In a severe banking crisis, the question of what to do with impaired assets is often raised. The most straightforward option, of selling the assets at a low price in a fire sale, can trigger an unnecessary destruction of value, with the banking framework aims to avoid. Governments have explored...
The SRB has today published a revised approach to the Public Interest Assessment policy (PIA) in resolution planning. The updated approach takes into account that a bank’s failure may take place not only under an idiosyncratic scenario, but also under broader financial instability or a system-wide...
The public interest assessment is a key safeguard in bank resolution, to protect taxpayers and financial stability. When faced with a failing bank, the SRB considers whether resolution best serves the public interest or whether the bank can go into normal insolvency proceedings. To do this, we...
Today, the Single Resolution Board (SRB) publishes its updated ‘ Minimum Requirements for Own Funds and Eligible Liabilities (MREL) Policy under the Banking Package ’. The updated policy introduces a number of new elements and refinements, based on the changes required by the Banking Package. MREL...
The Chair of the Single Resolution Board , Elke König will inform on Friday 21 May 2021 the Eurogroup ministers about ongoing activities of the SRB, focusing on progress regarding resolution planning, resolvability and minimum requirement for own funds and eligible liabilities (MREL). The Chair...
