Tag: BRRD
RRP: Shining a Light on Financial Contracts
Introduction As a firm, do you know the detailed contents of your portfolios of derivatives and securities financing contracts? The Bank of England[1] wants to know, and will soon have the power to compel you to provide this information. The Bank Recovery and Resolution Directive (“BRRD”) mandates competent authorities of Member States to require an […]
PRA cranks up the printing press
The PRA has published four papers, three consultations and one discussion, as part of the PRA’s wider “resolution and resilience agenda”. The implementation of ring-fencing: consultation on legal structure, governance and the continuity services and facilities- CP19\14 sets out the PRA’s proposed ring-fencing policy in three areas: the legal structure of banking groups, governance, and […]
FSB sketches out cross-border resolution
The FSB has released a consultation paper on the cross-border recognition of resolution action. The FSB TBTF report previously identified cross-border legal uncertainty as one of the main stumbling-blocks to the effective resolution of a SIFI subject to multiple jurisdictions. Key Attribute (KA) 7.5 mandates the mutual cross-border recognition of resolution authority and action; existing […]
Resolution Planning (nearly) resolved
The EBA has released the draft RTS on the content of resolution plans and resolvability assessment and a draft set of guidelines on measures to reduce impediments to resolution. Articles 10, 12 and 15 BRRD (Directive 2014/59/EU) mandate the EBA to draft RTS that impose common European standards, facilitating harmonisation between resolution authorities. The draft […]
EU OJ printing press runs red-hot
The Official Journal of the EU was thicker than usual yesterday (12 June 2014) with the publication of a number of landmark regulations. In addition to MiFID II/MiFIR, the daily publication also gave notice of the following legislation’s entry into force: The Bank Recovery and Resolution Directive (2014/59/EU). The BRRD enters into force on 3 […]
EU Financial Services Reform Gets Final Nod
On 24 April 2014, the EU Council published information notes regarding the outcome of the EU Parliament’s vote on 15 April 2014 on MiFID II, the Single Resolution Mechanism and the Bank Recovery and Resolution Directive. In all cases, the Council has concluded that the Parliament’s position reflects what has previously been agreed with the […]
EU Banking Reform: unity is strength?
At its last plenary session before electoral recess, the European Parliament has passed three laws cementing the foundations of an EU-wide banking union. The Single Resolution Mechanism, passed by 770 to 88 with 13 abstentions, limits the contentious role of national governments, resolutions will be triggered by an ECB-led decision, effective as of 1st January […]
EU Parliament Publishes Amended BRRD Text
On 8 April 2014, just days before its final plenary session (scheduled for 14-17 April) the EU Parliament has published a revised text of the Bank Recovery and Resolution Directive (BRRD). The text appears to confirm the Parliament’s broad support of the requests made by various Member States for clarity that the extension of liquidity […]
Last Minute Loss of Nerve Over TBTF?
The FT is reporting that a stand-off has developed over the EU bank recovery and resolution directive. The issue relates to the degree of support that a state can provide to an ailing bank before triggering the bail-in provisions of the directive.
BRRD rubber-stamp delayed
The European parliament has updated its BRRD procedure file, postponing the plenary consideration of the proposal to its 14-17th April session. The regulatory framework has been agreed, however the plenary vote is a very necessary formality. Any further delay would place this cornerstone of EU banking reform perilously close to the 22nd May EU election.