The Single Resolution Board (SRB) today publishes its final ‘Expectations for Banks’ document, along with an overview of SRB responses to the industry consultation. The consultation took place between 23 October and 4 December 2019.
The ‘Expectations for Banks’ document, which has been updated to reflect industry feedback, sets out the capabilities the SRB expects banks to demonstrate to show that they are resolvable. It describes best practice and sets benchmarks for assessing resolvability. It also provides clarity to the market on the actions that the SRB expects banks to take in order to demonstrate resolvability.
The ‘Expectations for Banks’ will be phased in gradually. Banks are expected to have built up their capabilities on all aspects by the end of 2023, except where indicated otherwise. Where needed and on a bilateral basis, the SRB and banks may agree alternative phase-in dates. The Expectations are tailored to each individual bank and its resolution strategy through their annual work programmes, allowing for flexibility and proportionality.
The SRB acknowledges the challenges that banks face in the current and unprecedented situation related to the Covid-19 pandemic, and that their focus is on business continuity and supporting the economy. The SRB, in close cooperation with other authorities and the banks under its remit, is carefully monitoring the situation. It is prepared to give banks the flexibility they may need to implement the ‘Expectations for Banks’ on an individual basis.