Featured Product

    BoE Recognizes PrivatBank Bail-In by National Bank of Ukraine

    May 14, 2021

    BoE decided to recognize the bail-in of PrivatBank, with HM Treasury providing its approval of this decision. This is in response to a request from the National Bank of Ukraine to recognize the bail-in of four loans made by “UK SPV Credit Finance plc” to PrivatBank. The BoE decision does not affect deposits held in UK banks and the recognition gives effect to the bail-in of the four loans in question as a matter of English law.

    As set out in the FSB Key Attributes of Effective Resolution Regimes for Financial Institutions, third-country recognition is central to effective cross-border resolutions because it enables resolution actions taken in one jurisdiction to have effect in other jurisdictions. Under the UK law, BoE is required, where a request for recognition has been made, to make a decision on whether or not to recognize such a resolution action. PrivatBank is a bank incorporated in Ukraine. It does not perform banking activities or have banking customers in the UK. The request for recognition arises solely because of the existence of the four English law loans to PrivatBank. In 2016, PrivatBank was subject to bail-in by the National Bank of Ukraine. Following this, the National Bank of Ukraine submitted a request for recognition to BoE in relation to the bail-in of the four loans, totaling $595 million, which were funded by notes issued by UK SPV and are governed by the English law. Under section 89H of the Banking Act 2009, to decide whether to recognize this bail-in, BoE is required to undertake an analysis to determine whether the third-country bail-in is broadly comparable in its objectives and anticipated results to those of the UK resolution regime. BoE must then also consider whether any of the statutory grounds apply for refusing to recognize the bail-in. While considering its decision, BoE has kept relevant stakeholders, including the National Bank of Ukraine and representatives of creditors, informed about the recognition process throughout.

     

    Related Link: Press Release

     

    Keywords: Europe, UK, Ukraine, Banking, PrivatBank, National Bank of Ukraine, Bain In, Credit Risk, Resolution Framework, Third-Country Recognition, BoE 

    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

    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

    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
    News

    ECB Sets Deadline for Banks to Meet Its Climate Risk Expectations

    The European Central Bank (ECB) published the results of its thematic review, which shows that banks are still far from adequately managing climate and environmental risks.

    November 02, 2022 WebPage Regulatory News
    News

    ESAs, ECB, & EC Issue Multiple Regulatory Updates for Financial Sector

    Among its recent publications, the European Banking Authority (EBA) published the final standards and guidelines on interest rate risk arising from non-trading book activities (IRRBB)

    October 31, 2022 WebPage Regulatory News
    News

    EC Adopts Final Rules Under CRR, BRRD, and Crowdfunding Regulation

    The European Commission (EC) recently adopted regulations with respect to the calculation of own funds requirements for market risk, the prudential treatment of global systemically important institutions (G-SIIs)

    October 26, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8582