Adequate liquidity and funding arrangements are key to the successful implementation of resolution actions. The Single Resolution Board has published three Operational Guidance documents laying down its expectations on how banks should achieve resolvability in this field. They expect banks to develop capabilities i) to estimate their liquidity and funding needs in resolution, ii) to measure and report their liquidity situation in resolution and iii) to identify and mobilise collateral in resolution. To demonstrate compliance with these expectations, banks were expected to prepare deliverables or to test certain capabilities (e.g., Joint Liquidity Exercises).
Past banking crises, outcomes of SRB resolvability assessments and recent policy developments have shown the need for targeted enhancement of this guidance. In particular, risk of liquidity outflows has proven to be much faster than had previously been considered.
To ensure crisis readiness, the SRB is updating, and merging into a single document, its Operational Guidance on liquidity and funding in resolution. The proposed Operational Guidance updates the methodological assumptions banks should use to estimate liquidity and funding needs, including the duration of the fast-moving scenario. It also includes details on expectations for governance arrangements for the measurement and reporting of the bank’s liquidity situation, and on the granularity of collateral-related information.
This update of the SRB Operational Guidance does not introduce new deliverables for banks. It provides clarifications and optional templates that banks can use to demonstrate compliance with expectations. In addition, the update provides for a proportionate approach to the implementation of these expectations, notably for banks for which a Multiple Point of Entry resolution strategy has been identified.
The SRB is consulting the banking industry and other relevant stakeholders on its Operational Guidance on liquidity and funding in resolution, as well as on the KLE & KLD identification template and Collateral template. The consultation is part of the SRB’s engagement with industry and allows stakeholders to take part by filling in the online questionnaire. The SRB invites representatives from the banking sector and the general public to comment on all proposals and, in particular, on the specific questions, by 06 July 2026.
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