UK Regulators Finalize Resolvability Assessment Framework for Banks
07/30/2019Following their consultation earlier this year, the Bank of England and the Prudential Regulation Authority have finalized the new Resolvability Assessment Framework. The Framework comprises: (i) the BoE's approach to assessing resolvability, which includes the outcomes that the BoE considers necessary to support resolution; (ii) new PRA rules that require firms to assess their resolvability, submit a report to the PRA on the assessment and publish a summary statement on the assessment; and (iii) the BoE making public statements on the resolvability of each individual firm that is in-scope of the PRA's new rules.
The PRA rules apply to U.K. banks and building societies with £50 billion or more in retail deposits on an individual or consolidated basis. The BoE's statements on resolvability will apply to all firms in-scope of the PRA's rules. The BoE's approach to resolvability applies to all firms with bail-in or partial-transfer resolution strategies and material U.K. subsidiaries of an overseas-based banking group.
The BoE has published a Policy Statement that sets out a summary of the responses to its proposals and the final policy adopted. The following final Statements of Policy are appended to the Policy Statement:
- Statement of Policy: The Bank of England's Approach to Assessing Resolvability
- The Bank of England's Statement of Policy on Funding in Resolution
- The Bank of England's Statement of Policy on Continuity of Access to Financial Market Infrastructure
- The Bank of England's Statement of Policy on Restructuring Planning
- The Bank of England's Statement of Policy on Management, Governance and Communication
The Prudential Regulation Authority has published a Policy Statement that sets out its responses to feedback received and final policy as well as final resolvability assessment rules and a Supervisory Statement on the PRA's expectations on how firms should comply with the new rules.
View the BoE's Policy Statement and its appendices.
View the PRA's Policy Statement and its appendices.
View details of the consultation package.
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