Brrd - Noose Paper

Brrd - Noose Paper

Brrd - Noose Paper

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The European Banking Authority (EBA) today published the results of its targeted Peer Review on the supervision of compliance with the Capital Requirements Regulation (CRR) and the Bank Recovery and Resolution Directive (BRRD) provisions aiming to facilitate market discipline through bank disclosure (“Pillar 3”). The Review found that the competent authorities under review have fully or largely embedded Pillar 3 requirements into their supervisory frameworks and that their practices are efficient overall. Consistency across jurisdictions could, however, improve. Scope of the Review The peer review assessed supervisory performance across four key areas between 1 June 2023 to 30 June 2025: * Integration of Pillar 3 requirements into supervisory frameworks, including manuals, methodologies, and internal guidance; * Effectiveness of supervisory arrangements for reviewing institutions’ disclosures and related governance frameworks, including internal processes and controls; * Robustness of processes used to assess institutions’ Pillar 3 disclosures, including selected disclosure templates; * Supervision and enforcement of institutions’ compliance with Pillar 3 requirements, including measures taken to address deficiencies. Key Findings Most competent authorities have fully or largely embedded Pillar 3 requirements into their supervisory frameworks, demonstrating a high degree of convergence across the EU. Four authorities were identified as having implemented these requirements to a very high standard, reflecting advanced supervisory practices and implementation of the relevant legal provisions. However, some differences remain: * One authority was rated “partially applied” across all benchmarks. While gaps were identified, corrective actions are already underway to strengthen supervisory tools and processes; * Another authority received mostly “not applied” ratings, due to the absence of formal methodologies and processes to systematically assess compliance. This reflects its view that Pillar 3 non-compliance poses limited financial stability risks, warranting lower supervisory prioritisation. Notes to editors EBA peer reviews assess and compare how competent authorities implement and supervise EU regulatory requirements and the effectiveness of their supervisory practices. They aim to strengthen consistency of supervisory outcomes across the EU and to promote convergence by identifying best practices, gaps and areas for improvement. Peer reviews may also lead to follow‑up measures, including recommendations, to enhance supervisory effectiveness. Documents Peer review Report on Pillar 3 Disclosures (1.17 MB - PDF) Related content Page Peer Reviews Topic Transparency and Pillar 3

The European Banking Authority (EBA) today published its Q4 2024 semi-annual Dashboard on the minimum requirement for own funds and eligible liabilities (MREL), which discloses aggregated statistical information for 345 banks earmarked for resolution across the European Union (EU) and for which the EBA has received data about both decisions and resources. All in all, banks meet their MREL requirements in line with the Bank Recovery and Resolution Directive (BRRD) deadline of 1 January 2024, as shortfalls are reported only by a few banks, mostly in their transition period towards future requirements. The amount of instruments becoming ineligible over the next year for the sample reached EUR 242bn. As of 31 December 2024, most banks met their MREL, including the combined buffer requirement (CBR). Only a small number of banks, mostly in their transitioning towards their final MREL targets, reported a shortfall, totalling EUR 2.3bn (or 2.1% of their combined risk-weighted assets). Banks in the sample reported EUR 242bn of MREL instruments that will become ineligible by the end of December 2025 due to their residual maturity falling below one year. These account for around 20% of MREL eligible instruments other than own funds. Bail-in strategies continue to be the preferred option in terms of RWAs (94%), whereas in terms of number of decisions, bail-in and transfer strategies rank on the same level (50% each). This reflects the fact that transfer strategies are favoured for smaller banks, while bail-in is the preferred option for the larger ones. More details on MREL roll over needs are covered in the Spring and Autumn editions of the EBA Risk Assessment Report. Background The EBA is mandated by the BRRD to monitor the setting of MREL by authorities and the build-up of related resources by institutions. MREL is the requirement that ensures that relevant EU institutions have sufficient loss absorbing capacity to support the execution of the preferred resolution strategy in case of failure. The BRRD set 1 January 2024 as a deadline to meet MREL requirements except for those banks that recently changed resolution strategy, or those eligible for an extension in accordance with Art.45m of the BRRD. Furter details on the transition period are provided in the EBA European Resolution Examination Programme (EREP). Discrepancies between the MREL Dashboard and the EREP MREL monitoring may reflect different reference dates. While the EREP is based on 2024 decisions only, the MREL Dashboard includes decisions in force as of 1 May 2025.     Documents MREL Dashboard - Q4 2024 (1.06 MB - PDF) Related content Page MREL dashboard

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Finanstilsynet har i dag sendt udkast til ændringer til bekendtgørelse om krav til nedskrivningsegnede passiver, jf. bekendtgørelse nr. 7 af 9. januar 2025, i offentlig høring. Det påtænkes at foretage forskellige lovtekniske ændringer og konsekvensrettelser efter (forventet) vedtagelse af ny lovgivning. Dertil kommer nogle få ændringer, som udspringer af BRRD II-direktivet, og som alene har betydning for finansielle koncerner, der er bygget op omkring et centralt organ, og som ikke findes i Danmark. Det forventes, at bekendtgørelsen nyudstedes med de påtænkte ændringer og træder i kraft den 1. juli 2025. Der henvises til høringsbrevet for en mere detaljeret beskrivelse af ændringerne og baggrunden herfor. Finanstilsynet vil venligst anmode om at modtage eventuelle bemærkninger til bekendtgørelsesudkastet senest fredag, den 30. maj 2025. Bemærkninger bedes venligst sendt pr. e-mail til mras@ftnet.dk med angivelse af j.nr. 25-012504 i mailens emnefelt eller med almindelig post til Finanstilsynet, Strandgade 29, 1401 København K, att.: Marco Vincent Flor Rasmussen. Eventuelle høringssvar vil blive offentliggjort her på Høringsportalen.