The European Banking Authority (EBA) has published a Consultation Paper on draft regulatory technical standards (RTS) on the content of resolution plans and the assessment of resolvability.
The EBA is required by Articles 10, 12 and 15 of the Bank Recovery and Resolution Directive (BRRD) to draft RTS on the content of resolution plans for firms and groups and on the matters and criteria that resolution authorities should apply in the assessment of resolvability.
The proposed draft RTS:
- specify eight categories of information that should be contained in a resolution plan, including a description of the resolution strategy and the financing arrangements for resolution; and
- set out a staged approach for the assessment of resolvability. This involves resolution authorities first assessing whether liquidation under normal insolvency procedures is feasible. If not, they should identify a preferred resolution strategy (which may be a single-point-of-entry or a multiple-point-of-entry strategy) and assess the feasibility of that strategy.
The deadline for responding to the Consultation Paper is 9 October 2014. The EBA is required to submit the draft RTS to the European Commission by 3 July 2015.