On 31 March 2020, the Single Resolution Board (SRB) published its Expectations for Banks document. The SRB has updated this document to reflect industry feedback and sets out the capabilities the SRB expects banks to demonstrate in order to show that they are resolvable. It describes best practice and sets benchmarks for assessing resolvability. It also provides clarity to the market on the actions that the SRB expects banks to take in order to demonstrate resolvability.

The ‘Expectations for Banks’ will be subject to a gradual phase-in. Banks are expected to have built up their capabilities on all aspects by the end of 2023, except where indicated otherwise. Where needed and on a bilateral basis, the SRB and banks may agree alternative phase-in dates.

The SRB acknowledges the challenges that banks face in the current situation related to the COVID-19 pandemic. It is prepared to give banks the flexibility they may need to implement the ‘Expectations for Banks’ on an individual basis.

The SRB has also published a letter from its chair Elke König to banks under the SRB’s remit on potential operational relief measures related to the COVID-19 outbreak. Among other things the SRB states that it is committed to working on the 2020 resolution plans and issuing 2020 MREL decisions according to the planned deadlines in early 2021. However, the SRB adds that it will apply a pragmatic and flexible approach in order to consider postponing less urgent information or data requests to this upcoming 2020 resolution planning cycle. However, it adds that the following reports are essential: the Liability Data Report, the Additional Liability Report and the MREL quarterly template.