Expectations for resolvability of institutions – EBA consultation opened
On 17 March 2021, the European Banking Authority (EBA) opened a consultation on guidelines to improve the resolvability of institutions within the scope of resolution tools. The resolvability of institutions and removal of related obstacles are key objectives of resolution planning.
The purpose of the new EBA guidelines is to compile and implement international standards and practice developed by European resolution authorities. The public consultation for institutions can be responded to through the EBA website by 17 June 2021.
The objective of resolvability is to ensure effective and controlled implementation of the selected resolution strategy in crisis circumstances. The EBA proposal subject to the present consultation covers actions required from both institutions and authorities to improve the resolvability of institutions proactively. The Single Resolution Board (SRB) has also expressed its expectations on resolvability in its document “Expectations for Banks”.
The Financial Stability Authority (FFSA) assesses resolvability as part of institution-specific resolution planning and supports institutions in removing obstacles to resolvability. The FFSA encourages you to study the EBA guidelines and the open consultation.
The EBA estimates that the final version of the guidelines now under consultation will be published in mid-2021. They are intended to be updated as the concept of resolvability develops both internationally and at the European Union level. Compliance with the guidelines will be required from institution falling within their scope as from 2024.
Link to the EBA For website: EBA consults on its draft Guidelines for institutions and resolution authorities on improving resolvability
Further information: bank resolution expert Anni-Mari Karvinen (firstname.lastname(at)rvv.fi)