The EBA sets first examination programme for resolution authorities

The European Banking Authority (EBA) published today a European Resolution Examination Programme (EREP) for 2022, which identifies key topics for resolution authorities’ attention across the European Union.

In line with its mission, the EBA proactively drives convergence in resolution practices through the selection of topics deserving European traction. These topics are identified based on the EBA’s expertise in EU-wide policy development, its role in colleges and on the practical experience of resolution authorities. The programme mirrors the European Supervisory Examination Programme (ESEP) that has applied to prudential supervision in recent years.

The topics identified in the EREP are also for consideration in EU resolution colleges. Engagement between home and host college members on these issues will enhance convergence of activity in the context of cross-border banking groups.

Resolution authorities are expected to consider the following key topics when developing their 2022 priorities:

•  how MREL shortfalls are being addressed;
•  the development of management information systems for valuation in resolution;
•  preparations for managing liquidity needs in resolution.

The EBA will follow up on how the key topics put forward by the EREP, are i) embedded in Resolution authorities priorities for 2022 as well as ii) reflected in their respective activities throughout the year.

Note to the editors

The EBA also published today the European Supervisory Examination Program (ESEP) which is a similar initiative in the supervisory domain. While the two examination programmes are independent, they are part of a coordinated initiative to enhance convergence in Europe.