Resolvability in the Eurozone

The path to becoming resolvable

As the Single Resolution Board (SRB) moves closer towards its goal of making all of the banks within its remit resolvable, its approach is evolving and its expectations for banks are increasing.

In this report, we examine why and how banks should adopt a strategic approach to making themselves resolvable, and where they will need to focus their efforts to achieve their plan.

This report is informed by the results of Deloitte’s fourth Banking Union Centre survey, which asked banks within the SRB’s remit about resolution planning across three key areas: (i) strategic concerns; (ii) embedding and integrating resolution requirements into wider risk management; and (iii) operationalising resolution requirements.

In our view there are four areas that banks should prioritise in order to shape their end-state resolvability and realise its benefits:

  1. Board and senior management responsibility;
  2. Streamlining banking group structure;
  3. Identification of obstacles to resolvability, and their removal; and
  4. Public disclosures, including of measures taken to improve resolvability.

Having a vision for their end-state resolvability will enable banks to better determine priorities within the resolvability work stream and to identify potential synergies between related or overlapping components of the resolvability agenda or between resolvability workstreams and initiatives elsewhere on the regulatory change agenda.

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