On 10 August 2020, the Single Resolution Board (SRB) published the following documents designed to give banks within its remit operational guidance on the implementation of the bail-in tool:
- Q&A for publication of bail-in guidance. The Q&A explains that the bail-in playbook is an internal document of banks, establishing a minimum set of objectives, processes and governance structures to support the implementation of write down and conversion powers by Eurozone national resolution authorities.
- Bail-in data explanatory note. The note aims to provide explanations with respect to the data required for the application of the bail-in tool. It specifies, amongst others, the SRB’s minimum expectations concerning liability data that a bank under resolution should provide to resolution authorities in an accurate and timely manner. It also elaborates on the required level of data quality and further considerations that need to be taken into account – inter alia – in order to ensure sufficient legal certainty while implementing the bail-in tool.
- Bail-in data instructions. This publication sets out the main elements that banks are expected to consider for establishing the required capabilities of management information systems (MIS) in order to enable the timely and effective execution of write-down and conversion of capital instruments and eligible liabilities pursuant to Article 21 of the Regulation establishing the Single Resolution Mechanism (SRMR) and the execution of the bail-in tool in resolution.
- Operational guidance on bail-in playbooks. This publication covers the main elements that banks are expected to consider for developing their bail-in playbooks. In a crisis, depending on the specific situation and in line with the applicable legal framework, the SRB reserves the right to deviate from actions and expectations of this publication.
The documents are not a new set of SRB policies, but rather a guide to help banks ensure the required preparation for bail-in application during the resolution planning phase and to fulfil the SRB Expectations for Banks, which is to ensure resolvability.