System-wide events in the PIA: addendum to the SRB approach & blog post by Sebastiano Laviola
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 event. This consideration strengthens the choice of the best resolution strategy in order to protect the European taxpayer and promote financial stability in the EU.
Sebastiano Laviola, Board Member and Director of Resolution Strategy and Policy Coordination at the SRB, explains the new approach in his blog. The addendum to the public interest assessment can be found here.