Cross-Border Cooperation. Denada Prifti SRB - Resolution Planning and Decisions, Head of Unit

Transcription

1 Cross-Border Cooperation Denada Prifti SRB - Resolution Planning and Decisions, Head of Unit 19 April 2017

2 Content 1 European banks operations 2 Resolution Colleges at a Glance 3 CMG vs. RC 4 Resolution planning 2 l Cross border cooperation

3 1. European bank s operations European banks operations Largely operate cross-border With nonparticipating Member States authorities With third countries SRB shall conclude Memoranda of Understanding (MoUs) with supervisors and resolution authorities. SRM Regulation envisages 2 types of MoUs: 1) MoUs between SRB, ECB, National Resolution Authorities (NRAs) and National Supervisory Authorities (NCAs) of non-participating member states. 2) MoUs between SRB and NRAs that are home to at least one G-SIFI, i.e. currently the UK and Sweden (done). The SRB shall conclude Cooperation Arrangements in line with the EBA framework. On top of these MoUs, the BRRD has also set up another layer of cooperation with Resolution Colleges. Cross-border cooperation 26 RCs organized by SRB Joint Decisions Confidentiality Regime Stage Legal basis Supervision Resolution Tasks Global FSB Key Attributes Crisis Management Groups (CMG) EU-28 CRD IV / BRRD Supervisory Colleges Resolution Colleges Coordination & Information sharing Decision making bodies Banking Union SSM-R / SRM-R Joint Supervisory Teams Internal Resolution Teams Coordinating bodies 3 l Cross border cooperation

4 2. Resolution Colleges at a Glance Group Level Resolution Authorities (GLRAs) need to set up Resolution Colleges (RCs) when a parent undertaking established in the EU has at least one subsidiary in a participating Member State (MS) and another one in a nonparticipating Member States Group RP & Resolvability Assessment MREL Joint Decision In case of significant branch(es) only in a nonparticipating MS, increased cooperation rather than a formal college (as no participation JD) RC: 2 decisions per year Joint Decision Parties Group-level Resolution Authority (Chair) RA of MS where a parent of one or more institutions of the group are established RA of MS in which a subsidiary covered by consolidated supervision is established CA: Competent Authority DGS: Deposit Guarantee Scheme MS: Member State(s) RA: Resolution Authority RC Non-voting members RA of MS in which significant branches are located Consolidating supervisor and CA of MS where the RA is a member of the ResCol Competent ministries Authority responsible for DGS EBA RA of third countries (where a parent or an institution established in the union has a significant subsidiary or branch) as observers 4 l Cross border cooperation

5 3. CMG vs. RC: Structures Example of the usual group structure: parent in the Banking Union (G-SIB) Sub/sign. third country, e.g. US Sub/sign. Branches in BU Parent in BU IRT Sub/sign EU, but non BU RC CMG 5 l Cross border cooperation

6 3. CMG vs. RC: Structures Example of complex group structure Third country parent Sub/sign. non BU FHC or consolidating subsidiary in EU Sub/sign. BU Sub/sign non BU RC CMG 6 l Cross border cooperation

7 4. Resolution planning: Achievements and Objectives SRB Resolution planning is a multi-year process, not a product Conducted initial MREL assessment Hosted / Participated in Resolution Colleges and CMGs Raised contributions to the Single Resolution Fund Decisions on resolution plans (almost finalised) Conducted Resolvability Assessment Process (RAP) and drafted resolution plans First cycle of resolution plans almost finalised Other achievements Better understanding of banking groups enables us to ask the right questions and operationalise resolution strategies Published Resolution Planning Manual Developed horizontal policies and data collection templates Conducted industry meetings and workshops with banks 7 l Cross border cooperation

8 4. Cross border issues Cooperation & Cross-border relationships Information Information exchange Information about the group Article 84 BRRD: The assessment of the equivalence of the confidentiality regime of the third country authority need to be performed. The SRB did not yet perform the equivalence checks and a short term solution was to ask the authorities to sign a confidentiality agreement Decision making No voting rights in the joint decission Status as observer Enforceability Resolution strategy; Resolution action at the parent company Real case? 8 l Cross border cooperation

9 Thank you!