On 9 July 2020, the European Banking Authority (EBA) published a statement on resolution planning in light of the COVID-19 pandemic.
With this statement, the EBA intends to reiterate the importance of resolution planning in times of uncertainty to ensure that resolution stands as a credible option in times of stress. In addition, the EBA highlights the importance for resolution authorities to continue promoting institutions’ efforts to enhance their capabilities and increase their resolvability.
The statement also refers to resolution colleges. The EBA notes that there has been increased bilateral engagement between authorities which underlines good cooperation. However, the EBA also states that the Bank Recovery and Resolution Directive introduced resolution colleges as a way of sharing information in a standardised and consistent way with a specific list of members and observers. In this context, the EBA adds that resolution colleges are expected to be used as the main fora to exchange information and share decisions in these challenging times.