Article 88(7) of the Bank Recovery and Resolution Directive (BRRD) mandates the European Banking Authority (EBA) to develop draft regulatory technical standards (RTS) to specify the operational functioning of the resolution colleges that are to be established for EEA cross-border banking groups.
The EBA has now published the final draft RTS which are structured in three main titles:
- Title I – Operational organisation of resolution colleges. This includes provisions for the establishment and the ongoing functioning of resolution colleges. The establishment covers the identification of resolution college members and the process covering potential involvement of third country resolution authorities as observers. It also covers the content and the process for consulting resolution college members on written arrangements and procedures for the functioning of the college;
- Title II – Resolution planning joint decisions. This includes provisions that cover all relevant steps for resolution planning and reaching joint decisions; and
- Title III – Cross-border group resolution. In a situation where a notification that an institution is failing or likely to fail is received by the group-level resolution authority, the process of assessing the need for a group resolution scheme and the need for mutualising financing arrangements should be activated. The provisions in this title support this process by elaborating procedural steps to be taken by the resolution college.
The final draft RTS will be submitted to the European Commission for endorsement, following which they will be subject to scrutiny by the European Parliament and the Council of the EU before being published in the Official Journal of the EU.
View EBA defines functioning of EU banking resolution colleges, 3 July 2015