Featured Product

    SRB Issues Guidance on Bail-In for International Debt Securities

    March 30, 2021

    SRB published a guidance document on the elements that banks should consider for the implementation of the bail-in with respect to the international bearer debt securities issued by and safekept in the international central securities depositories (ICSDs), Euroclear Bank (EB), and Clearstream Banking Luxembourg (CBL). The guidance document has been developed based on discussions with the ICSDs. Banks are expected to reflect the content of this document in their bail-in playbooks as from 2021, in accordance with the SRB Expectations for Banks document. SRB also published a separate Annex II in the form of an Excel spreadsheet containing different templates for each relevant scenario with respect to the information that the ICSDs will need to receive to perform a write-down and/or conversion to reflect the bail-in in the accounts of their participants.

    The guidance sets out elements that banks should consider with regard to the write-down and conversion of international bearer debt securities (Eurobonds) issued by and safekept in the ICSDs. These securities represent about 30% of the liabilities (in the form of securities) of banks under SRB remit. The document explains the role of ICSDs in a bail-in, the stakeholders involved, processes and steps to follow, data and information requirements, communication timelines, and channels used. The document is based, where possible, on the existing market practices and operational rules supporting the execution of the relevant corporate actions. The published document, however, does not address the bail-in execution steps for instruments issued and safekept in the local (national) CSDs (for example, shares, other instruments of ownership, and domestic bonds), as performed by these local CSDs

    This document should be read in conjunction with the previously published guidance on bail-in playbooks, which covers the identification of instruments, internal and external execution processes, and the provision of bail-in data points. The document aims to:

    • provide a better understanding of the procedures the ICSDs would apply in the case of the bail-in of international bearer debt securities for which the ICSDs act as issuer CSDs. Any actions undertaken by the ICSDs in respect of domestic securities, in their role of investor CSDs, will reflect events taking place on the local market.
    • provide information to banks and resolution authorities across jurisdictions about how the bail-in of such instruments would be reflected in the books of the ICSDs.
    • support banks in preparing their bail-in playbooks, particularly in respect of securities issued and safekept in the ICSDs.

     

    Related Links

    Keywords: Europe, EU, Banking, Resolution Planning, Basel, Banking Union, Resolution Framework, BRRD, Bail-In, CSD, SRB

    Featured Experts
    Related Articles
    News

    US Agencies Issue Several Regulatory and Reporting Updates

    The Board of Governors of the Federal Reserve System (FED) adopted the final rule on Adjustable Interest Rate (LIBOR) Act.

    January 04, 2023 WebPage Regulatory News
    News

    ECB Issues Multiple Reports and Regulatory Updates for Banks

    The European Central Bank (ECB) published an updated list of supervised entities, a report on the supervision of less significant institutions (LSIs), a statement on macro-prudential policy.

    January 01, 2023 WebPage Regulatory News
    News

    HKMA Keeps List of D-SIBs Unchanged, Makes Other Announcements

    The Hong Kong Monetary Authority (HKMA) published a circular on the prudential treatment of crypto-asset exposures, an update on the status of transition to new interest rate benchmarks.

    December 30, 2022 WebPage Regulatory News
    News

    EU Issues FAQs on Taxonomy Regulation, Rules Under CRD, FICOD and SFDR

    The European Commission (EC) adopted the standards addressing supervisory reporting of risk concentrations and intra-group transactions, benchmarking of internal approaches, and authorization of credit institutions.

    December 29, 2022 WebPage Regulatory News
    News

    CBIRC Revises Measures on Corporate Governance Supervision

    The China Banking and Insurance Regulatory Commission (CBIRC) issued rules to manage the risk of off-balance sheet business of commercial banks and rules on corporate governance of financial institutions.

    December 29, 2022 WebPage Regulatory News
    News

    HKMA Publications Address Sustainability Issues in Financial Sector

    The Hong Kong Monetary Authority (HKMA) made announcements to address sustainability issues in the financial sector.

    December 23, 2022 WebPage Regulatory News
    News

    EBA Updates Address Basel and NPL Requirements for Banks

    The European Banking Authority (EBA) published regulatory standards on identification of a group of connected clients (GCC) as well as updated the lists of identified financial conglomerates.

    December 22, 2022 WebPage Regulatory News
    News

    ESMA Publishes 2022 ESEF XBRL Taxonomy and Conformance Suite

    The General Board of the European Systemic Risk Board (ESRB), at its December meeting, issued an updated risk assessment via the quarterly risk dashboard and held discussions on key policy priorities to address the systemic risks in the European Union.

    December 22, 2022 WebPage Regulatory News
    News

    FCA Sets up ESG Committee, Imposes Penalties, and Issues Other Updates

    The Financial Conduct Authority (FCA) is seeking comments, until December 21, 2022, on the draft guidance for firms to support existing mortgage borrowers.

    December 20, 2022 WebPage Regulatory News
    News

    FSB Reports Assess NBFI Sector and Progress on LIBOR Transition

    The Financial Stability Board (FSB) published a report that assesses progress on the transition from the Interbank Offered Rates, or IBORs, to overnight risk-free rates as well as a report that assesses global trends in the non-bank financial intermediation (NBFI) sector.

    December 20, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8697