Single Resolution Board publishes 2017 Conference Report

On 29th September 2017, the Single Resolution Board (SRB) held its second annual conference in Brussels. “Building Resolvability Together” brought together international panellists to discuss progress made in establishing banking resolution planning and preparedness. While attesting to the SRB’s successful efforts thus far, the day’s discussions also revealed hurdles remaining in the journey beyond “too big to fail”.

Held exactly 17 months after the SRB’s debut 2016 event, this year’s Conference came on the heels of a significant step in the SRB’s short history of crisis management: In June 2017, the SRB adopted a resolution decision for a failing entity — Banco Popular Español S.A. (Banco Popular). Done within the framework of the Bank Recovery and Resolution Directive (BRRD) and the Single Resolution Mechanism Regulation (SRM), the act preserved financial stability and ensured the continuity of critical functions in Spain and beyond.

The day’s discussions touched on many areas of potential improvement, including, among others: alignment of Minimum Requirement for own funds and Eligible Liabilities (MREL) and Total Loss-Absorbing Capacity (TLAC); the level of flexibility demanded of the BRDD; challenges in setting up Crisis Management Groups (CMGs); the establishment of the third pillar of the Banking Union, the European Deposit Insurance Scheme (EDIS); and recovery and resolution of Central Counterparties (CCPs). International challenges, including in the context of “the B word” – Brexit – were also a topic.

With its diverse participants, varied views, and lively discussions, the 29th September conference marked yet another productive step forward in the journey towards resolvability.