On 29 March 2019, the Single Resolution Board (SRB) published a position paper setting out its expectations as regards the resolvability of banks in the context of Brexit.
The position paper aims to ensure that the powers of Banking Union resolution authorities are effective in achieving the resolution objectives at the time of resolution. These expectations apply to the following institutions:
- groups headquartered in the Banking Union which have significant business or operational activities in third countries or will maintain such activities in the UK post Brexit (including but not limited to issuance of debt instruments under UK law); and
- subsidiaries under the SRB’s remit of groups headquartered in the UK or in third countries, which have significant business or operational activities in the Banking Union.
The position paper focuses on six main areas:
- MREL eligibility
- internal loss absorbency;
- operational continuity;
- access to financial market infrastructure;
- governance; and
- management information systems.