Guidance on bail-in for international debt securities

The SRB published a document which describes elements that banks should consider for the operationalisation of the bail-in in respect of international bearer debt securities issued by and safekept in the international central securities depositories (ICSDs), Euroclear Bank (EB) and Clearstream Banking Luxembourg (CBL).

The document published today describes elements that banks should consider with regard to the write-down and conversion of international bearer debt securities (Eurobonds) issued by and safekept in the ICSDs. These securities represent some 30% of the liabilities (in the form of securities) of banks under SRB remit.

This document was developed based on discussions with the ICSDs. Banks are expected to reflect the content of this document in their bail-in playbooks, in accordance with the SRB’s Expectations for Banks document.

The document explains the role of ICSDs in a bail-in, the stakeholders involved, processes and steps to follow, data and information requirements, communication timelines and channels used. It is based, where possible, on existing market practices and operational rules supporting the execution of the relevant corporate actions.

The document aims to:

  • provide a better understanding of the procedures the ICSDs would apply in the case of the bail-in of international bearer debt securities for which the ICSDs act as issuer CSDs. Any actions undertaken by the ICSDs in respect of domestic securities, in their role of investor CSDs, will reflect events taking place on the local market;
  • provide information to banks and resolution authorities across jurisdictions about how the bail-in of such instruments would be reflected in the books of the ICSDs;
  • support banks in preparing their bail-in playbooks, in particular in respect of securities issued and safekept in the ICSDs.
Table

Contact the Single Resolution Board

Treurenberg 22, 1049 Brussels
Belgium

+32 (0) 2 490 30 00