Featured Product

    EBA Consults on Certain Standards and Guidelines Under CRR and BRRD

    June 08, 2022

    The European Banking Authority (EBA) proposed guidelines, for the resolution authorities, on the publication of the write-down and conversion and bail-in exchange mechanic, with the comment period ending on September 07, 2022. EBA is also seeking comments, until September 08, 2022, on the draft regulatory technical standards on the identification of a group of connected clients (GCC), under the Capital Requirements Regulation (CRR).

    The guidelines for resolution authorities, as expected under the Bank Resolution and Recovery Directive (BRRD/2014/59/EU2), provide a clear framework for resolution authorities to publish their approach to using the bail-in tool; they are intended to ensure that a minimum level of harmonized information is made public on the mechanics underpinning the execution of the bail-in tool. The aim of the guidelines is to increase predictability and enable resolution authorities to set-out their favored approach on exchange mechanic specifying whether they intend to make use of interim instruments or not, an indicative timeline for the application of the exchange mechanic, and how potential valuation adjustments would take place. Resolution authorities that have not yet published their bail-in mechanic are expected to start publishing a high-level document from January 2024 setting out the key aspects of their preferred approach. The authorities should also indicate whether they intend to make use of interim instruments. Resolution authorities that have already published such information are expected to check if their publication complies with the EBA draft Guidelines on improving resolvability for institutions and resolution authorities. Post this consultation, the final report is expected to be published by the end of 2022. International standards on resolution expect home authorities to publish their approach to the exchange mechanic—that is, the operational process allowing the write-down of capital instruments or bail-in-able liabilities or conversion into new shares. 

    The proposed regulatory standards on the identification of the group of connected clients revise and partially replace the EBA guidelines (EBA/GL/2017/15) on connected clients under Article 4 of the CRR Regulation (575/2013). The objective of the definition of a group of connected clients in CRR is to identify two or more natural or legal persons who are so closely linked by idiosyncratic risk factors, that it is prudent to treat them as a single risk. The guidelines are intended to set out clear circumstances where interconnections by means of a control and/or an economic dependency relationship lead to a single risk and thus a grouping requirement. The draft standards also set out rebuttable provisions for the assessment of situations where control and economic dependencies coexist and thus one overall group of connected clients, as opposed to two or more separate groups of connected clients, needs to be formed. Following the submission to the European Commission, the final draft regulatory technical standards will be subject to scrutiny by the European Parliament and the Council before being published in the Official Journal of the European Union

     

    Related Links


    Keywords: Europe, EU, Banking, Resolution Framework, Bank Resolvability, Transferability in Resolution, BRRD, CRR, Basel, Connected Clients, Large Exposures, Regulatory Technical Standards, EBA

    Featured Experts
    Related Articles
    News

    EBA Publishes Final Regulatory Standards on STS Securitizations

    The European Banking Authority (EBA) published the final draft regulatory technical standards specifying and, where relevant, calibrating the minimum performance-related triggers for simple.

    September 20, 2022 WebPage Regulatory News
    News

    ECB Further Reviews Costs and Benefits Associated with IReF

    The European Central Bank (ECB) is undertaking the integrated reporting framework (IReF) project to integrate statistical requirements for banks into a standardized reporting framework that would be applicable across the euro area and adopted by authorities in other EU member states.

    September 15, 2022 WebPage Regulatory News
    News

    EBA Publishes Funding Plans Report, Receives EMAS Certification

    The European Banking Authority (EBA) has been awarded the top European Standard for its environmental performance under the European Eco-Management and Audit Scheme (EMAS).

    September 15, 2022 WebPage Regulatory News
    News

    MAS Launches SaaS Solution to Simplify Listed Entity ESG Disclosures

    The Monetary Authority of Singapore (MAS) set out the Financial Services Industry Transformation Map 2025 and, in collaboration with the SGX Group, launched ESGenome.

    September 15, 2022 WebPage Regulatory News
    News

    BCBS to Finalize Crypto Rules by End-2022; US to Propose Basel 3 Rules

    The Basel Committee on Banking Supervision met, shortly after a gathering of the Group of Central Bank Governors and Heads of Supervision (GHOS), the oversight body of BCBS.

    September 15, 2022 WebPage Regulatory News
    News

    IOSCO Welcomes Work on Sustainability-Related Corporate Reporting

    The International Organization of Securities Commissions (IOSCO) welcomed the work of the international audit and assurance standard setters—the International Auditing and Assurance Standards Board (IAASB)

    September 15, 2022 WebPage Regulatory News
    News

    BoE Allows One-Day Delay in Statistical Data Submissions by Banks

    The Bank of England (BoE) published a Statistical Notice (2022/18), which informs that due to the Bank Holiday granted for Her Majesty Queen Elizabeth II’s State Funeral on Monday September 19, 2022.

    September 14, 2022 WebPage Regulatory News
    News

    ACPR Amends Reporting Module Timelines Under EBA Framework 3.2

    The French Prudential Control and Resolution Authority (ACPR) announced that the European Banking Authority (EBA) has updated its filing rules and the implementation dates for certain modules of the EBA reporting framework 3.2.

    September 14, 2022 WebPage Regulatory News
    News

    ECB Paper Discusses Disclosure of Climate Risks by Credit Agencies

    The European Central Bank (ECB) published a paper that examines how credit rating agencies accepted by the Eurosystem, as part of the Eurosystem Credit Assessment Framework (ECAF)

    September 13, 2022 WebPage Regulatory News
    News

    APRA to Modernize Prudential Architecture, Reduces Liquidity Facility

    The Australian Prudential Regulation Authority (APRA) announced reduction in the aggregate Committed Liquidity Facility (CLF) for authorized deposit-taking entities to ~USD 33 billion on September 01, 2022.

    September 12, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8514