The Single Resolution Board (SRB) launched a public consultation on 23rd October 2019 outlining its expectation for banks, this consultation seeks to provide best practice and guidelines on key aspects of resolvability including a bank’s capability to demonstrate resolvability and its preparations for crisis management.
The SRB publication of expectations for banks details seven dimensions which banks must meet to be considered resolvable. These include:
- Loss Absorption and recapitalisation capacity
- Liquidity and funding resolution
- Operational continuity and access to FMIs
- Information systems and data requirements
- Separability and restructuring.
Read this paper to discover the challenges, impact and key requirements for banks.