The SRB and the European Central Bank (ECB) have reached an “in principle” agreement on the margin for redeeming eligible liabilities under Article 78a(1)(b) of Regulation (EU) No 575/2013 (CRR). The new “in principle” agreement is applicable to authorisations granted as of 1 January 2023, including General Prior Permission (GPP) renewals.
To redeem eligible liabilities institutions need to demonstrate that they would meet their Minimum Requirement for Own Funds and Eligible Liabilities (MREL) and the Combined Buffer Requirement plus a margin after the transaction has been performed. The margin is set by the resolution authority in agreement with the relevant competent authority.
The SRB has reached an “in principle” agreement with the ECB on the margin that institutions will have to comply with in order to be authorised to redeem eligible liabilities. The margin will be set at the lower value of either the requested GPP predetermined amount or the institution’s Pillar 2 Guidance. Nonetheless, a different margin may be set depending on the circumstances of the case. This applies for institutions under the supervision of the ECB.
SRB approach to prior permissions regime
Contact our communications team
The SRB has published its Resolution Planning Cycle Booklet for 2023.
Resolution planning is about being prepared to deal with failing banks in a...
This note is aimed at reporting to the Eurogroup of 15 May 2023 on:
- resolvability progress of SRB banks;
- the Single Resolution Fund (SRF) and...
The Single Resolution Board is pleased to invite media representatives to its annual press breakfast in Brussels, on the 25 April. The event will be...