On 23 October 2019, the Single Resolution Board (SRB) launched a public consultation on a draft document setting out its expectations for banks. The document outlines best practice on key aspects of resolvability, in particular it covers:

• the role of the SRB and banks in respect of resolvability; the definition of resolvability and the principle of proportionality;
• seven dimensions of resolvability. These are: loss absorbing and recapitalisation capacity, liquidity and funding in resolution, operational continuity and access to financial market infrastructures, information systems and data requirements, communication and separating and restructuring. Each principle has associated principles that the SRB expects banks to follow; and
• the SRB’s internal resolution team’s (IRT) dialogue with banks on identified impediments to resolvability and the formal procedure for removing substantive impediments.

While the expectations are general, the SRB states that, their application will be tailored to each individual bank, based on a dialogue with the SRB’s IRT.

The deadline for comments on the consultation is 4 December 2019.