EBA updates standards for bank resolution and cooperation
The European Banking Authority (EBA) today published updated Regulatory Technical Standards (RTS) on resolution plans and resolution colleges. The revisions aim to simplify planning and enhance cooperation among authorities.
Tailoring plans for effective resolution
The updated RTS introduce a more consistent and concise set of essential information for resolution plan summaries, stemming from a comprehensive review of the 2016 standards.
Plan content will now be more proportionate and focused, tailored to the specificities of each institution or group.
The framework also clarifies the separation between resolution strategy selection and the assessment of resolvability.
Furthermore, a reorganised resolvability assessment structured around seven core dimensions aims to ensure greater consistency and effectiveness across the EU, drawing on a decade of practical experience and insights from crisis cases.
Enhanced cooperation in resolution colleges
The revisions to the RTS on resolution colleges aim to simplify processes, thereby reducing administrative burden for authorities.
They also seek to improve cooperation and information exchange among all authorities involved in both the planning and execution phases of resolution.
Additionally, the updates strengthen coordination mechanisms crucial for the effective implementation of resolution schemes, particularly for cross-border banking groups.
These enhancements are designed to improve the operational framework for colleges.
Refining the resolution toolkit
These updated standards represent a crucial evolution in the European resolution framework, directly addressing lessons from a decade of practical experience.
By streamlining planning and enhancing cross-border cooperation, they aim to make bank resolution processes more efficient and effective.
This refinement of the operational toolkit is vital for maintaining financial stability.