Featured Product

    BoE and PRA Consult on Resolvability Assessment Framework

    December 18, 2018

    BoE and PRA are consulting on the resolvability assessment framework (RAF) package. The two consultation papers that make up the package are an important step in BoE's commitment to Parliament that major UK banks will be fully resolvable by 2022. The consultations close on April 05, 2019. Also published was an "Introduction to the Resolvability Assessment Framework," which contains an overview of the RAF, along with a foreword from Jon Cunliffe, Deputy Governor for Financial Stability, and Sam Woods, Deputy Governor for Prudential Regulation, and CEO of PRA.

    The package comprises three main components:

    • A BoE consultation paper, which proposes how the BoE, as the resolution authority, intends to assess individual banks' resolvability and the three outcomes it deems necessary to support a successful resolution. These three outcomes are having adequate financial resources; being able to continue to do business through resolution and restructuring; and being able to coordinate and communicate within BoE, with authorities and markets so that resolution and restructuring are orderly.  The BoE consultation paper would apply to UK firms whose resolution strategy is a Bank-led bail-in or partial transfer and to material UK subsidiaries of international firms for the purposes of setting internal minimum requirement for own funds and eligible liabilities (MREL) in the UK.
    • A PRA consultation paper (CP31/18), which contains proposed requirements for banks to assess their preparations for resolution, identifying any risks to implementation and their plans to address these risks. Banks will be required to submit their assessments of their preparation for resolution to PRA by September 2020 and to publicly disclose a summary of that assessment by June 2021. This would apply to the largest UK banks with at least GBP 50 billion in retail deposits on an individual or consolidated basis. 
    • Announcement that BoE will publish a statement about its assessment of resolvability of each firm, highlighting any shortcomings where it believes there is more work to do. Firms’ summaries and Bank statements are planned to be published at the same time.


    Related Links

    Comment Due Date: April 05, 2019

    Keywords: Europe, UK, Banking, Resolution Framework, Resolution Planning, Internal MREL, PRA, BoE

    Related Articles
    News

    IAIS and SIF Publish Paper on Implementation of TCFD Recommendations

    IAIS and Sustainable Insurance Forum (SIF) published an issues paper on implementation of the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

    February 27, 2020 WebPage Regulatory News
    News

    BCBS Meets to Advance Supervisory Initiatives and Basel Implementation

    BCBS met in Basel on February 26-27, 2020 to review risks impacting the banking system, advance a range of supervisory initiatives, and promote the implementation of Basel III.

    February 27, 2020 WebPage Regulatory News
    News

    EBA Publishes List of Institutions for Benchmarking Exercise in 2020

    EBA updated the list of institutions that have a reporting obligation for the EU supervisory benchmarking exercise in 2020.

    February 27, 2020 WebPage Regulatory News
    News

    BoE Launches Private Finance Agenda for Transition to Net Zero Economy

    The Governor of BoE, Mark Carney, launched the "COP26 Private Finance Agenda" to help private finance support the whole economy transition to net zero.

    February 27, 2020 WebPage Regulatory News
    News

    OSFI Consults on the 2020 LICAT Guideline for Life Insurers

    OSFI is consulting on the 2020 Life Insurance Capital Adequacy Test (LICAT) guideline for federally regulated life insurance companies and fraternal benefit societies.

    February 26, 2020 WebPage Regulatory News
    News

    BoE Publishes Notice on Collateral Referencing LIBOR for Use in SMF

    BoE published a market notice that forms part of the Documentation for the operations of BoE under the Sterling Monetary Framework (SMF).

    February 26, 2020 WebPage Regulatory News
    News

    US Agencies Correct Error in Capital Simplification Rule for Banks

    US Agencies (FDIC, FED, and OCC) published a notice in the Federal Register to correct an erroneous amendatory instruction in the final regulatory capital rule that was published in November 2019.

    February 26, 2020 WebPage Regulatory News
    News

    BaFin Publishes Submission Deadlines Under Solvency II

    BaFin published quarterly and annual submission deadlines on the Solvency II reporting page on its website.

    February 25, 2020 WebPage Regulatory News
    News

    RBNZ to Address Cyber Risk Through Risk Management Guidance

    RBNZ announced that it is strengthening its efforts to enhance resilience of the financial system from cyber threats, including developing risk management guidance and promoting information-sharing in collaboration with industry and other public organizations.

    February 25, 2020 WebPage Regulatory News
    News

    ISDA Consults Again on Implementing Pre-Cessation Derivative Fallbacks

    ISDA launched a new consultation on the implementation of pre-cessation fallbacks for derivatives.

    February 25, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4745