EBA欧洲银行-EBA-RTS-2014-15-28Final-draft-RTS-on-Resolution-Plan-Contents29_51页_898kb

EBA Final Draft Regulatory Technical Standards on Resolution Plans and Resolvability Assessment

Core Content

The European Banking Authority (EBA) has published a Final Draft Regulatory Technical Standards (RTS) under the Bank Recovery and Resolution Directive (BRRD), which outlines the content of resolution plans for institutions and groups, as well as the criteria for assessing resolvability. The RTS aims to ensure a consistent and proportionate application of resolution planning and resolvability assessment across the European Union.

Main Viewpoints

• Resolution Planning Process: The EBA emphasizes that a robust resolution planning process is essential for the success of resolution authorities in achieving their objectives. This includes a staged approach to resolvability assessment, starting with the feasibility and credibility of liquidation and moving to the identification and assessment of a preferred resolution strategy.

• Proportionality: The RTS respects the principle of proportionality in two ways:

  • Simpler institutions require less detailed resolution plans and may be liquidated rather than resolved.
  • Member states may apply simplified resolution planning obligations under certain conditions.

• Resolution Strategy Types: The RTS outlines two main types of resolution strategies:

  • Single Point of Entry (SPE): A strategy where a single resolution authority applies resolution tools at the parent or holding company level.
  • Multiple Point of Entry (MPE): A strategy where multiple resolution authorities apply tools across different sub-groups or entities within a cross-border group.

• Resolvability Assessment: The assessment process should be iterative, harmonized, and based on a preferred resolution strategy. It includes evaluating the feasibility of liquidation and the credibility of a resolution strategy, with the latter focusing on systemic impact and impediments to implementation.

• Financing and Communication: Resolution plans must include detailed financing arrangements, sources of funding, and communication strategies with stakeholders, including customers, employees, and regulatory bodies.

Key Information

Categories of Information in Resolution Plans

1. Summary: A concise overview of the institution or group and the key elements of the plan.
2. Resolution Strategy: A detailed description of the preferred strategy, including resolution actions, legal entities involved, critical functions, timeframe, and variants.
3. Information Arrangements: Processes for gathering and providing information necessary for valuation and marketability.
4. Operational Continuity: Arrangements to maintain access to critical functions, including shared systems, interdependencies, and payment infrastructure.
5. Financing: Description of funding needs, sources, terms, and cross-border financing principles.
6. Communication Plan: Strategies for informing stakeholders, including employees, customers, and regulatory bodies.
7. Resolvability Assessment Conclusions: Evaluation of resolvability, including changes to MREL (Minimum Requirement for Own Funds and Eligible Liabilities) and any identified impediments.
8. Responses from the Institution or Group: Input from the institution or group regarding the resolution plan and resolvability assessment.

Resolvability Assessment Criteria

• Feasibility of Liquidation: The ability of deposit guarantee schemes (DGS) to ensure timely repayment of covered deposits.
• Credibility of Resolution Strategy: Assessment of the likely systemic impact of a counterfactual liquidation, including effects on financial markets, infrastructures, other institutions, and the real economy.
• Impediments to Resolvability: The assessment must consider matters related to:
  • Structure and Operations
  • Financial Resources
  • Information
  • Cross-Border Issues
  • Legal Issues

Supporting Elements

• MREL Consideration: The RTS includes an analysis of how certain liabilities may not be subject to bail-in, which is crucial for setting the minimum requirement for own funds and eligible liabilities (MREL).
• Cross-Border Coordination: The RTS encourages cooperation between resolution authorities in different member states and third countries.
• Simplified Obligations: Under certain conditions, member states may apply simplified resolution planning obligations, as outlined in Article 4 of the BRRD.

Conclusion

The EBA's draft RTS provides a comprehensive framework for the content of resolution plans and the assessment of resolvability, aligning with both national standards and FSB guidance. It aims to enhance the effectiveness and consistency of resolution planning and ensure that resolution strategies are feasible, credible, and proportionate. The RTS is intended to be part of a single Regulation that will be adopted by the European Commission, ensuring that all relevant provisions are implemented in a coherent and synchronized manner.