Data collection for resolution planning and the determination of the Minimum Requirement for own funds and Eligible Liabilities (MREL)
Today, the Single Resolution Board (SRB), via the National Resolution Authorities (NRAs) of the Banking Union Member States, starts to collect the data required for resolution planning and the determination of MREL from all banking groups under its direct responsibility.
Background - Liability Data Template
The SRB is committed to preparing resolution plans for all major banks under its remit (SRB News: "SRB publishes the list of banks under its remit"). This requires the SRB to set MREL targets for these banks in 2016. In order to achieve this goal and to better analyse the liability structure of banks in 2016, the SRB publishes its Liability Data Template (and accompanying guidance), through which banks will provide the necessary data to the SRB. This data request was previously announced at the SRB's Second Industry Dialogue meeting.
The Bank Recovery and Resolution Directive (BRRD) establishes new concepts and categories of liabilities, which do not correspond to those currently in use in the Single Supervisory Mechanism (SSM). The SRB acknowledges the administrative challenge this poses for banks. The SRB has therefore adopted a gradual approach to the collection of data in the Liability Data Template. Mandatory data requests have been kept to the minimum required by the BRRD, while other data are only to be provided on a priority or best efforts basis in 2016.
The SRB anticipates that banks will have queries in respect of the Liability Data Template. These should be addressed to the respective NRAs after consultation of the guidance published with the Template by no later than 15 April 2016. The guidance will be regularly updated, with a final version published by 30 April 2016 to allow banks time to adjust their data submissions.
Further information for resolution planning not captured by the Liability Data Template will be requested from banks via the NRAs in due course.
Final update of the guidance on the Liability Data Template
Following the publication of the Liability Data template on the 22 February, the SRB got a series of questions from the banking industry. This updated version of the guidance aims to clarify the expectations of the SRB.