Bank Recovery and Resolution Directive - EBA publishes technical standards and guidelines on resolution planning
The EBA published on 19 December 2014 final draft Regulatory Technical Standards (RTS) on resolution planning and final Guidelines on measures to reduce or remove impediments to resolvability.
These guidelines and regulatory technical standards aim to promote a consistent and coherent approach to bank resolution across the European Union (EU).
The EBA regulatory technical standards (RTS) identify eight categories of information that should be included in a resolution plan and set out both general and specific requirements to be included in each category to ensure the preferred resolution strategy is achieved.
- Description of the resolution strategy
- Arrangements for information
- Arrangements for operational continuity
- Conclusions of the assessment of resolvability
- Responses from the institution or group
- Detail the criteria for resolution authorities to assess resolvability and address any impediments to resolution.
- Require resolution authorities to consider whether and how some liabilities are less likely to be subject to bail-in.
- Recognise the need for proportionality, which is addressed through a staged assessment process, inherently less complex resolution plans for less complex institutions, and the possibility for Member States to apply simplified obligations to certain institutions.
The guidelines issued along the RTS
- Specify the circumstances under which resolution authorities can require measures to overcome obstacles to resolvability
- Allow a case-by-case analysis of the impediments caused by the institution or group and of the best way to address them. The appropriate measure depends on the organisation and the business model of the institution and on its environment.