Report on the appropriate target level basis for resolution financing arrangements (EBA-OP-2016-18).pdf
Report on the appropriate target level basis for resolution financing arrangements (EBA-OP-2016-18)
Report on the appropriate target level basis for resolution financing arrangements (EBA-OP-2016-18)
The European Banking Authority (EBA) published today its final report on the reference point for the target level of national resolution financing arrangements. In the report, the EBA recommends changing the basis from covered deposits to a total liabilities-based measure and, in particular, total liabilities (excluding own funds) less covered deposits. The proposed methodology would align the target level basis with the reference base used for the calculation of individual contributions to national resolution financing arrangements.
The EBA issued today advice to the European Commission on the resolution framework for EU banks, covering the definition of critical functions and core business lines, as well as rules for the exclusion of liabilities from the application of the bail-in tool. The Authority reminded that the purpose of the bail-in tool is to ensure the legislative principle that shareholders and creditors of a failing institution have to bear its losses, and as such exemptions should be applied cautiously. The EBA advice on critical functions is based on its work on rules for recovery planning and on a comparative analysis of the recovery plans of 27 European cross-border banking groups which identified key strengths and weaknesses in banks’ approaches and is also published today.
Consultation Paper on ITS on MREL (EBA-CP-2016-15)
Annex to the Consultation Paper on ITS on MREL reporting by Resolution Authorities
The European Banking Authority (EBA) launched today a public consultation on draft Implementing Technical Standards (ITS) on the procedures and templates which Resolution Authorities should use when informing the EBA of the minimum requirements for own funds and eligible liabilities (MREL) that have been set for each institution under their jurisdiction. These standards will enable the EBA to monitor on a consistent basis the implementation of MREL across the Union.