EBA guidelines

Read more about the final guidelines the EBA has adopted in relation to the RRD.

Guidelines aim to promote convergence of the practices of national competent authorities by setting out EBA’s view of appropriate supervisory practices or of how the primary legislation should be applied. Guidelines can be addressed to the competent authorities and/or financial institutions which are both expected to make every effort to comply.

Final guidelines

To date, the EBA has adopted the following guidelines in relation to the RRD.

Disclosure of confidential information

EBA Guidelines on the provision of information in summary or collective form for the purposes of Article 84(3) of Directive 2014/59/EU

These guidelines outline how confidential information collected under Directive 2014/59/EU should be disclosed in summary or collective form without identifying individual institutions or relevant entities. 

Range of scenarios to be used in recovery plans

EBA Guidelines on the range of scenarios to be used in recovery plans

These guidelines specify the range of scenarios of severe macroeconomic and financial distress which should be considered by firms to test the effectiveness of recovery options and the adequacy of the indicators contained in their recovery plans. We have notified the EBA of our intention to comply with these Guidelines.

Stress tests, asset quality reviews or equivalent exercises that may lead to support measures

EBA Guidelines on the types of tests, reviews or exercises that may lead to support measures under Article 32(4)(d)(iii) of the Bank Recovery and Resolution Directive

These guidelines specify the type of tests, reviews or equivalent exercises that may lead to extraordinary public support measures not triggering resolution. The guidelines detail the main features of the tests, reviews and exercises. These include:

  • a scope
  • a time horizon and reference date
  • a quality review process and
  • a common methodology

Measures to reduce or remove impediments to resolvability

EBA guidelines on the specification of measures to reduce or remove impediments to resolvability and the circumstances in which each measure may be applied under Directive 2014/59/EU

When assessing the resolvability of a firm or group, resolution authorities are to identify any impediments to resolvability. These guidelines provide further detail on the measures that resolution authorities can require firms and groups to take to reduce or remove identified impediments. They also specify the circumstances under which measures can be required. Any measures must be proportionate and necessary.

Triggers for use of early intervention measures

Guidelines on triggers for use of early intervention measures pursuant to Article 27(4) of Directive 2014/59/EU

These guidelines provide certain triggers for competent authorities to consider when deciding on the application of early intervention measures in relation to a firm. Some of these triggers are direct outcomes of the supervisory review and evaluation process (SREP), while others may be set by competent authorities. There are no quantitative thresholds prescribed in the guidelines, but a consistent application of triggers is encouraged.

Determining whether an institution is failing or likely to fail

Guidelines on the interpretation of the different circumstances when an institution shall be considered as failing or likely to fail under Article 32(6) of Directive 2014/59/EU

Determining that an institution is failing or likely to fail is a necessary condition to trigger resolution. These guidelines set out objective elements that should guide such a decision by competent and/or resolution authorities. In addition, procedural rules are specified on how to arrive at such a decision and the way it should link with the supervisory review and evaluation process (SREP).

Effectiveness of sale of business tool and threat to financial stability

Factual circumstances amounting to a material threat to financial stability and on the elements related to the effectiveness of the sale of business tool under Article 39(4) of Directive 2014/59/EU

These guidelines specify how resolutions authorities may decide not to comply with the open marketing requirements around the sale of business tool. They apply when complying would otherwise undermine the effectiveness of the sale of business tool and there is material threat to financial stability.

Determining if liquidation under normal insolvency proceedings may affect financial markets

Determination of when the liquidation of assets or liabilities under normal insolvency proceedings could have an adverse effect on one or more financial markets under Article 42(14) of Directive 2014/59/EU

Resolution authorities may decide to transfer assets/liabilities to asset management vehicles if liquidation of the institution under normal insolvency procedures may affect financial markets. These guidelines aim to specify a consistent and harmonised approach for resolution authorities to make such decisions.

Minimum services for a recipient to operate a transferred business

Minimum list of services or facilities that are necessary to enable a recipient to operate a business transferred to it under Article 65(5) of Directive 2014/59/EU

These guidelines specify a minimum list of services that resolution authorities may deem necessary for the recipient of the transferred business (for example, after a sale of business tool has been applied) to operate effectively. Resolution authorities have powers to require institutions under resolution to provide these services to the recipient.

Recovery plan indicators

Guidelines on the minimum list of qualitative and quantitative recovery plan indicators

These guidelines specify a minimum list of qualitative/quantitative indicators that need to go into recovery plans, spelling out how they may lead to activation of specific recovery measures. These indicators will be disclosed to competent authorities as part of wider recovery plan reviews.

Application of simplified obligations

Guidelines on the application of simplified obligations under Article 4(5) of Directive 2014/59/EU

These guidelines specify the criteria for assessing the impact of an institution's failure and winding up under normal insolvency proceedings on financial markets in order to determine whether simplified obligations in Article 4(1) of the Directive should apply to the institution concerned.

Conditions for group financial support

Guidelines on specifying the conditions for group financial support under Article 23 of Directive 2014/59/EU

These guidelines specify various conditions for the provision of financial support that must be satisfied to permit one group entity to provide financial support (based on a support agreement) to another group entity that meets the conditions for early intervention.

Criteria for business reorganisation plan

Guidelines on the minimum criteria to be fulfilled by a business reorganisation plan under Article 52(13) of Directive 2014/59/EU

These guidelines specify the minimum criteria that a business reorganisation plan is to fulfil for approval by the resolution authority pursuant to Article 52(7) of Directive 2014/59/EU.

Guidelines under development

The RRD provides that the EBA must also adopt guidelines on the following aspects of the Directive:

Subject

Article of RRD

EBA Consultation Paper

EBA consultation end-date

Interrelationship between the BRRD sequence of write-down and conversion and CRR/CRD IV

48(6)

EBA/CP/2014/29

03.01.2015

Rate of conversion of debt to equity in bail-in

50(4)

EBA/CP/2014/39

06.02.2015

Treatment of shareholders in bail-in or the write-down and conversion of capital instruments

47(6)

EBA/CP/2014/40

06.02.2015