Single Resolution Board publishes its new bail-in template for banks

• The template has been designed to facilitate the execution of a bail-in decision should a bank fail, or for use in testing exercises;

• It was produced following a public consultation earlier this year, and banks have 12 to 18 months to put it in place as part of their bail-in preparation.

The SRB has published today the minimum bail-in data template (MBDT) package, which provides an integrated approach for implementing its bail-in operational guidance, by enhancing its definitions and providing a template to ensure structured and standardised data collection. It also includes country-specific fields, as national resolution authorities are responsible for implementing the SRB bail-in decisions at national level.

Bail-in is a key resolution tool in a banking crisis, used to absorb losses and recapitalise failing banks, rather than the burden falling on the taxpayer. It allows the write-down of debt owed by a bank to creditors or its conversion into equity to absorb losses and stabilise the bank. The MBDT template, which includes guidance and a first set of validation rules, ensures that the information necessary for implementing a bail-in decision is available for use in a bank failure, for resolution planning and for testing. It is part of the SRB’s strategic shift to ensuring all resolution tools are fully operational in a crisis.

Banks have 12 months to adapt to these requirements, with an additional six months for some elements (see more details here).

The SRB conducted a public consultation on the documents between 13 March 2024 and 15 May 2024, and has published a feedback statement on how comments received were addressed.