Featured Product

    SRB Sketches Path to Further Ensure Bank Resolvability

    March 22, 2021

    In a recently published article, the SRB Board member Boštjan Jazbec discussed the progress made in ensuring bank resolvability in 2020. Introduction of a new resolution planning cycle based on a 12-month period was a major milestone in 2020 while the start of the gradual phase-in of the Expectations for Banks was the second key milestone. Additionally, in a press briefing, the SRB Chair Dr. Elke König highlighted that, in the coming years, SRB focus will continue to be on building resolvability for banks. SRB must keep up the momentum on increasing the Minimum Requirement for own funds and Eligible Liabilities (MREL), especially in light of the new rules and deadlines in the revised Bank Recovery and Resolution Directive (BRRD2), she noted.

    The SRB Chair announced that the 2021 MREL policy, an expansion of the current policy, will be published in time for the new resolution planning cycle. Also, SRB will soon publish an updated framework on the "Public Interest Assessment," which is a key element for deciding whether a bank will be resolved or go into insolvency. This updated framework will complement the existing idiosyncratic assessment with a scenario reflecting systemic stress, or to put it into simple terms “a rainy day scenario.” In the next few years, SRB plans to fully operationalize the use of all resolution tools and their combined use for all banks, and not least for mid-size banks heavily reliant on deposit funding, which may find it challenging to access markets and issue debt. The SRB Chair also noted that all banks under the SRB remit have received bespoke work programs for 2021 and are expected to have built up their capabilities on all aspects of ensuring resolvability by the end of 2023. Finally, she emphasized the necessity of completing the Banking Union and of the progress toward building a harmonized deposit insurance framework and insolvency procedure for banks across all EU member states.

     

    Related Links

    Keywords: Europe, EU, Banking, Resolution Planning, MREL, Basel, Banking Union, Resolution Framework, BRRD, Regulatory Capital, SRB

    Featured Experts
    Related Articles
    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
    News

    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.

    November 03, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8596