The Single Resolution Board (SRB) published its 2023 annual work program that sets out key objectives and priorities. For the coming year, the focus areas will be achieving resolvability of SRB entities and less significant institutions, fostering a robust resolution framework, conducting effective crisis management, operationalizing the Single Resolution Fund, and targeting improvements to areas such as information technology (IT) and organizational structure.
The work program sets out the following key work priorities for 2023:
- Achieving resolvability of SRB banks and less significant institutions—SRB will strive to fill in the gaps to ensure that all banks under the remit of SRB and National Resolution Authorities have resolution plans that can be referred to in the case of crisis. SRB will continue implementing its 12-month resolution planning cycle (RPC), monitoring the build-up of minimum requirements for own funds and eligible liabilities (MREL) by institutions, performing the annual resolvability assessments of banks under its remit, carrying out deep dives and supporting the National Resolution Authorities in their'resolution planning activities with respect to the less significant institutions, and working on resolvability assessment via its oversight function.
- Fostering a robust resolution framework—In the last year of the phase-in of the Expectations for Banks (EfB), SRB will aim to complete and enhance existing guidance and tools to ensure resolvability of banks by the end of 2023. Furthermore, SRB will continue contributing to policy development in international and European fora and integrate the guidance from the European Banking Authority (EBA) and the Financial Stability Board (FSB) into its policy work. SRB will closely collaborate with the National Resolution Authorities in policy development and dissemination.
- Preparing and carrying out effective crisis management—SRB will continue to support the National Resolution Authorities in the development of their National Handbooks, strengthen the operationalization of the bail-in tool, update and enhance internal procedures and crisis materials based on lessons learned from previous crisis cases and dry-run exercises as well as regulatory and policy developments, and initiate development of an information and communication technology (ICT) tool to support crisis management. SRB will carry out dry-runs to test specific areas in resolution and crisis management and plan to organize at least one full-fledged simulation exercise and one technical exercise in 2023. Moreover, SRB will perform lessons learned exercises from all crisis cases in order to identify aspects to further improve crisis management protocols and procedures in the future.
- Operationalizing Single Resolution Fund—SRB will conduct one more exercise of raising ex ante contributions in order to meet the target established for the end of the transition period, and will continue to manage the fund investments and lay down procedures for using the available and additional funds for resolution.
Keywords: Europe, EU, Banking, Work Program, Basel, Regulatory Capital, Resolution Framework, MREL, Resolution Planning, Single Resolution Fund, Crisis Management, ICT Risk, SRB
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