Category: Recovery and Resolution Plans
Cyprus Bail-Out Highlights Risk of Bail-In
Here is a link to an interesting FT article regarding recent developments on the subject of bail-in. As the dust settles on the bail-out of Cypriot banks, attention is returning to the way in which bail-in will operate in the future. Investors are rightly looking at factoring bail-in risk into the price of bank debt, […]
RRD to be finalised in Q2 2013
On 15 March 2013, the EU Council published the conclusions of its meeting held on 14 to 15 March. Among the many issues discussed, the following are particularly relevant to the banking sector: finalisation of the legislative process on the Single Supervisory Mechanism within the coming weeks is a priority; agreement of the Bank Recovery […]
RRD to have First Reading in EU Parliament in September 2013
The EU Parliament has updated its procedure file on the RRD. It now appears that the first reading of the RRD proposals will take place at the plenary session due to be held between 9 to 12 September 2013. Previously, it had been indicated that the Parliament would consider the RRD at is plenary session scheduled […]
EBA Publishes Consultation Paper on draft RTS on recovery plans
Introduction On 11 March 2013, the European Banking Authority (EBA) published a consultation paper concerning “Draft Regulatory Technical Standards (RTS) on the content of recovery plans under the draft directive establishing a framework for the recovery and resolution of credit institutions and investment firms” (RRD). The draft RTS have been developed pursuant to Articles 5(7) […]
EU Commission Publishes Summary of Responses to Non-Bank RRP Consultation
Introduction On 8 March 2013, the EU Commission published a summary of the responses (67 in total) it received to its October 2012 consultation on a possible recovery and resolution framework for financial institutions other than banks. There is also a set of links to individual responses. The summary addresses views expressed on the three […]
ECB Questions the Point of Non-Viability Under the RRD
The opinion of the European Central Bank (“ECB”) (dated 29 November 2012) on the proposed directive establishing a framework for recovery and resolution of credit institutions and investment firms (the “RRD”) was recently published in the Official Journal of the EU. The opinion addressed a number of issues under the RRD and suggested various amendments […]
EU Shying Away from Annual Updates of RRP?
Introduction On 28 February 2013, the Presidency of the EU Council published a compromise proposal (dated 15 January 2013) relating to the proposed directive establishing a framework for the recovery and resolution of credit institutions and investment firms (the “RRD”). The compromise proposal makes a large number of suggested changes to the text of the […]
EU Parliament Finalises Opinion on RRD
On 25 February 2013, the EU Parliament’s Committee on Legal Affairs published its final opinion proposing certain amendments to ‘proposal for a Directive of the European Parliament and of the Council establishing a framework for the recovery and resolution of credit institutions and investment firms’ (the “RRD”). This is a follow up to the draft […]
Heat Turned Up Over US Living Wills
In a sign that the political tide may be turning, the FT is reporting that the Federal Reserve and the Federal Deposit Insurance Corporation have raised the prospect of taking severe action against banks that submit deficient living wills, including increased capital requirements or even forced break-ups. Whereas previously, it was accepted that RRP was […]
Liikanen, Non-bank RRP and SRM Rules Expected in H2
On 27 February 2013, the European Commission published an updated summary of the legislative and non-legislative proposals it expects to adopt between 21 February and 31 December 2013. Among the legislative acts expected to be adopted are a: Directive/Regulation on the reform of the structure of EU banks (i.e. Liikanen), expected in Q3 2013; Framework […]