Single Resolution Board

• - PRESS RELEASE
  ECB and EBA step up efforts to make banking industry data reporting more efficient
  18 March 2024
  - ECB and EBA establish Joint Bank Reporting Committee to make data reporting by the banking industry more efficient
  - New structure will harmonise and integrate reporting of statistical, supervisory and resolution data with the aim of developing common definitions and standards
  - Process will involve all relevant EU bodies, as well as national authorities and banking industry representatives
  The European Central Bank (ECB) and the European Banking Authority (EBA) aim to harmonise and integrate data reporting by the banking industry with the goal of improving efficiency and reducing the associated costs.
• “High-quality data is essential to fulfilling our mandate”, said ECB Executive Board member Isabel Schnabel.
• “I am pleased that we will have a structure in place to simplify and facilitate data reporting by the banking industry in an integrated, efficient and standardised system.”
  “A harmonised, proportionate and fit-for-purpose reporting system is a priority for the EBA,” said EBA Chairperson José Manuel Campa.
• One key tangible deliverable of the JBRC will be a common data dictionary for the reporting of statistical, supervisory and resolution data by banks.

This article analyses the European crisis management framework for banks. It concludes that key areas for improvement are the crisis management options for small and medium-sized banks as well as preparedness for systemic crises. The European Commission’s reform proposal represents an opportunity to implement the lessons learned over the last decade.

• Moreover, the ECB stands ready and has the necessary tools available to provide liquidity to the system if needed.
• We are not caught between a rock and a hard place, as our decision to raise interest rates by 50 basis points shows.
• Some people are drawing parallels between the Silicon Valley Bank (SVB) crisis and the Bear Stearns crisis in 2008.
• There was a strong agenda of regulatory reforms in Europe after the great financial crisis.
• Those changes have been implemented and the banks are subject to Basel III and to European banking supervision.
• Besides, SVB had a very unusual business model, which was highly exposed to interest rate risk and had a highly concentrated deposit base.
• Among the banks supervised by the ECB, the business models that rely more on deposits are more diversified.
• Financial stability is a precondition for achieving price stability, as it is necessary for the smooth transmission of monetary policy.
• In the specific case of SVB, the bank was extremely exposed to interest rate adjustments, and its core business was highly concentrated.
• Could Switzerland’s decision to impose losses on holders of high-risk bonds before shareholders have consequences for the euro area banking system?
• Moreover, in the European Union shareholders always absorb losses first – those high-risk instruments are only affected thereafter.
• At the last Governing Council meeting you decided to push ahead with your plan and raise interest rates to 3%.
• At the last Governing Council meeting we agreed on an interest rate hike that had already been indicated in February.
• We have also taken measures relating to our collateral framework and to our risk assessment and management tools.
• To achieve this, we have set out a multi-year plan to ensure that the banks meet our expectations.

• Public Hearing with Dominique Laboureix, Chair of the Single Resolution Board
  24-02-2023 - 10:46
  On 1 March the new Chair of the Single Resolution Board, Dominique Laboureix, will make his first appearance in the ECON Committee in that capacity since his appointment in December 2022.
• He succeeded Elke König, the first chair, who served in that role for 8 years.
• MEPs will have the opportunity to ask him about his plans for the organisation and about the forthcoming proposal by the Commission for the revision of the crisis management and deposit insurance framework.