Consultation on draft Guidelines on triggers for use of early intervention measures

The European Banking Authority (EBA) launched today a consultation on draft Guidelines on  the triggers for using early intervention measures (triggers for early intervention). The Guidelines ensure continuum between the on-going supervision conducted by national authorities in line with the CRD, and the Bank Recovery and Resolution Directive (BRRD). They aim at promoting convergence of supervisory practices in relation to how to apply early intervention measures. The consultation runs until 22 December 2014.

 

The new BRRD regulatory framework has introduced a common set of early intervention measures that complement existing supervisory powers and measures, established under the CRD and applied according to the EBA Guidelines for common procedures and methodologies for SREP. The Guidelines on triggers for early intervention issued today by the EBA are addressed to competent authorities and clarify the conditions for using early intervention measures foreseen by the BRRD. The triggers for early intervention are to a large extent based on the outcomes of the SREP, expressed both in terms of Overall SREP score and scores for individual SREP elements. The draft Guidelines also provide the possibility of triggering early intervention measures on the basis of significant events and material deterioration or anomalies in the key indicators monitored by the competent authorities, before they are fully reflected in the SREP scores. 

 

The Guidelines on triggers for early intervention complement the EBA Guidelines for common procedures and methodologies for SREP; and Guidelines on the circumstances under which an institution shall be considered as ‘failing or likely to fail’ (triggers for resolution). These three Guidelines together form a set of supervisory guidance linking on-going supervision, early intervention and resolution.

Comments to these consultations can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 22 December 2014.

 

All contributions received will be published following the close of the consultation, unless requested otherwise. A public hearing will then take place at the EBA premises on 10 November 2014 from 14.00 to 17.00 UK time.

The proposed Guidelines are based on Article 27(4) of the BRRD, which mandates the EBA to promote the consistent application of triggers for early intervention measures.