17 March 2021
The European Banking Authority (EBA) published today a consultation on Guidelines for institutions and resolution authorities on improving resolvability. These Guidelines represent a significant step in complementing the EU legal framework in the field of resolution. They aggregate existing international standards, leverage on existing EU best practices and implement them into an EU-wide legal document. The consultation runs until 17 June 2021.
These Guidelines take stock of the best practices developed so far by EU resolution authorities on resolvability topics. In particular, these Guidelines set-out requirements to improve resolvability in the areas of operational continuity in resolution, access to Financial Market Infrastructure, funding and liquidity in resolution, bail-in execution, business reorganisation and communication.
While not covering all topics relevant to resolvability either because (i) those are covered elsewhere (e.g. the calibration and eligibility of loss absorbing capacity is extensively covered in BRRD) or (ii) because those topics will be further specified in future EBA regulatory products (e.g. transferability), these Guidelines aim to be the policy point of reference for both authorities and institutions on resolvability related topics in the EU. The aim is to ensure consistent progress on resolvability for all institutions and facilitate resolvability work for cross-border groups and its monitoring in resolution colleges.
These Guidelines will be updated on a regular basis as progress is achieved on relevant policy topics, both at international and EU level.
Comments to the draft Guidelines can be sent by clicking on the "send your comments" button on the EBA's consultation page. The deadline for the submission of comments is 17 June 2021.
All contributions received will be published following the close of the consultation, unless requested otherwise.
The EBA will hold a virtual public hearing on the draft Guidelines on 20 April 2021 from 10:00 to 13:00 Paris time. The dial-in details will be communicated to those who have registered for the meeting.
These own initiative guidelines are based on Article 16 of Regulation (EU) 1093/2010, which mandates the Authority to issue guidelines and recommendations addressed to competent authorities or financial institutions with a view to establishing consistent, efficient and effective supervisory practices within the European System of Financial Supervision, and to ensuring the common, uniform and consistent application of Union law.
Franca Rosa Congiu