On 17 March 2021, the European Banking Authority (EBA) issued a consultation paper on draft guidelines for institutions and resolution authorities on improving resolvability.
When finalised the guidelines will be a point of reference for both Member State competent authorities and institutions on resolvability related topics in the EU. The guidelines seek to implement existing international standards on resolvability and take stock of the best practices so far developed by EU resolution authorities on resolvability topics. In particular, the guidelines set out requirements to improve resolvability in the areas of operational continuity in resolution, access to financial market infrastructures, funding and liquidity in resolution, bail-in execution, business reorganisation and communication. However, the guidelines do not cover all topics relevant to resolvability either because (i) they are covered elsewhere (for example, the calibration and eligibility of loss absorbing capacity is extensively covered in the Bank Recovery and Resolution Directive) or (ii) because those topics will be further specified in future EBA regulatory products (for example, transferability).
The deadline for comments on the consultation paper is 17 June 2021.