BNM Consults on Recovery and Resolution Planning Framework
BNM issued exposure draft on the recovery and resolution planning framework for financial institutions. To facilitate a systematic approach for financial institutions to conduct assessments or provide material information within the recovery planning process, the policy document is accompanied by a set of reporting templates listed in Appendix 1. As per the proposal, a financial institution shall submit its first recovery plan within 12 months from the date it receives a request from BNM. The comment period for this draft ends on March 31, 2020.
The recovery and resolution planning framework seeks to put in place an effective and efficient process to enhance supervisability, recoverability, and resolvability of financial institutions. The framework will incorporate the essential elements of the FSB's "Key Attributes of Effective Resolution Regime for Financial Institutions" into the domestic regulatory, supervisory, and resolution regimes. Under the proposed framework, each financial institution will be required to identify and plan for the execution of a suite of recovery options to restore its long-term viability under a range of idiosyncratic and system-wide stress events. For the purpose of this draft, a financial institution refers to a banking institution and financial holding company, wherein a banking institution refers to a licensed bank, a licensed Islamic bank, and/or a licensed investment bank. The requirements set out in this proposed policy document shall apply to financial institutions on a consolidated basis. For the purpose of this proposed policy document, this shall include the global operations of the financial institution and all its financial and non-financial subsidiaries, including insurance and/or takaful subsidiaries.
Related Links
Keywords: Asia Pacific, Malaysia, Banking, Recovery Planning, Recovery and Resolution Framework, Reporting, BNM
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Pierre-Etienne Chabanel
Brings expertise in technology and software solutions around banking regulation, whether deployed on-premises or in the cloud.
Nicolas Degruson
Works with financial institutions, regulatory experts, business analysts, product managers, and software engineers to drive regulatory solutions across the globe.
Related Articles
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
PRA Statement on Application of Matching Adjustment Amid Crisis
PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.
EBA Provides Clarity on Implementation of Certain COVID-19 Policies
EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.
EC Consults on Revision of Network and Information Systems Directive
EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.
PRA Statement on LIBOR Transition and PRA Resolution-Related Rules
PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.
PRA Issues Updates to Pillar 2A Capital Framework in UK
PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.
BCBS Report Examines Progress on Adoption of Basel III Framework
BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.
FCA Proposes Guidance to Further Support Consumer Credit Customers
FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.
ACPR Publishes Draft of Taxonomy RAN 1.4.0 for Solvency II Reporting
ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.
BCBS Amends Guidelines on Sound Management of AML/CFT Risks
BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).
