Final (awaiting translation into the EU official languages)
The Guidelines on transferability aim at assessing the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools when considered as the preferred or alternative strategies for institutions.
The European Banking Authority (EBA) today published its final Guidelines on transferability to support the resolvability assessment for transfer strategies. In particular, the guidelines on transferability provide guidance relating to (i) the definition of the transfer perimeter and (ii) the steps to operationalise the implementation of the transfer. The transferability Guidelines complement the resolvability Guidelines, which were published on 13 January 2022. Institutions and resolution authorities should comply with these Guidelines in full by 1 January 2024.
Transferability is defined as the elements of resolvability that will facilitate the transfer of an entity, a business line or a portfolio of assets, rights and/or liabilities (“transfer perimeter”) to an acquirer, a bridge institution, or an asset management company. The Guidelines deal with the transfer perimeter definition, separability (i.e. how to facilitate separation of an entity or a business from the rest of the group in resolution) and operational transfer of this perimeter.
The transferability Guidelines aim at supporting the assessment of the feasibility and credibility of transfer strategies and include requirements relating to the implementation of transfer tools. The transferability Guidelines include proportionality measures, as they do not apply to institutions subject to simplified obligations or earmarked for liquidation, unless resolution authorities decide so (in full or in part). In addition, discretion is left to authorities with regards to the extent of application of the Guidelines in cases where the transfer tool is only part of the variant strategy.
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.
The resolvability and transferability Guidelines will be updated and complemented as progress is achieved on relevant policy topics, both at international and EU level. In particular, the EBA is currently consulting on publication of the bail-in mechanics by resolution authorities and working on the topics of resolvability testing and transparency.
The European Banking Authority (EBA) published today its final Guidelines for institutions and resolution authorities on improving banks’ resolvability. These Guidelines represent a significant step in complementing the EU legal framework in the field of resolution based on international standards and leveraging on EU best practices. The EBA also launched today its consultation paper on Guidelines for institutions and resolution authorities on transferability of parts of or a whole bank in the context of resolution to complement the resolvability assessment for transfer strategies. In particular, the Guidelines specify separability in the context of the application of transfer tools. The consultation runs until 15 April 2022.
The resolvability Guidelines, taking stock of the best practices developed so far by EU resolution authorities on resolvability topics, 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.
These Guidelines are addressed to both authorities and institutions in the EU so as to ensure consistent progress on resolvability for all institutions and facilitate resolvability work for cross-border groups and its monitoring in resolution colleges.
Institutions and authorities should comply with these Guidelines in full by 1 January 2024. Complying with the Guidelines will not necessarily equate with being resolvable as this remains for the relevant resolution authority(ies) to determine. Rather, these Guidelines should be seen as the minimum steps that institutions should take towards resolvability.
The draft transferability Guidelines under consultation aim at assessing the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools when considered as the preferred or alternative strategies for institutions.
Transferability is defined as the elements of resolvability that will facilitate the transfer of an entity, a business line or a portfolio of assets, rights and/or liabilities to an acquirer (“transfer perimeter”), a bridge institution, or an asset management company. The Guidelines deal with the transfer perimeter definition, separability (i.e. how to facilitate separation of an entity or a business from the rest of the group in resolution) and operational transfer of this perimeter.
The resolvability and transferability Guidelines will be updated and complemented as progress is achieved on relevant policy topics, both at international and EU level. In particular, the EBA is working on guidelines on the topics of bail-in disclosure, resolution disclosure and resolvability testing.
Comments to the draft transferability 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 15 April 2022.
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 transferability Guidelines on 17 March 2022 from 14:00 to 17:00 Paris time. The dial-in details will be communicated to those who have registered for the meeting.
These own initiative Guidelines and the CP 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.
The European Banking Authority (EBA) published today its final Guidelines for institutions and resolution authorities on improving banks’ resolvability. These Guidelines represent a significant step in complementing the EU legal framework in the field of resolution based on international standards and leveraging on EU best practices. The EBA also launched today its consultation paper on Guidelines for institutions and resolution authorities on transferability of parts of or a whole bank in the context of resolution to complement the resolvability assessment for transfer strategies. In particular, the Guidelines specify separability in the context of the application of transfer tools. The consultation runs until 15 April 2022.
The resolvability Guidelines, taking stock of the best practices developed so far by EU resolution authorities on resolvability topics, 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.
These Guidelines are addressed to both authorities and institutions in the EU so as to ensure consistent progress on resolvability for all institutions and facilitate resolvability work for cross-border groups and its monitoring in resolution colleges.
Institutions and authorities should comply with these Guidelines in full by 1 January 2024. Complying with the Guidelines will not necessarily equate with being resolvable as this remains for the relevant resolution authority(ies) to determine. Rather, these Guidelines should be seen as the minimum steps that institutions should take towards resolvability.
The draft transferability Guidelines under consultation aim at assessing the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools when considered as the preferred or alternative strategies for institutions.
Transferability is defined as the elements of resolvability that will facilitate the transfer of an entity, a business line or a portfolio of assets, rights and/or liabilities to an acquirer (“transfer perimeter”), a bridge institution, or an asset management company. The Guidelines deal with the transfer perimeter definition, separability (i.e. how to facilitate separation of an entity or a business from the rest of the group in resolution) and operational transfer of this perimeter.
The resolvability and transferability Guidelines will be updated and complemented as progress is achieved on relevant policy topics, both at the international and EU level. In particular, the EBA is working on guidelines on the topics of bail-in disclosure, resolution disclosure and resolvability testing.
Comments to the draft transferability 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 15 April 2022.
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 transferability Guidelines on 17 March 2022 from 14:00 to 17:00 Paris time. The dial-in details will be communicated to those who have registered for the meeting.
These own initiative Guidelines and the CP 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.