As part of its simplification strategy, the Single Resolution Board (SRB) will apply, from Wednesday 1 July, a procedure to authorise, within a maximum period of one month, early redemptions (‘prior permissions’) of eligible liabilities instruments.
In 2025, the European authority responsible for the resolution of major European banks received around 150 prior permission requests, none of which raised any major concerns from a bank resolution perspective.
As part of the ongoing reflection on the competitiveness of the European banking sector (see EUROPE 13894/18), it recommends more risk-based and more targeted framework, under which ex ante authorisations would be required only where the bank has a shortfall in relation to the requirements for MREL-eligible assets that can be mobilised in bank resolution, or where the bank does not comply with a own funds requirement.
2025 report. In its annual report, published on Tuesday 30 June, the SRB says it put in place in 2025 a comprehensive framework for testing the resolution plans of the banks under its responsibility. Last September, it published guidelines to help the banks concerned carry out internal tests in order to assess their own capacity to enter, if necessary, into a resolution process (see EUROPE 13718/22).
The resolution planning cycle has been simplified. And the focus was placed on alternative resolution strategies, particularly those involving asset transfers. In addition, for the first time, in situ inspections were also carried out in four banking groups.
See the annual report: https://aeur.eu/f/mng (Original version in French by Mathieu Bion)