SRB Approach to Public Interest Assessment Under Resolution Framework
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.
Related Links
Keywords: Europe, EU, Banking, Resolution Framework, Public Interest Assessment, Resolution Action, Banking Union, ECB, EBA, SRB
Featured Experts
María Cañamero
Skilled market researcher; growth strategist; successful go-to-market campaign developer
Dieter Van der Stock
IFRS subject matter expert; LDTI subject matter expert; accounting authority; risk management specialist
Previous Article
ESMA Publishes Regulatory Work Program for 2019Related Articles
ESAs Issue Multiple Regulatory Updates for Financial Sector Entities
The three European Supervisory Authorities (ESAs) issued a letter to inform about delay in the Sustainable Finance Disclosure Regulation (SFDR) mandate, along with a Call for Evidence on greenwashing practices.
ISSB Makes Announcements at COP27; IASB to Propose IFRS 9 Amendments
The International Sustainability Standards Board (ISSB) of the IFRS Foundations made several announcements at COP27 and with respect to its work on the sustainability standards.
IOSCO Prioritizes Green Disclosures, Greenwashing, and Carbon Markets
The International Organization for Securities Commissions (IOSCO), at COP27, outlined the regulatory priorities for sustainability disclosures, mitigation of greenwashing, and promotion of integrity in carbon markets.
EBA Finalizes Methodology for Stress Tests, Issues Other Updates
The European Banking Authority (EBA) issued a statement in the context of COP27, clarified the operationalization of intermediate EU parent undertakings (IPUs) of third-country groups
OSFI Sets Out Work Priorities and Reporting Updates for Banks
The Office of the Superintendent of Financial Institutions (OSFI) published an annual report on its activities, a report on forward-looking work.
APRA Finalizes Changes to Capital Framework, Issues Other Updates
The Australian Prudential Regulation Authority (APRA) finalized amendments to the capital framework, announced a review of the prudential framework for groups.
BIS Hub and Central Banks Conduct CBDC and DeFI Pilots
The Bank for International Settlements (BIS) Innovation Hubs and several central banks are working together on various central bank digital currency (CBDC) pilots.
ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations
The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.
ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector
Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)
EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation
The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)
