BaFin Sets Out Minimum Requirements for Resolution Assessments
BaFin published a circular that sets out the minimum requirements for institutions to maintain appropriate systems and processes to provide essential information for effective and efficient resolution on an ad hoc basis—within 24 hours of a request from the resolution authority. Information that is required for assessment within the meaning of Article 20(1) of the Single Resolution Mechanism Regulation (SRMR), Section 69(16) of the SRMR, or Section 146(1) of the Restructuring and Resolution Act (SAG) is considered to be "essential."
The circular is addressed to all institutions within the meaning of Section 2(1) of SAG and companies within the meaning of Section 1 Number 3 of SAG in Germany. Institutions under the responsibility of SRB are outside the scope of this circular. The circular stipulates that, to ensure a proportional procedure, BaFin will inform the institutions within the scope of the resolution planning whether and at what point in time institutions are required to comply with the requirements contained in the circular. As long as an institution has not received relevant information from BaFin, it can assume that all information within the meaning of this circular is initially dispensable and that no related processes and systems need to be maintained and no information needs to be transmitted.
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Keywords: Europe, Germany, Banking, Resolution Framework, SRMR, Resolution Planning, BaFin
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