Featured Product

    EBA Proposes to Enhance Early Intervention Measures in BRRD

    June 26, 2020

    EBA published a discussion paper exploring the ways to enhance the Bank Recovery and Resolution Directive (BRRD) framework on early intervention measures. In this paper, EBA introduces some of the most important implementation issues in the area of early intervention measures. The paper intends to provide preliminary views on how these implementation issues could be addressed and offers stakeholders the opportunity to provide early input. Comment period for the discussion paper will end on September 25, 2020.

    Early intervention is one of the three pillars of the BRRD, with preparation (recovery and resolution planning) and resolution being the other two pillars. BRRD introduced early intervention measures to expand the existing set of powers available to supervisors toward institutions in difficulties. While monitoring the application of early intervention measures in 2015-2018, EBA observed a limited use of early intervention measures across EU during that period. Instead of early intervention measures, the competent authorities often preferred to apply other pre-BRRD supervisory powers available to them. EBA investigated the reasons for these supervisory practices. While recognizing that early intervention measures could be successfully implemented under the existing regulatory framework, EBA identified some challenges in their application. The paper discuses some of the most important implementation issues in the area of early intervention measures. The objective is to further enhance crisis management tools available for competent authorities, in addition to the well-established and widely used supervisory powers laid down in the Capital Requirements Directive (CRD) and in the Single Supervisory Mechanism Regulation.

    The discussion paper also presents the results of the survey on the application of early intervention measures that EBA conducted among the competent authorities in the first half of 2019. This monitoring covered three aspects: the existing practices in policy implementation, the empirical data on application of early intervention measure across EU, and the key challenges in applying early intervention measure identified by the competent authorities. The key challenges faced by supervisors in the application of the current regulatory framework on the early intervention measures have been grouped into the following categories:

    • Interaction between early intervention measure and other supervisory powers (for example, measures according to Article 104 CRD)
    • Disclosure and reputation risks related to possible obligations to disclose the application of early intervention measures to market participants
    • Specification of early intervention triggers

     

    Related Links

    Comment Due Date: September 25, 2020

    Keywords: Europe, EU, Banking, BRRD, Early Intervention Measures, CRD, Disclosures, Resolution Framework, Crisis Management Framework, EBA

    Featured Experts
    Related Articles
    News

    UK Authorities Consult on Implementation of Basel 3.1 Standards

    The UK authorities have published consultations with respect to the Basel requirements for banks. The Prudential Regulation Authority (PRA) published the consultation paper CP16/22 on rules for the implementation of Basel 3.1 standards.

    November 30, 2022 WebPage Regulatory News
    News

    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.

    November 15, 2022 WebPage Regulatory News
    News

    FSB and NGFS Publish Initial Findings from Climate Scenario Analyses

    The Financial Stability Board (FSB) and the Network for Greening the Financial System (NGFS) published a joint report that outlines the initial findings from climate scenario analyses undertaken by financial authorities to assess climate-related financial risks.

    November 15, 2022 WebPage Regulatory News
    News

    FSB Issues Reports on NBFI and Liquidity in Government Bonds

    The Financial Stability Board (FSB) published a letter intended for the G20 leaders, highlighting the work that it will undertake under the Indian G20 Presidency in 2023 to strengthen resilience of the financial system.

    November 14, 2022 WebPage Regulatory News
    News

    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.

    November 10, 2022 WebPage Regulatory News
    News

    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.

    November 09, 2022 WebPage Regulatory News
    News

    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

    November 09, 2022 WebPage Regulatory News
    News

    EU Finalizes Rules Under Crowdfunding Service Providers Regulation

    The European Union has finalized and published, in the Official Journal of the European Union, a set of 13 Delegated and Implementing Regulations applicable to the European crowdfunding service providers.

    November 08, 2022 WebPage Regulatory News
    News

    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.

    November 07, 2022 WebPage Regulatory News
    News

    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.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8597