SRB is moving into the final phase of the "right to be heard" process regarding its preliminary decision on whether to compensate the shareholders and creditors affected by the resolution actions concerning Banco Popular Español S.A. SRB and the independent valuer, where relevant, reviewed and are finalizing their assessment of the 2,856 submissions from registered and verified affected parties. On this basis, SRB will carefully consider its final decision about whether compensation needs to be granted to the affected shareholders and creditors. SRB will announce its decision in the coming months.
SRB transferred all shares of Banco Popular Español S.A. to Banco Santander S.A on June 07, 2017, following the exercise of the write-down and conversion of capital instruments prior to the transfer. Due to Banco Popular's stressed liquidity situation, ECB decided, on June 06, 2017, that Banco Popular was failing or likely to fail and notified SRB accordingly. SRB and FROB, the Spanish national resolution authority, decided that the sale was in the public interest as it protects all depositors of Banco Popular and ensures financial stability. The resolution scheme entered into force on the same day, following the EC endorsement.
On August 06, 2018, SRB published its preparatory act, in which it took a preliminary decision that it is not required to compensate affected shareholders and creditors of Banco Popular based on the conclusions of the report of the independent valuer regarding the valuation of difference in treatment. At that time, SRB also opened the registration for the right to be heard process. This allowed affected shareholders and creditors to provide reasoning where they do not agree with the preliminary decision and to explain why they consider alternative approaches or assumptions for the normal insolvency proceedings should have been adopted and, if they had been, how in their view these would have affected the final outcome. The submissions received by SRB covered both the way SRB approached the valuation for difference in treatment and the Valuation 3 report.
Keywords: Europe, EU, Spain, Banking, Right to be Heard, Resolution Framework, National Resolution Authority, FROB, Banco Popular, SRB
BoE published a statistical notice (Notice 2020/9) explaining the approach for treatment of payment holidays on the profit and loss return or Form PL.
BoE updated the known issues document for the statistical reporting Forms AS and FV.
FED announced individual capital requirements for 34 large banks and these requirements go into effect on October 01, 2020.
SRB published a set of documents to give operational guidance to banks on implementation of the bail-in tool.
BIS published an update on the G20 TechSprint Initiative, which was launched in April 2020 and aims to highlight the potential for technologies to resolve regulatory compliance (regtech) and supervisory (suptech) challenges.
OSFI published a letter that provides an update on the milestones for the implementation of the IFRS 17 standard on insurance contracts.
EBA updated the report on the implementation of selected COVID-19 policies.
The Financial Stability Institute (FSI) of BIS published a brief note that examines the supervisory challenges associated with certain temporary regulatory relief measures introduced by BCBS and prudential authorities in response to the COVID-19 pandemic.
BCBS is consulting on the principles for operational resilience and the revisions to the principles for sound management of operational risk for banks.
BoE updated the reporting template for Form ER as well as the Form ER definitions, which contain guidance on the methodology to be used in calculating annualized interest rates.