Operational guidance for banks regarding resolvability self-assessment
Single Resolution Board (SRB)The Single Resolution Board (SRB) has launched a public consultation on its operational guidance for banks' resolvability self-assessments as part of the SRM Vision 2028 strategy. The consultation introduces an annual template to standardize and improve resolvability assessments.
Operational guidance for banks regarding resolvability self-assessment
Executive summary
The SRB has launched a public consultation on operational guidance for banks to self-assess their own resolvability. The consultation, which is part of the SRM Vision 2028 strategy, focuses on a self-assessment template to be completed by banks on an annual basis, and aims to enhance clarity and consistency and ensure a level playing field in the assessment of resolvability across the sector. The consultation closes on February 7, 2025.
Main content
- Scope of application. This guidance applies to banks under the SRB’s jurisdiction that are subject to resolution. Each entity within a banking unit must assess resolvability at the resolution group level. For multiple point of entry (MPE) strategies, self-assessment must be conducted on a group basis. Where there is a single ultimate parent, the self-assessment must be centralized and submitted by the ultimate parent to ensure a unified approach.
- Testing and identification of impediments. The SRB evaluates banks’ resolvability with support from Internal Resolution Teams (IRT), considering legal frameworks, Expectations for Banks (EfB), self-assessments, and the specific characteristics of each bank. The IRT determine the necessary tests to validate capabilities and define actions based on the level of compliance, prioritizing impacts on resolution strategies.
- Self-assessment template. Annex II provides a template to structure self-assessment in line with European Banking Authority (EBA) guidelines. The template covers seven key dimensions: governance, loss absorption and recapitalization capacity, liquidity and funding, operational continuity, management information systems, communication, and separability and restructuring.
- Evaluation methodology. The evaluation is based on a four-point scale: compliant (full application), largely compliant (minor deficiencies), materially non-compliant (significant deficiencies), and non-compliant (severe issues or lack of application). This methodology identifies progress levels and areas requiring improvement.
Download the technical note on the Operational guidance for banks regarding resolvability self-assessment.