SRB published a paper that outlines its approach to the public interest assessment under the resolution framework in EU. The public interest assessment examines whether the resolution of a particular bank that is failing or likely to fail would be necessary, for example, to ensure one or more of objectives of resolution. The objectives of a resolution are to maintain financial stability, protect covered depositors, and safeguard public funds by minimizing reliance on extraordinary public financial support. If resolution is not deemed necessary, resolution actions would not be taken and national insolvency procedures would apply.
The published document offers clarity about the factors that SRB takes into account when conducting a public interest assessment and explains how SRB applies the criteria set out in EU law. When SRB considers whether to plan for or to take resolution action—both at the resolution planning stage and after a failing or likely to fail declaration—it performs a public interest assessment. The conclusion of public interest assessment drives the decision on whether resolution is to be considered as the preferred option in resolution planning. The approach was developed by SRB and national resolution authorities, in consultation with ECB and EBA, to ensure a common understanding across the Banking Union. It is one of the key policies underpinning the work of SRB.
Keywords: Europe, EU, Banking, Resolution Framework, Public Interest Assessment, Resolution Action, Banking Union, ECB, EBA, SRB
Previous ArticleSEC Proposes to Amend Customer Margin Rules for Security Futures
EBA published phase 2 of the technical package on the reporting framework 2.10, providing the technical tools and specifications for implementation of EBA reporting requirements.
FASB issued a proposed Accounting Standards Update that would grant insurance companies, adversely affected by the COVID-19 pandemic, an additional year to implement the Accounting Standards Update No. 2018-12 on targeted improvements to accounting for long-duration insurance contracts, or LDTI (Topic 944).
APRA updated the regulatory approach for loans subject to repayment deferrals amid the COVID-19 crisis.
BCBS and FSB published a report on supervisory issues associated with benchmark transition.
IAIS published a report on supervisory issues associated with benchmark transition from an insurance perspective.
ESMA updated the reporting manual on the European Single Electronic Format (ESEF).
EBA published a statement on resolution planning in light of the COVID-19 pandemic.
BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework
ECB published a guideline (2020/97), in the Official Journal of European Union, on the definition of materiality threshold for credit obligations past due for less significant institutions.
FED temporarily revised the capital assessments and stress testing reports (FR Y-14A/Q/M) to implement the changes in response to the COVID-19 pandemic.