The Single Resolution Board (SRB) published a note on reporting on the authority's progress to Eurogroup and the dashboard on the minimum requirement for own funds and eligible liabilities (MREL) for the second quarter of 2022. The data show that almost all banks met the MREL intermediate 2022 targets (including the combined buffer requirement). The very few shortfall cases, however, are being closely monitored. The SRB note highlights, that, overall, most banks already meet the final MREL target (of January 01, 2024). In an additional development, SRB signed a new cooperation arrangement with the Central Bank of Montenegro (CBCG) on the exchange of information on resolution planning and implementation for banks with cross-border operations.
The bi-annual note, as part of which SRB is reporting its progress, provides updates on the recent resolution cases, outlines resolvability progress of SRB banks, provides an update on the Single Resolution Fund (SRF), and work priorities for 2023, SRB notes that its 2022 Resolution Planning Cycle, launched in April 2022, is well on track. SRB, together with the national resolution authorities, has updated 102 resolution plans for the banking groups under its remit. SRB has also sent letters with the 2023 working priorities to the CEOs of the banks under its remit in recent weeks. Moreover, SRB set out the lessons learned from recent resolution case on the Sberbank and the way forward for the crisis management and deposits insurance (CMDI). 2022 and 2023 will be the last years in which the Single Resolution Fund (SRF) is still being built-up, after which contributions should level off. In 2024, SRF will be fully mutualized and stand at ~ EUR 80 billion (1% of covered deposits) and the national Deposit Guarantee Schemes should also have reached their targets of 0.8% of covered deposits. The work priorities for 2023 include liquidity management and funding in resolution for all banks. SRB notes that 2023 will be a transitional year where it will shift focus from the phase-in of general SRB Expectations for Banks (EfB) and preparation of the basic resolution plans to even more targeted bank monitoring.
- Press Release on MREL Dashboard
- MREL Dashboard (PDF)
- Press Release on Bi-Annual Reporting Note
- Bi-Annual Reporting Note (PDF)
- Cooperation Agreement
Keywords: Europe, EU, Banking, MREL, MREL Dashboard, Basel, Regulatory Capital, Single Resolution Fund, SRF, Reporting, Resolvability Assessment, Cooperation Agreement, Common Backstop, Resolution Planning, SRB
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