EBA欧洲银行-EBA-Report-on-the-Application-of-Simplified-Obligations-and-Waivers-in-Recovery-and-Resolution-Planning_91页_2mb

Summary of the Report on the Application of Simplified Obligations and Waivers in Recovery and Resolution Planning

Core Content

This report, issued by the European Banking Authority (EBA) in December 2017, provides an analysis of how competent and resolution authorities have applied the simplified obligations and waivers under the Bank Recovery and Resolution Directive (BRRD) in the first years following its implementation in January 2015. The report is based on data submitted by these authorities during two reporting periods: the first from 1 January 2015 to 30 April 2016, and the second from 1 May 2016 to 30 April 2017.

Main Objectives

• To assess the application of simplified obligations and waivers by competent and resolution authorities.
• To identify divergences in the implementation of these provisions across the European Union.
• To evaluate the methodology and indicators used for eligibility assessment.
• To provide a basis for possible future amendments to increase convergence and harmonization.

Main Findings

Application of Simplified Obligations and Waivers

• By 30 April 2017, approximately half of competent and resolution authorities had applied simplified obligations or waivers to institutions under their jurisdiction.
• Some authorities opted to apply full BRRD requirements, while others delayed decisions due to late transposition of the BRRD into national legal frameworks or delays in implementation.
• There was significant variation in the percentage of credit institutions subject to full-scope BRRD requirements, ranging from 1% to 91% for recovery planning and from 1% to 99.6% for resolution planning.

Eligibility Assessment

• Competent and resolution authorities used a range of methodologies and indicators to assess eligibility for simplified obligations, based on the criteria outlined in Article 4(1) of the BRRD.
• These criteria include: size, interconnectedness, complexity of activities, risk profile, nature of business, shareholding structure, legal form, and membership of an institutional protection scheme (IPS).
• The EBA guidelines provided obligatory and optional indicators for each criterion, but did not specify a weighted methodology for assessing them.

Scope of Simplifications

• Authorities had flexibility in determining the scope of simplifications for recovery and resolution planning.
• The scope varied across Member States, with some applying reduced requirements in terms of content, detail, and frequency of plan updates.
• There is no EU-wide harmonized framework for defining the scope of simplifications, leading to divergences in practice.

Reporting Practices

• The EBA required competent and resolution authorities to report data on the application of simplified obligations and waivers.
• In the first reporting period, data submissions were less complete, while in the second reporting period, data were more comprehensive.
• Some authorities submitted data on a per-institution basis, while others used category-based reporting, which limited the EBA’s ability to compare values across the EU.

Key Views and Recommendations

• The EBA's guidelines and implementing technical standards (ITS) aimed to promote convergence in the assessment of eligibility for simplified obligations.
• The final draft of the EBA regulatory technical standards (RTS) on simplified obligations is expected to increase harmonization.
• The report highlights the need for further alignment across the EU to ensure consistent application of the principle of proportionality in recovery and resolution planning.

Next Steps

• The EBA will submit this report to the European Parliament, the Council, and the Commission by 31 December 2017 for consideration of possible amendments to the BRRD.
• The report will serve as a basis for future regulatory developments and harmonization efforts.

Key Definitions

Conclusion

The report indicates that while the BRRD provides a flexible framework for the application of simplified obligations and waivers, there is still a lack of harmonization across the EU. The EBA’s role in promoting convergence is critical, and the development of the final draft of the RTS is expected to address these discrepancies. The findings underscore the importance of consistent application of the principle of proportionality to ensure financial stability and minimize administrative burdens on institutions and authorities.