SRB publishes updated guidance documents for bail-in operationalisation

• Guidance enhanced based on bank feedback and experience gained in crisis simulations
• Expands the guidance published in August 2020

The Single Resolution Board publishes its updated operational guidance to banks on the implementation of the bail-in tool, which enables the write-down or conversion of debt owed by a bank to creditors in resolution. The set of documents adds operational guidance to the SRB’s Expectations for Banks, which outlines the responsibilities of banks in making themselves resolvable.

These documents include updated guidance on bail-in playbooks, bail-in data set instructions and an explanatory note on the latter. This guidance compiles the main elements that banks are expected to consider for enhancing their bail-in playbooks and the operationalisation of the bail-in tool in resolution.

Compared to the guidance published in August 2020, the documents add more detail to the expectations related to intra-group loss transfer and recapitalisation mechanisms between the resolution entity and its subsidiaries, as well as the required Management Information Systems (MIS) capabilities.

It further introduces a dedicated section on the testing of bail-in playbooks and MIS capabilities by banks and includes targeted amendments based on the SRB’s experience in this area since August 2020.

The operational guidance, updated by the SRB together with national resolution authorities, takes feedback from banks and lessons learned in crisis simulation exercises into account.