM Treasury announced that G7 Finance Ministers and Central Bank Governors met ahead of COP 26, the 2021 UN Climate Change Conference, and agreed on green agenda.