The EBA issues new guidelines for resolvability

The European Banking Authority (EBA) has given institutions and authorities a 2024 deadline for new resolvability guidelines.

The EBA has published its final guidelines for institutions and resolution authorities on improving banks’ resolvability. These guidelines are part of its effort to complement the EU framework around resolution based on international standards and leveraging on EU best practices.

Additionally, the EBA launched its consultation paper on guidelines for institutions and resolution authorities on transferability assessment for transfer strategies. In particular, the guidelines around separability in the context of the application of transfer tools.

The consultation runs until 15 April 2022.

The resolvability guidelines set-out requirements to improve resolvability in the areas of operational continuity in resolution, access to financial market infrastructure, funding and liquidity in resolution, bail-in execution, business reorganisation and communication.

They address both authorities and institutions in the EU to ensure consistent progress and nurture resolvability work for cross-border groups and its monitoring in resolution colleges.

Institutions and authorities have been given a 1 January 2024 deadline for compliance.

As for the draft on transferability guidelines, it aims at assessing the feasibility and credibility of transfer strategies and encompass requirements relating to the implementation of transfer tools when considered as the preferred or alternative strategies for institutions.

Transferability is defined by the EBA as the elements of resolvability that will facilitate the transfer of an entity, a business line or a portfolio of assets, rights and/or liabilities to an acquirer, a bridge institution, or an asset management company.

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