Adopted and published on the Official Journal
The draft Regulatory Technical Standards (RTS) on notifications and notice of suspension have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD). These RTS aim at harmonising the process and content of notifications and notice of suspension arising from a determination that a firm is failing or likely to fail and the subsequent resolution actions.
The EBA published today its final draft Regulatory Technical Standards (RTS) on notifications and notice of suspension. These RTS have been developed within the framework established by the Bank Recovery and Resolution Directive (BRRD) and aim at harmonising at EU level the process and content of notifications, as well as the notice of suspension, to be followed when a banking institutions operating in the EU is failing or likely to fail.
The EBA's RTS on notification specify the process, as well as the information required, for EU competent authorities to notify when a banking institution under their supervision is failing or likely to fail. A consistent, transparent and reliable pan-EU framework, made of common standards for all Member States, is essential for EU competent authorities to make prompt and effective decisions, as well as for all parts affected by the resolution action to understand resolution procedures.
The work of the EBA is based on the prescriptions in the BRRD which define the scenarios for determining that a banking institution operating in the EU is failing or likely to fail. The responsibility to identify failing institutions primarily lies with the management body of the institution itself. This information must then be notified to the Competent Authority at national level, which in turn also alerts the concerned Resolution Authority. The BRRD also envisages that either the Competent or Resolution authority can independently initiate an assessment of failing or likely to fail.
The RTSs issued today define the process and content of a notification and summarise the effects of resolution actions, in particular with attention to the effects and implications it will have for retail customers.
The proposed draft RTS have been developed according to Article 82(3) of Directive 2014/59/EU (the Bank Recovery and Resolution Directive or BRRD), which mandates the EBA to develop technical standards in order to specify the procedures and contents relating to the notification referred to in Article 81(1), (2) and (3) and the notice of suspension referred to in Article 83.