Recovery, resolution and DGS

Under the Bank Recovery and Resolution Directive (BRRD) on crisis prevention, management and resolution, the EBA is mandated  to develop a wide range of Technical Standards, Guidelines and Reports with the aim of ensuring effective and consistent procedures across the Union, in particular with respect to cross-border financial institutions. The ultimate objective of the BRRD framework is to enhance financial stability, reduce moral hazard, protect depositors and critical financial services, save public money and ensure the smooth functioning of the internal market for financial services. The BRRD is complemented by the Deposit Guarantee Scheme Directive (DGSD), which also assigns rulemaking tasks to the EBA, and by other forthcoming regulatory initiatives on financial institutions other than banks. The DGSD aims to facilitate access to the internal market through the freedom of establishment and the freedom to provide financial services while increasing the stability of the banking system and the protection of depositors.
To fulfil its role of monitoring the implementation of the BRRD and the DGSD, national authorities must notify the EBA of any relevant information as well as of any actions taken. The EBA publishes the non-confidential elements of these notifications on its website (i.e. notifications on resolution, liquidation cases with DGS payouts and other DGS interventions), which can be accessed here. Similarly, Member States must periodically report to the EBA data relating to the funding levels of their national Deposit Guarantee Schemes.


Technical Standards, Guidelines & Recommendations

  • Regulatory Technical Standards on valuation

    These draft Regulatory Technical Standards (RTS) aim to provide a common structure to decisions made by resolution authorities and independent valuers. They are intended to promote the consistent application of methodologies for valuations across the Union, giving a common structure to the decisions of resolution authorities. However, they do not seek to provide detailed valuation rules for particular types of asset or liability, but to specify the principles on the basis of which the valuer must apply their own information and expertise in particular cases.

    Status: Adopted and published in the Official Journal

  • Regulatory Technical Standards on Simplified Obligations

    These Regulatory Technical Standards further specify the eligibility criteria to determine whether institutions should be subject to simplified obligations when drafting their recovery and resolution plans.

    Status: Adopted and published in the Official Journal

  • Recommendations on the coverage of entities in a group recovery plan

    These draft recommendations are aimed at defining common criteria to identify entities that need to be covered in group recovery plans, and at providing a common guidance for the extent of such coverage.

    Status: Final and translated into the EU official languages

  • ITS on MREL reporting by Resolution Authorities

    These standards will enable the EBA to monitor on a consistent basis the implementation of MREL across the Union.

    Status: Final draft adopted by the EBA and submitted to the European Commission

Opinions, Reports and other Publications



Other Publications

  • Draft Valuation Handbook for purposes of Resolution- Draft Chapter on Management Information Systems
    The Draft Chapter on Management Information Systems (MIS) replaces the textbox included in the original Chapter 10 of the Handbook on Valuation for purposes of resolution (‘Handbook') published on 22 February 2019. The draft MIS Chapter is, therefore, an integral part of the Handbook and it lays down an approach towards the resolution authorities' assessment of the institutions' building-up of Management Information Systems for the collection and provision of data and information supporting a robust valuation (‘resolution valuation MIS') in case of resolution. Such an approach includes also a draft data dictionary for benchmarking purposes and the related explanatory note, as well as a summary table combining valuation methodologies and data and information needs.
    The EBA approach envisages the resolution valuation MIS as a combination of the institutions' internal valuation capabilities and the Data Dictionary for benchmarking purposes. The draft data dictionary does not introduce any reporting requirements but is expected to be used by Resolution Authorities to assess institutions' data availability in the resolution planning phase.
    The draft MIS Chapter, like the whole Handbook, is addressed to EU and national resolution authorities, and whilst it is not binding and not subject to comply/explain, it aims at fostering the convergence of resolution practices across the EU to ensure a level playing field. The Draft MIS Chapter is published to allow interaction with valuers and key stakeholders.
    .... Read more 26/07/2019
  • Valuation Handbook
    The European Banking Authority (EBA) published today a Handbook on valuation for purposes of resolution. The Handbook, which is addressed to national and EU resolution authorities, aims at fostering the convergence and consistency of valuation practices as well as the interaction with independent valuers across the EU.... Read more
  • Draft Handbook on valuation for purposes of resolution
    The Draft Handbook on valuation for purposes of resolution aims at making the valuation process operational in accordance with Commission Delegated Regulation EU N. 2018/344 and Commission Delegated Regulation EU N. 2018/345. It covers the valuations before resolution, namely ‘valuation 1' - aimed at establishing whether the conditions for resolution are met - and ‘valuation 2' - aimed at informing the decision on the application of the resolution tools, including the extent of the write down and conversion of capital instruments. It also covers ‘valuation 3', the valuation to be performed after the execution of the resolution action in order to assess whether shareholders and creditors have suffered in resolution greater losses had the bank been put in normal insolvency proceedings. In addition, by indicating potential elements of the valuation report it is meant to support resolution authorities' expectations in respect of the valuation results.
    The Handbook is addressed to EU resolution authorities. Whilst it is not binding and not subject to comply/explain, it is aimed at fostering convergence of practices in supporting the valuation process and the interaction with valuers. The Draft Handbook is published to allow interaction with valuers and key stakeholders.
    .... Read more