March 04, 2019

EC published the Delegated Regulation (EU) 2019/348 on regulatory technical standards specifying the criteria for assessing the impact of the failure of an institution on financial markets, on other institutions, and on funding conditions. Regulation (EU) 2019/348 supplements the Bank Recovery and Resolution Directive or BRRD (Directive 2014/59/EU) of the European Parliament and Council. Regulation (EU) 2019/348 shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

BRRD requires the member states to ensure that competent and resolution authorities assess the impact that the failure of an institution could have due to a number of factors specified in that Article 4(1) of the Directive. This involves conducting assessment based on certain qualitative and quantitative criteria. The assessment based on qualitative criteria should only be conducted where the assessment on the basis of quantitative criteria does not lead to the conclusion that, in the light of the impact that the institution's failure could have, full obligations, rather than merely simplified obligations, are required. To ensure a convergent and effective application of Regulation (EU) 2019/348, competent and resolution authorities should assess the quantitative criteria against an EU common threshold in the form of a total quantitative score. Competent and resolution authorities should calculate that total quantitative score in accordance with a set of indicators, using the values from the applicable supervisory reporting framework laid down in Implementing Regulation (EU) No 680/2014.

The first four articles of Regulation (EU) 2019/348 describe the qualitative and quantitative assessment criteria for credit institutions and investment firms. The regulation also addresses assessments for institutions belonging to groups (Article 5), promotional banks (Article 6), and credit institutions subject to an orderly winding-up process (Article 7). Considering the different purposes of recovery and resolution planning, competent and resolution authorities from the same member state may reach different conclusions about the application of Articles 1 to 4, 6 and 7, in which case they shall regularly assess whether those different conclusions remain justified. The first two Annexes to this regulation cover indicators and/or weights for calculating the total quantitative score for credit institutions and investment firms. The values of the indicators shall be determined on the basis of the indicators specified in Annex III. Regulation (EU) 2019/348 is based on the draft regulatory technical standards submitted by EBA to EC.


Related Links

Effective Date: March 24, 2019

Keywords: Europe, EU, Banking, BRRD, Regulation 2019/348, Recovery and Resolution, Regulatory Technical Standards, EBA, EC

Related Articles
News

US Agencies Adopt Rule to Exclude Community Banks from Volcker Rule

US Agencies (CFTC, FDIC, FED, OCC, and SEC) adopted a final rule to exclude community banks from the Volcker Rule, in line with amendments to certain sections of the Economic Growth, Regulatory Relief, and Consumer Protection (EGRRCP) Act.

July 22, 2019 WebPage Regulatory News
News

US Agencies Adopt Amendments to Simplify Regulatory Capital Rules

US Agencies (FDIC, FED, and OCC) adopted a final rule that reduces regulatory burden by simplifying several requirements in the regulatory capital rules for banks.

July 22, 2019 WebPage Regulatory News
News

IA of Hong Kong Delegates Inspection and Investigation Powers to HKMA

HKMA and IA of Hong Kong jointly issued a statement announcing the delegation of the inspection and investigation powers of IA to HKMA, pursuant to the statutory regulatory regime for insurance intermediaries under the Insurance Ordinance.

July 19, 2019 WebPage Regulatory News
News

FSB Extends Implementation Timeline for Policy Recommendations on SFTs

FSB announced adjustments to the implementation timelines for its recommendations on securities financing transactions (SFTs), specifically those related to the minimum haircut standards for non-centrally cleared SFTs.

July 19, 2019 WebPage Regulatory News
News

EBA Single Rulebook Q&A: Third Update for July 2019

EBA published answers to six questions under the Single Rulebook question and answer (Q&A) tool this week.

July 19, 2019 WebPage Regulatory News
News

EBA Report Assesses Regulatory Framework for Fintech Activities

EBA published the findings of its analysis on the regulatory framework applicable to fintech firms when accessing the market.

July 18, 2019 WebPage Regulatory News
News

OSFI Revises Capital Requirements for Operational Risk for Banks

OSFI is revising its capital requirements for operational risk, in line with the final Basel III revisions published by BCBS in December 2017.

July 18, 2019 WebPage Regulatory News
News

OSFI Consults on Revised Principles for Management of Liquidity Risk

OSFI proposed revisions to Guideline B-6 on the principles for the management of liquidity risk.

July 18, 2019 WebPage Regulatory News
News

ESMA Guidance on Disclosures for Credit Rating Sustainability Issues

ESMA published the technical advice on sustainability considerations in the credit rating market, along with the final guidelines on disclosure requirements applicable to credit ratings.

July 18, 2019 WebPage Regulatory News
News

FASB Issues Q&A on Estimation of Expected Credit Losses by Firms

FASB issued a second question-and-answer (Q&A) document that addresses more than a dozen frequently asked questions related to the Accounting Standards Update No. 2016-13 titled “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.”

July 17, 2019 WebPage Regulatory News
RESULTS 1 - 10 OF 3482