The Single Resolution Board (SRB) has published its first multi-annual programming document, including its Work Programme 2018.
The SRB sets out a roadmap for improving the resolvability of the banks under its remit over the next three years. Key objectives include completion and refinements of resolution plans and definition of the minimum requirement for own funds and eligible liabilities for all major banking groups in its remit.
By 2020, the SRB envisages having developed complete resolution plans for all its banking groups, which will benefit from the finalisation of all internal policies and standards in Spring 2019. These plans will comprise binding targets for minimum requirements for own funds and eligible liabilities at consolidated and solo levels and will reflect the SRB’s advanced work concerning the removal of obstacles to resolution. It is also expected that by 2020 resolution planning for less significant institutions (LSIs) will reach a steady state, with nearly all affected LSIs having a resolution plan.
Other key points in the document include:
- in 2018, the SRB will enhance resolvability inter-alia by drafting and adopting resolution plans for 99% of the groups under its responsibility. The only banks not covered by a resolution plan will be those that are subject to structural changes;
- in 2018, the SRB will reinforce its resolution framework. A key milestone will be the development of a policy on identifying and addressing substantive impediments to resolvability;
- under its Resolution Readiness project, the SRB will focus in 2018 on the implementation of a previously defined roadmap that establishes optimal crisis processes and workflows, and which will entail significant information technology adjustments; and
- under its Valuation project on building a common framework for valuations in resolution, the SRB will test its application, performing dry-run valuations on two types of banks with the characteristics of a global systemically important bank and a medium sized bank.
View SRB publishes first multi-annual programming document, including its work programme 2018, 4 December 2017
