EBA-consultation on resolution planning

On 30 July 2024, the European Banking Authority (EBA) launched a public consultation on its new Implementing Technical Standards (ITS) on the provision of institutional-related information for the purposes of resolution planning (EBA/CP/2024/18). The EBA would like to further develop the current reporting requirements in line with the EU strategy for supervisory data in the financial services sector, with which DG FISMA has been promoting the modernisation of the banking supervisory reporting system since 2021. It aims to make the reporting procedure simpler and more consistent. In addition, the EBA is processing the most recent learnings from the resolution of institutions, particularly in Switzerland and in the US. 

Among other things, the EBA wants to expand the scope of reporting on the structure of liabilities held by an institution. In doing so, it will take into account the SRB’s ongoing considerations with regard to eligible liabilities (MREL). The EBA also wants to be able to assess the criticality of certain economic functions performed by the institutions and require additional data accordingly. The institutions will also be required to indicate which financial market infrastructures (FMIs) and/or services could be relevant in terms of business continuity in the event of resolution and should therefore be integrated into the reporting system.    

We have submitted comments on the EBA’s consultation on draft ITS and are requesting clarification on selected technical aspects of the reporting requirements. Overall, we recognise that the EBA is following the principles of proportionality with its proposals. However, we are critical of the notion that small and medium-sized institutions which, according to the national resolution authorities, qualify as insolvency institutions but are not subject to the simplified requirements should nevertheless be required to provide blanket information on resolution planning.