EBA · 2019_4642 Rejected question

Resolution plans for subsidiaries where no resolution college has been established yet

Regulation
Directive 2014/59/EU (BRRD)
Article
12
Topic
Resolution plans
Submitted by
Resolution authority
Submitted
2019-04-01
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Question

Is the national resolution authority empowered to draft an individual resolution plan, referred to in Article 10 BRRD, for an institution which is part of a (third country) group subject to consolidated supervision, where the European group-level resolution authority (GLRA) has not established the European resolution college?

Background

In line with Article 12 BRRD subsidiaries that are part of the group should be covered by group resolution plan adopted in the form of joint decision. To avoid overlaps the regulator included in Article 10 restriction that obligation for NRAs to draw up individual resolution plans does not refer to the abovementioned subsidiaries. Simultaneously BRRD in Articles 88 and 89 stipulates that group resolution plans are subject to joint decision which is taken within resolution college or – in case of banking groups where the ultimate parent undertaking is registered in a third country – European resolution college. In some cases process of establishing European resolution colleges is delayed and consequently for some institutions there have been drafted no resolution plans so far. As one of the elements of resolution planning process is determination of MREL lack of adopted resolution plan not only puts into question possibility of carrying out resolution process in efficient way but also breaches level playing field principle.
No answer published yet.

Original source: European Banking Authority, Q&A ID 2019_4642

This Q&A is published by European Banking Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.

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