Featured Product

    SRB Outlines Upcoming Work Priorities, Issues MREL Dashboard

    February 01, 2022

    The Single Resolution Board (SRB) published the dashboard on minimum requirement for own funds and eligible liabilities (MREL), for the third quarter of 2021. The dashboard shows that shortfall against the 2024 final target reduced in the reporting period, with most banks either closing or reducing their shortfalls against the 2022 intermediate target. In a separate development, the SRB Chair discusses the key priorities for 2022, noting that SRB will continue to work with European partners on completing the Banking Union, including finding an institutional solution for liquidity in resolution, progressing on a common deposit guarantee system, and working on a European framework for bank insolvency.

    The three key priorities or resolutions for 2022 involve:

    • MREL build-up—Banks have been able to raise capital and debt instruments and build up further the necessary MREL buffers at record low interest rates. SRB will encourage all banks to continue to build up their MREL and fulfill requirements of the January 2022 intermediate MREL target and the 2024 final MREL target.
    • Separability and reorganization plans—For mid-size banks, SRB is prioritizing the work on transfer tools, separability, and adjustments of MREL for such transfer tools. During 2021, SRB issued a guidance note on separability and plans to continue work on this area in 2022.
    • Management information systems—SRB will prioritize the reorganization efforts of  banks to become more efficient and customer-focused. Information technology and cyber risk management, will be a key priority, for banks to benefit from resolution planning and crisis preparedness.

    In addition to these, a more transparent assessment of resolvability has long been a key priority for  SRB. SRB has defined a heatmap as a tool to monitor, benchmark, and communicate the progress of banks toward full resolvability. SRB is evaluating the first cross-cutting assessment based on the progress made by banks so far in the form of such heatmap, and plans to publish an aggregated heatmap by the end of 2022.

     

    Related Links

     

    Keywords: Europe, EU, Banking, MREL, MREL Dashboard, Work Priorities, Basel, Regulatory Capital, Resolution Framework, Banking Union, Deposit Guarantee Mechanism, SRB

    Featured Experts
    Related Articles
    News

    EBA Launches Stress Tests for Banks, Issues Other Updates

    The European Banking Authority (EBA) launched the 2023 European Union (EU)-wide stress test, published annual reports on minimum requirement for own funds and eligible liabilities (MREL) and high earners with data as of December 2021.

    January 31, 2023 WebPage Regulatory News
    News

    EBA Proposes Standards for IRRBB Reporting Under Basel Framework

    The European Banking Authority (EBA) proposed implementing technical standards on the interest rate risk in the banking book (IRRBB) reporting requirements, with the comment period ending on May 02, 2023.

    January 31, 2023 WebPage Regulatory News
    News

    FED Issues Further Details on Pilot Climate Scenario Analysis Exercise

    The U.S. Federal Reserve Board (FED) set out details of the pilot climate scenario analysis exercise to be conducted among the six largest U.S. bank holding companies.

    January 17, 2023 WebPage Regulatory News
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8700