SRB and EBA policy statements
Guidelines and policy statements issued by the Single Resolution Board (SRB) and the European Banking Authority are listed below by category.
SRB and EBA policy statements concerning MREL
(SRB) issued updated guidance on the early redemption of eligible liabilities (prior permission regime). The updated guidance specifies the permission regime for the redemption of eligible liabilities to align it with regulatory technical standards (RTS) issued by the European Banking Authority (EBA).
SRB has defined the eligibility of financial instruments issued under UK law (UK law instruments) for MREL if they do not include a contractual bail-in recognition clause.
The SRB has published checklists and forms that provide assurance on MREL instrument eligibility and that must be signed by the bank’s senior management.
The Single Resolution Board (SRB) publishes on its website its MREL dashboard (Minimum Requirements for Own Funds and Eligible Liabilities), which is designed to present an overview of the MREL situation in the banks within its competence and of the costs and availability of borrowing. The MREL dashboard is based on the data provided to the SRB by the banks and is published quarterly.
SRB MREL policy under the banking package (2022)
COVID-19 crisis: the SRB's approach to MREL targets
EBA issues first monitoring report on TLAC-MREL instruments accompanied by 15 recommendations
EBA updates its quantitative analysis on MREL
SRB and EBA policy statements concerning resolution planning
The SRB has published its RPC Booklet for the Resolution Planning Cycle 2021. Its purpose is to inform stakeholders in more detail of the main processes and phases of the current RPC that was launched on 1 April 2021, applicable to institutions under the SRB's direct remit.
The SRB’s expectations regarding the resolvability of institutions are described in the SRB's “Expectations for banks” document. It is complemented by the SRB’s operational guidance providing institutions with additional information on various sub-issues under resolvability, including:
- liquidity and funding in resolution, on the identification of key liquidity entities and key drivers of liquidity in resolution planning;
- financial market infrastructures (FMI), on the preparation of contingency plan for FMI service providers;
- operational continuity in resolution (OCIR), on the identification and documentation of relevant services and managing continuity risks. The SRB has complemented this guidance on 29 November 2021 with respect to the financial resilience of service providers and staff roles;
- bail-in implementation, on the preparation of play-in playbooks and bail-in information requirements; and
- separability for transfer tools, on the analysis of separability and the preparation of transfer playbooks.
See: SRB Policies and Recovery, resolution and DGS
EBA policy statements concerning deposit guarantee schemes
The EBA issued revised guidelines on stress tests for deposit guarantee schemes. The guidelines require deposit guarantee schemes in the European Economic Area to test comprehensively their ability to perform their statutory functions, and to report the results of the tests in a harmonised manner to the EBA.
Other SRB and EBA policy statements
The Financial Stability Authority’s bulletin on the notification procedure relates to certain agreements under the laws of third countries whose terms and conditions may not include write-down and conversion powers. At present the notification procedure does not apply to institutions with a bankruptcy strategy.
SRB: Banking Union resolution and access to FMIs