The European Banking Authority (EBA) has published its 2025 policy for the planning and preparedness priorities of EU resolution authorities. The EBA recommends that resolution authorities in the EU place particular emphasis on the operationalisation of resolution tools, safeguarding the liquidity management of banks in resolution situations, and boosting the ability of banks to provide data for valuation purposes in resolution situations.
The EBA annually outlines the planning and preparedness priorities of resolution authorities in its European Resolution Examination Programme (EREP). The EREP is published in parallel with the European Supervisory Examination Programme (ESEP), which focuses on common, EU-wide priorities for banking supervision.
Each year, the EBA monitors the implementation of common priorities and the consistency of the practices of EU resolution authorities. According to the EBA’s assessment, an increasing level of alignment could be observed between practices and objectives in 2023. EU authorities have effectively exercised their powers to ensure that banks meet their loss absorption requirements in the event of any crises. The resolution authorities of each Member State have helped increase the credibility and transparency of the EU’s resolution system by publishing detailed descriptions of their respective implementations of the bail-in mechanism, a key component for loss absorption and bank recapitalisation. The Financial Stability Authority (FFSA) also published its description in 2023.
Banks have also made significant progress in their liquidity management planning, but authorities should challenge banks more thoroughly over the assumptions underlying these plans. In addition, further improvements could be made to the information systems necessary for the rapid valuation of banks in crisis situations.
The FFSA takes into account the EBA’s findings and common EU-level priorities in its activities and the requirements it sets for banks.
EBA press release, 13 August 2024: The EBA sets 2025 priorities for resolution authorities and reports on the progress achieved in 2023
RVV press release, 21 December 2023: RVV on julkaissut bail-in-kuvauksen (“The FFSA has published its bail-in description”, available in Finnish)
Further enquiries: Anni-Mari Karvinen, Head of Resolution Unit, anni-mari.karvinen(at)rahoitusvakausvirasto.fi
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